P
PressRoom
Guest
It is a 2 days to Christmas, but things appears bleak for most Nigerians. The Christmas bells are not jingling, neither are the lights blinking. Many places that usually had colourful Christmas decorations are looking bland and dreary.
Usually, this ought to be boom time for traders selling clothes, as those in search of choice apparels for the Yuletide would have visited various markets across the country. But this year, it is not business as usual. Here is a look at why this is so and why Nigerians should be worried about this year's christmas.
1. Recession/Bad Economy: Basic necessities have become so expensive. Aside from paucity of funds and volatile foreign exchange rate, prices of goods and services have gone up without commensurate increase in income.
Not long ago, the National Bureau of Statistics (NBS) revealed that the Nigerian economy had recorded two consecutive quarters of economic contraction.
According to the agency, in Q1 2016, the GDP growth was negative (-0.36 per cent). The Q2 2016 data reflects even a larger contraction, which was -2.06 per cent. The worst was yet to come as the GDP in the third quarter shrank badly to 2.24, thereby worsening the chances of the country getting out of the economic recession this year.
The agency also noted that the rate of price inflation for the months of September and October 2016 were 17.9 per cent and 18.3 per cent, respectively, while official statistics also indicated that the country’s unemployment rate increased to 12.15 per cent and 13.3 per cent during the first and second quarters of 2016.
2. Increment In Prices of Goods: The reality of the bad economy is evident in the food and commodities markets. A market survey conducted by Daily Sun showed that prices of everything, especially food items, have increased by more than 100 per cent.
In these markets, it was more like the survival of the fittest, as market women brusquely yelled at those who could not afford their wares to make way for more willing customers. To a first-time visitor, the impression of the markets would be that of a warfront.
Many shoppers can’t believe that prices of commodities have more than tripled, just days to Christmas and the New Year. For them, it was just a taste of things to expect in 2017.
A bag of rice that was sold at N11,000 last year now costsr between N18,000 and N23, 000. A bushel of rice, which hitherto cost N150 is now pegged at N300. The traders complained about the soaring prices of food items, adding that they also bought the items at very high prices. They were unhappy, noting that buyers were cutting down on their expenses. They all concurred that this year’s celebrations might be low-key.
From all indication, most homes would have to do without live chickens this Christmas and opt for processed ones. Now, chickens that cost N1,500, N2,500 and N4,500 last year are now being sold at N2,500, N5,000 and N6,000, respectively, with the possivility of further increase in price before Christmas and New Year.
3. Non-payment of Salaries: More than 15 states in Nigeria cannot pay workers' salaries in Nigeria, with several backlogs from different states. Workers in some states across the country yesterday got furious over their unpaid salaries. For instance, Governors and top civil servants were put under pressure in Ondo, Taraba, Gombe, Bayelsa and Zamfara states as workers got anxious over an imminent Christmas celebration on Sunday. President Muhammadu Buhari yesterday admonished governors to pay workers from the N525b debt-service refund which the states have been getting. He declared as unacceptable the situation in which workers are owed salaries for months.
In Ondo State, workers led the Accountant General to the bank to facilitate the payment of one month salary approved by Governor Olusegun Mimiko out of the seven months they are being owed.
Bayelsa workers were angry when they failed to get money from the bank after the government announced the payment of salaries.
Workers shut down the government secretariat in Taraba over unpaid eight months wages. There were protests in Zamfara and Gombe states.
Taraba workers under the auspices of the Joint Public Service Negotiating Council (JPSNC) shut down the secretariat to protest the non- payment of salaries and pension. On Monday, the Government House was shut down by protesting footballers, who were demanding payment of their 21 months salaries.
This is the situation across many Nigerian states.
4. Volatile Foreign Exchange: The value of the naira against the US dollar has been extremely volatile in the interbank foreign-exchange market in the aftermath of the depegging in June. The currency has drastically depreciated against almost every foreign currency. The standard of living around Nigeria has generally gone up as exports are now more competitive and imports more expensive. Basically, the economy is in a recession, and inflation is worse than ever. A large number of people are praying for a Christmas miracle where the dollar will no longer be as high as NGN 470 to $1 on the black market, but will normalize back to at least NGN 150 to $1 as it was just a year back.
5. Cut in Civil Servants' Salaries: Early December 2016, The Federal government of Nigeria slashed the November's salaries of civil servants in ministries, departments and paratatals. While some were said to record as high as 50% cuts, others could not ascertain how much they had been short-changed. The FG explained that the perceived shortfall was as occasioned by the implementation of the directive of the Joint Tax Board on the payment of income tax, to which had been communicated to the MDAs since 2012, to ensure that correct taxes are paid by the workers.
6. Low turnout at motor parks: For transport companies, it is also not business as usual. There has been a lull in their business. The parks have not been as busy as they should be at this time of the year. It is now a worrisome situation for the transport companies. Some of them lament that unlike in the past when all buses in the fleet would have left the park by 7am, these days have been uneventful, with half of the buses empty at the park, waiting for passengers by 10am.
7. Erratic Power Supply: Still yet, Nigeria still cannot boast of a stable power supply. Most homes depend on generators to power their refrigerators and other home appliances. But, fuel is not cheap. It is sold at N145/litre. Nigerians are not sure of what this Christmas season holds in terms of power supply or they have to spend their money buying fuel.
