Nigerians Celebrate Sallah Amid Price Hikes, Low Disposable Incomes

Muslims in Nigeria at the weekend celebrated Eid-el-fitri battling with price hike on consumables, accessories, fabrics, among others, and low disposable income, LEADERSHIP WEEKEND can now reveal.

The real wage and income which reflect the power of employee pay after accounting for inflation have fallen in the country by 100 percent, subjecting Nigerians to increasing pressures daily and forcing them to make hard choices, as prices of all products continue to rise.

This is just as lower income households with little or no cash cushion are making harder choices such as what to buy or not.

The spike in inflation is sending more than ripple frustrations to Nigerians, as some of the last minutes shoppers for Sallah had to go for inferior goods their money can afford, while others reduced the quantity of their wants to cope with the harsh economic reality.

Consumers purchase, generally, declined considerably despite the Sallah celebrations, as households continue to ration food amidst the harsh economic condition of the country.

In Islam, the 29 or 30 days Ramadan fasts end with fanfare on Sallah day when Muslims are expected to be in their happy mood, thanking God for seeing them through the fasting period and offer prayers in this regard.

But most Nigerians who spoke to our correspondents about their preparation for the celebrations lamented high inflation that has triggered the prices of virtually every good.

They pointed out that the harsh economy has crippled disposable income of consumers.

Checks by LEADERSHIP Sunday also revealed that most superstores, retail outlets and Quick Service Restaurants in town which used to be a beehive of activities during celebratory periods had few customers shopping for food items.

At the popular Mile 12 market in Lagos,  a shopper, Mrs Quburat  Ibrahim, expressed surprise as the big basket of tomatoes that sells between N10,000 and N12000 is being sold for N25,000, with the small basket now N13,000.

She lamented that it was never her plan to spend beyond her budget due to the economic challenges and slow rate of sales in her business.

She said settled for the small basket at N13,000, which she still finds outrageous.

Another shopper said she was lucky to get a sack of pepper early on Thursday morning for 13,000 from one of the Hausa seller who sells in bags instead of the baskets.

She added that the prices vary when it is put for sale in big and small baskets, which could go as high as N18,000 more or less.

However, 3 litres of vegetable oil now sells at N5,000 against the earlier rate of N4,500.

On why the sudden change in price of some of these consumables, an anonymous seller, he stated that the rate at which they buy the goods and cost of transportation keep increasing, leaving them with no choice than to adjust to the new rates.

Also, a butcher, Lawal Abubakar, expressed dissatisfaction that the spending power of Nigerians are at a minimal level.

He said while he knows how people troops into the market to buy goods, especially meat for the preparation of the Sallah feast, those who patronised him this year cannot be compared to the time past.

He linked the development to the fact that businesses are just picking up after the cash crunch and cash transfer failures experienced by Nigerians.

The butcher said, “With the amount I bought this meat I am to sell to my customer, I need to be mindful or else I might not make much profit from the sales.”

Our correspondents who went round Idumota, Idumagbo, Oke Arin markets in Lagos Island said consumers lamented hike in prices of food stuff, especially yam, tomatoes and beverages.

Hijab sales on the Lagos Island witnessed more patronage, as most travellers were seen buying them probably as celebration gifts for their loved ones in their villages.

Meanwhile, intra-transportation within Lagos increased almost by 50 per cent as motorists cashed in on the rush to exploit commuters.

For example, Idumota to Orile Iganmu which used to be N200 was N500 per drop on Thursday.

From Idumota to Sango Toll Gate which used to be between N700 and N800 rose to N1,200, Idumota to Ijora rose to N300 from N200, Idumota to Oyingbo rose to N300 from N200 and Idumota to Ikorodu rose from N500 to N800 per head,

As a result, most commuters with light goods had to trek to either Ijora Olopa or Oyingbo from Idumota in order to cut cost.

A man who simply identified himself as Mr Akeju inside a BRT bus said, “Though I am not a Muslim, my office is in Lagos Island. So, I used that opportunity to come to market to buy products for my family use irrespective of differences in price. It is mark of identifying with the mood of celebration. It is those who the celebration met alive that will join in celebration.”

Another anonymous shopper who spoke with LEADERSHIP Sunday said, “To be sincere, things are very bad. It is Sallah but you see that prices of foodstuffs keep rising. There is nothing we can do. There’s no money to celebrate Sallah.

“We are still trying to survive the hardship of the bungled naira redesign policy caused by the CBN. Things are very bad. People are suffering. How can we buy anything? Prices are still very high.”

Joseph Bello, a shop owner in Lagos while lamenting about the low patronage blamed the continued economic crisis on government policies.

“Usually, Sallah periods come with increased sales for us and high level of patronage from buyers. But see how we just sit here. People are not buying like before. Everybody is complaining; no money. Government should do something to stop this problem. It is affecting our business”.

Speaking on the general state of the economy, a painter in Lagos, Fatai Balogun, said, “We can’t even feed properly. If not for my siblings that have been supportive of me and my family, I wonder what would befall us. They are supporting us with school fees that have doubled in the last year.

“My business has been struggling as people no longer want to paint their houses because they are prioritising their spending.

He further noted that his plan is to change his business but lack of finance has made it difficult.