On August 1, 2024, thousands of mostly young people poured onto the streets across Nigeria to protest against the country’s worst cost-of-living crisis in a generation. Security forces fired tear gas to disperse protesters in several places, including the capital, Abuja, and the northern city of Kano. The demonstrations were fueled by rising living costs, and some protesters chanted, “We are hungry” as they voiced their grievances.
During the protest, the Nigerian police has been accused of firing on the protesters who from all indications are involved in a peaceful protest which is within the exercise of their individual human rights.
The cost-of-living crisis in Nigeria has been exacerbated by several factors:
- Fuel Subsidy Removal: President Bola Tinubu removed fuel subsidies, impacting citizens’ purchasing power and contributing to rising costs12.
- Inflation: Nigeria faces surging inflation, reaching a 28-year high. Strategies that worked elsewhere have not been effective in curbing inflation in Nigeria13.
- Food Insecurity: As food prices increased, President Tinubu declared a state of emergency on food insecurity. However, a more comprehensive strategy is needed to transform agriculture and rural life14.
- Stagnant Wages: Despite rising costs, wages and salaries have remained stagnant, exacerbating the crisis5.
- Currency Depreciation: Economic policies led to the local currency’s record low against the dollar, impacting affordability5.
These challenges have sparked protests across Nigeria, highlighting the urgency of addressing the cost-of-living crisis2. 🇳🇬📉
How are businesses and households coping with these challenges?
Businesses and households in Nigeria are employing various strategies to cope with the cost-of-living crisis:
- Cutting Costs: Many businesses are trimming expenses by reducing non-essential spending, renegotiating contracts, and streamlining operations.
- Diversification: Some households are diversifying income sources by engaging in side hustles or small-scale businesses to supplement their primary income.
- Community Support: Communities are coming together to share resources, such as food and other essentials, to alleviate the impact of rising prices.
- Adjusting Consumption Patterns: Consumers are adjusting their consumption patterns, opting for more affordable alternatives and reducing discretionary spending.
- Advocacy and Protests: Civil society groups and citizens are advocating for policy changes and participating in protests to raise awareness about the crisis and demand government action.
However, these coping mechanisms are often short-term solutions. Long-term structural changes are needed to address the root causes of the crisis and ensure sustainable livelihoods for Nigerians.
In the meantime, the mercies are in the throes of unimaginable hardship and suffering which the government seems to be unable to lessen or resolve. These covers fuel and transportation, healthcare, foodstuffs and general sustenance and security of life.