Usually, this ought to be boom time for traders selling clothes, as those in search of choice apparels for the Yuletide would have visited various markets across the country. But this year, it is not business as usual. Here is a look at why this is so and why Nigerians should be worried about this year's christmas.
1. Recession/Bad Economy: Basic necessities have become so expensive. Aside from paucity of funds and volatile foreign exchange rate, prices of goods and services have gone up without commensurate increase in income.
Not long ago, the National Bureau of Statistics (NBS) revealed that the Nigerian economy had recorded two consecutive quarters of economic contraction.
According to the agency, in Q1 2016, the GDP growth was negative (-0.36 per cent). The Q2 2016 data reflects even a larger contraction, which was -2.06 per cent. The worst was yet to come as the GDP in the third quarter shrank badly to 2.24, thereby worsening the chances of the country getting out of the economic recession this year.
The agency also noted that the rate of price inflation for the months of September and October 2016 were 17.9 per cent and 18.3 per cent, respectively, while official statistics also indicated that the country’s unemployment rate increased to 12.15 per cent and 13.3 per cent during the first and second quarters of 2016.
2. Increment In Prices of Goods: The reality of the bad economy is evident in the food and commodities markets. A market survey conducted by Daily Sun showed that prices of everything, especially food items, have increased by more than 100 per cent.
In these markets, it was more like the survival of the fittest, as market women brusquely yelled at those who could not afford their wares to make way for more willing customers. To a first-time visitor, the impression of the markets would be that of a warfront.
Many shoppers can’t believe that prices of commodities have more than tripled, just days to Christmas and the New Year. For them, it was just a taste of things to expect in 2017.
A bag of rice that was sold at N11,000 last year now costsr between N18,000 and N23, 000. A bushel of rice, which hitherto cost N150 is now pegged at N300. The traders complained about the soaring prices of food items, adding that they also bought the items at very high prices. They were unhappy, noting that buyers were cutting down on their expenses. They all concurred that this year’s celebrations might be low-key.
From all indication, most homes would have to do without live chickens this Christmas and opt for processed ones. Now, chickens that cost N1,500, N2,500 and N4,500 last year are now being sold at N2,500, N5,000 and N6,000, respectively, with the possivility of further increase in price before Christmas and New Year.
3. Non-payment of Salaries: More than 15 states in Nigeria cannot pay workers' salaries in Nigeria, with several backlogs from different states. Workers in some states across the country yesterday got furious over their unpaid salaries. For instance, Governors and top civil servants were put under pressure in Ondo, Taraba, Gombe, Bayelsa and Zamfara states as workers got anxious over an imminent Christmas celebration on Sunday. President Muhammadu Buhari yesterday admonished governors to pay workers from the N525b debt-service refund which the states have been getting. He declared as unacceptable the situation in which workers are owed salaries for months.
In Ondo State, workers led the Accountant General to the bank to facilitate the payment of one month salary approved by Governor Olusegun Mimiko out of the seven months they are being owed.
Bayelsa workers were angry when they failed to get money from the bank after the government announced the payment of salaries.
Workers shut down the government secretariat in Taraba over unpaid eight months wages. There were protests in Zamfara and Gombe states.
Taraba workers under the auspices of the Joint Public Service Negotiating Council (JPSNC) shut down the secretariat to protest the non- payment of salaries and pension. On Monday, the Government House was shut down by protesting footballers, who were demanding payment of their 21 months salaries.
This is the situation across many Nigerian states.
4. Volatile Foreign Exchange: The value of the naira against the US dollar has been extremely volatile in the interbank foreign-exchange market in the aftermath of the depegging in June. The currency has drastically depreciated against almost every foreign currency. The standard of living around Nigeria has generally gone up as exports are now more competitive and imports more expensive. Basically, the economy is in a recession, and inflation is worse than ever. A large number of people are praying for a Christmas miracle where the dollar will no longer be as high as NGN 470 to $1 on the black market, but will normalize back to at least NGN 150 to $1 as it was just a year back.
5. Cut in Civil Servants' Salaries: Early December 2016, The Federal government of Nigeria slashed the November's salaries of civil servants in ministries, departments and paratatals. While some were said to record as high as 50% cuts, others could not ascertain how much they had been short-changed. The FG explained that the perceived shortfall was as occasioned by the implementation of the directive of the Joint Tax Board on the payment of income tax, to which had been communicated to the MDAs since 2012, to ensure that correct taxes are paid by the workers.
6. Low turnout at motor parks: For transport companies, it is also not business as usual. There has been a lull in their business. The parks have not been as busy as they should be at this time of the year. It is now a worrisome situation for the transport companies. Some of them lament that unlike in the past when all buses in the fleet would have left the park by 7am, these days have been uneventful, with half of the buses empty at the park, waiting for passengers by 10am.
7. Erratic Power Supply: Still yet, Nigeria still cannot boast of a stable power supply. Most homes depend on generators to power their refrigerators and other home appliances. But, fuel is not cheap. It is sold at N145/litre. Nigerians are not sure of what this Christmas season holds in terms of power supply or they have to spend their money buying fuel.