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Last year, Nigeria’s headline inflation reached a 17-year high at 21.47 percent in November. With the surge in fuel and food prices, and incessant hikes in interest rates, money in circulation got tighter and the younger generation (Gen-Z) felt it like they have never seen before.
The World Bank has recently said that the country’s accelerating inflation growth had eroded the N30,000 minimum wage by 35 percent, widening the poverty net with an estimated five million people in 2022.
For many within the age group of 18-30 years a mix of Gen Z, this is the first time they are experiencing accelerating inflation, and this is putting them off balance as they struggle with their finances.
“I hosted my friends for Christmas for the first time now that I have my place and nothing prepared me for how costly it was,” Stephen Uzo, a 25-year-old photographer and project manager, said.
“I spent over N60,000 getting food and drinks, everything was ridiculously expensive, and I still had to send money home,” he said.
Uzo said that he had envisaged spending a lot but not this much.
“Asides from that, my rent was due in December and I had to dip into my savings to make up for it, I am scared that at this rate I won’t own a property,” he said.
The unrelenting inflation was induced by several factors. Nigeria was recuperating from the effect of COVID-19 when the Russia-Ukraine war started; the two countries being major players in the supply of global grains, causing an increase in commodity prices.
The price of food, diesel, fuel, and transportation soared so high last year and for many, Gen Z inclusive rising prices meant spending more.
Many youths told BusinessDay how the situation has made them spend on only necessities as they cannot afford their wants.
Read also: Inflation robs Nigerian stock traders of real returns
“I spent up to 50,000 on fuel in December, double my budget for the month. The cost of living crisis gives me anxiety,” said Tofunmi Adeola, a 24-year-old product designer.
Olamide Olatide, a 23-year-old female lamented that she spends over N3,000 daily on transportation to work.
“I live in Ajah and work at Apapa. I spend N3000 daily on transit and currently can’t afford to rent a place close to work as the prices are outrageous.”
Olatide said that all of these disrupted her plans to relax during the festive season, as she had to do usher jobs to make money for the New Year.
“I’ve always known adult life is hard. I think things are more difficult in our own time. In my few years as an adult, I’ve experienced a pandemic, economic recession, been close to a Third World War, and now a cost of living crisis. The odds aren’t in our favour,” she said.
