One of the most devastating and frustrating things that happen to people is to realize that despite working so hard to make ends meet, they still can not foot their bills as supposed, hence all the efforts seem not to yield tangible results. This is the sad reality of most Nigerians.
Certain factors in Nigeria have necessitated expenses to always sail above income, making it difficult for most individuals and families to live above the poverty level. The ugly situation is compounded by the perpetual fluctuating exchange rates and rising fuel costs in the country.
The above-mentioned factors, among others, are the primary cause of the prevailing hardship in the country as the exchange rate and price of fuel affect the cost of almost every other commodity and service in the country, resulting in an overall high cost of living.
Essential goods and services, ranging from food and transportation to housing and healthcare, have become exorbitantly expensive due to the current price of petrol and the value of the US dollar against the naira.
For instance, US Dollar to Nigerian Naira exchange rate was ₦448 on December 19, 2022, fast forward to January 28, 2025, and the rate has climbed to ₦1,554. This unimaginable increase has made imported goods, including essential items and raw materials for local production overly expensive, making the cost of basic necessities rise above the purchasing power of the average Nigerians.
For example, the higher fuel prices result in increased fares for public transportation, which makes it more expensive for commuters who go to work or conduct business. Businesses also face higher operating costs, which they often pass on to consumers in the form of higher prices.
Another contributing factor that is making this ugly situation becoming worse, is the stagnant wage system in the country. While the price of items and cost of living entirely keeps skyrocketing, the wages keep retarding or even remains stagnant. This disparity has made it very difficult for most Nigerians with less disposable income, to ably cover their expenses.
Additionally, Nigeria is faced with a high level of unemployment, combined with the apparent underdevelopment of the country which also plays a crucial role in the economy. With the scarce job opportunities prevalent in the country, many Nigerians find it difficult to secure a good-paying job that can sustain them in this present economy. Consequently, this makes them more vulnerable to coping with rising expenses.
The consequences of this unpalatable economic situation are devastating and even disastrous as it often coerces people to sacrifice basic necessities such as healthcare services, good education and many others which may have a long-term effect on them.
To ameliorate the situation, the government needs to make people-centric policies, such that will promote economic growth, create jobs, and ensure that wages keep pace with the cost of living. Also, stabilizing the value of the dollar to the naira as well as reducing the price of petrol which essentially affects everything in the country.
Written By Vincent Ndu