The Christmas season is usually a time of joy; of celebration; of holidaying. A time most people down tool after a year of toil and work and celebrate with family and loved ones. But this year’s celebration is different. It is coming at a time Nigerians are experiencing one of the worst periods in their lives.
The Nigerian economy officially plunged into recession since the second quarter of 2016. According to data from Nigerian Bureau of Statistics, Nigeria’s Gross Domestic Product declined by -2.06 percent (year-on-year) in the second quarter and -2.24 in the third quarter in real terms – the worst such performance in over 30 years. Inflation is heading for the roof – presently, at 18.48 percent. Unemployment and under-employment among the youth is now at 45 percent. The beleaguered Naira is in a free fall (now N495 to the dollar). The misery index is now at 47.7 – the fifth worst such index in the world.
To be sure, these are not just numbers alone. Just two examples will do. This time last year, a bag of rice sold for between N9, 000 – N10, 500. Now, the same bag of rice goes for between N20, 000 and N25, 000. Similarly, last year, a 25 litre of vegetable oil was sold for between N6, 500 and N7, 000. Now, it goes for as high as N20, 000. Prices of essentials like bread, milk, sugar, and grains have doubled or tripled within the last six months and there is a feeling among traders and businesses these days that stocks (of goods) are more important than cash because prices just keep going up daily.
The economic recession has also resulted in lower production and manufacturing. Data from the Manufacturers Association of Nigeria (MAN) show that over 272 businesses have closed shop in the country over the last year. 222 of those were SMEs while 50 were manufacturing companies. Sadly, most of the manufacturing companies that closed shop in Nigeria relocated to neighbouring countries with more friendly business policies from where they manufacture and import to Nigeria. The total job losses since 2015 have been officially put at 4.58 million, according to the figures from the NBS.
For many Nigerians, who have to contend with a devalued and depreciating Naira, loss of jobs, reduced income as a result of businesses shutting down and skyrocketing prices of goods and services, this is not just a time of recession but depression and hopelessness. The groundswell of enthusiasm and hope that pervaded the country 18 months ago had been suddenly replaced by doom, despair and anger. More painfully is that fact that their supposed government of change dragged them into this depression and is only preoccupied with blaming everyone else except itself for the fate of the country even when it is apparent to all that its inactions and crude economic policies have been responsible for the woes of the country.
Clearly, out of desperation, millions of Nigerians have resorted to sports betting and participation in pyramid and ponzi schemes that promise mouth-watering returns to survive. A research done by BusinessDay showed that “daily bets have surged to N15 billion cumulatively across all betting companies in 2016” while more than 3 million Nigerians have registered for the MMM scheme despite the clear warning of Nigerian authorities and the order given to the police by the House of Representatives to arrest promoters of the scheme recently. BusinessDay also found that MMM is now the sixth most visited website in Nigeria, according to Alexa ranking.
Expectedly, the MMM Ponzi scheme has frozen all accounts until January, a prelude to shutting down its operations.
This is the condition under which Nigerians are observing the season.
But despite all the troubles, Nigerians have a reason to be hopeful. The season is one that inspires hope; that makes us to look forward to better days ahead. We only hope the government too will catch the bug and negotiate a different bend. That will necessarily involve the government to stop digging and concentrate its effort on getting the country out of the hole it plunged it. We wish all Nigerians a Merry Christmas!!!
