Economic woes dampen Christmas celebrations with skyrocketing prices and transport fare hikes

A somber atmosphere envelopes the 2023 Christmas celebrations for the majority of Nigerians, with soaring prices of essential items and an unprecedented hike in transportation fares. The nation’s ongoing economic crisis, exacerbated since the removal of fuel subsidies in May 2023, has left citizens grappling with a low-key festive season.

Price Surge in Essential Commodities:

The cost of essential commodities has witnessed a drastic surge, particularly in the aftermath of the fuel subsidy removal. A survey conducted over the weekend highlighted a threefold increase in the prices of food items such as rice, chicken, goat, and other essentials. For instance, local rice, previously sold at N44,000, is now reaching as high as N61,000 in parts of the Federal Capital Territory (FCT), Abuja. Similarly, a 25-litre jerry can of vegetable oil has risen from N30,000 to over N45,000.

Impact on Festive Traditions:

Traditionally, households, especially Christians, engage in purchasing goats and chicken for Christmas festivities. However, this year has witnessed a departure from this norm due to the exorbitant prices of these items. A goat, for instance, now costs about N70,000 and above, contributing to a shift in consumer preferences towards more affordable options like chicken.

Transportation Fare Hikes:

Despite President Bola Tinubu’s approval of a 50% discount for inter-state road travel during the festive season, transport companies continue to charge exorbitant fees. The approved discount, effective from December 21 to January 4, 2024, was intended to alleviate the financial burden on travelers. However, numerous reports indicate that passengers are still grappling with high fares, with some transport companies implementing the discount retroactively and asking passengers to expect a refund.

Stranded Passengers and Flight Ticket Surges:

Many travelers find themselves stranded at various parks, especially in Abuja, due to a scarcity of available buses. Additionally, flight tickets have become more exorbitant, with a one-way flight from either Abuja or Lagos to any part of the East costing well above N200,000.

Consumer Protection and Market Dynamics:

The Federal Competition and Consumer Protection Commission (FCCPC) is monitoring companies against excessive price hikes, though the commission lacks the authority to impose prices in a free-market system. The Executive Vice Chairman of the FCCPC, Babatunde Irukera, expressed the agency’s commitment to monitoring the situation but acknowledged the limitations within the current economic framework.

As Nigerians navigate these challenges, the festive season remains overshadowed by economic uncertainties and constraints.