Soaring costs, shrinking income dampen yuletide celebrations



In this feature, VICTOR AYENI delves into the harsh realities facing Nigerian citizens and business owners as they grapple with shattered expectations of a festive and joyous Christmas. From the crippling high prices of food to the unavailability of physical cash to the devastating blow of low patronage, he mirrors the challenges that have cast a shadow over what should be the merriest time of the year

Amid the vibrant hustle of a bustling morning in Alagbole, a lively town straddling the border between Lagos and Ogun States, the air was thick with anticipation and the scent of freshly cooked delicacies.

Chef Dotun Oladokun, his face a canvas of focus and determination, worked tirelessly against the clock.

With swift, precise movements, he scooped steaming jollof rice and tender, well-spiced meat into rows of gleaming food packs. Beside him, his assistant moved with the same speed, organising the packs for seamless distribution.

These meals were no ordinary orders—they were bound for a church Christmas concert in Lagos, a festive event set to unfold later that day.

As the Yuletide season loomed ever closer, the town buzzed with the electric excitement of Nigerians preparing to celebrate a time marked by indulgent purchases, grand orders of food items, and the shared joy of the holidays.

For Oladokun, it was a race not just against time but against the mounting challenges of the season.

Christmas is when individuals typically travel to reunite with their families, host parties, and attend concerts or special services in their churches.

“I’ve been awake since 5 am to start with this preparation,” Oladokun told Saturday PUNCH as he wiped the sweat off his brow.

As his phone buzzed incessantly with messages, the chef paused to take a call from one of his clients before resuming his count of the sorted food packs.

The clock edged closer to 9 am, and with the final pack arranged and ready for delivery, the 28-year-old wiped his face gleaming with sweat and leaned back in a plastic chair, taking a moment to catch his breath.

“I am happy to have received this order because, to say the truth, this year has been a tough one for our business. The prices of food keep increasing each time you go to the market.

“And with the way it is now, people are not ordering food like they used to because our prices, along with delivery costs, have increased within a short time,” Oladokun noted as he momentarily sipped from a malt drink.

Gesturing toward the neatly arranged food packs beside him, Dotun explained to Saturday PUNCH how he narrowly avoided incurring a loss because the woman who placed the order had paid less than the cost of the ingredients.

“I’m sure she knows how costly things are in the market, but I just considered the fact that she’s a friend of my pastor. She brought down the money she ought to pay me to a ridiculous amount, but what can I do except hope for better patronage” he said throwing up his hands in exasperation.

Christmas vibes

Saturday PUNCH gathered that while many Nigerian adults fondly recall the joyous and memorable Christmas celebrations of their childhood, the narrative has shifted significantly in recent years.

Christmas celebrated annually on December 25, marks the birth of Jesus Christ and is observed by billions of people worldwide. Over time, the holiday has transcended religious boundaries, with non-Christians in many parts of the world also partaking in the festivities.

According to Statista, a leading platform that provides access to a wide range of market, industry, and economic data, Christmas typically serves as the largest economic stimulus for many countries, with sales dramatically increasing across almost all retail sectors during this time.

It is projected that this year, total holiday retail sales will reach new heights of $973bn.

In a report, the Economics Observatory noted that the “golden quarter” of October to December has seen a significant increase in sales for many retailers, leading to a corresponding surge in profits.

Beyond its economic significance, for many Nigerian families, the excitement of the Yuletide season, combined with the charm of the Harmattan weather, creates an atmosphere filled with endless social activities.

Preparations begin weeks in advance, with families decorating their homes with colourful, illuminating lights and Christmas trees, while traditional delicacies like jollof rice and fried chicken grace many tables.

Low tempo, high prices

Traditionally a time for reunions, Christmas sees many Nigerians travelling from cities to their hometowns and villages to celebrate with friends and loved ones and indulge in the joys of the season.

However, this year, the joyous spirit that epitomes the festive spirit seems to have waned.

The surge in the prices of food, clothes, decorations, transport, and other leisure activities has dampened the usual Christmas cheer.

With less than a week to go, a sombre atmosphere has settled over the holiday season, a direct result of the country’s challenging economic situation.

“The Christmas vibe this year is low. Although I’ve seen an increase in demand for chicken, turkey, and eggs on my farm, it’s nothing like other years,” said a farmer, Emeka Ukpai, while speaking to Saturday PUNCH.

“Except for the very wealthy, like politicians, most citizens are opting for a low-key celebration because food prices have more than tripled since last December,” he lamented.

The latest Consumer Price Index report from the National Bureau of Statistics reveals that food inflation rates above 40 per cent were recorded in Abuja and 19 states in November 2024.

The report noted substantial increases in food prices across various states, exacerbating the cost-of-living crisis for millions of Nigerians.

The 19 states with food inflation rates above 40 per cent in November 2024 include Sokoto, Yobe, Edo, Gombe, Kebbi, Abia, Zamfara, Anambra, Kano, and Oyo, among others. Together, these states represent about 53 per cent of Nigeria’s total states.

Sokoto topped the list with a food inflation rate of 51.3 per cent, though this marked a slight decrease from the 52.19 per cent recorded in October.

According to the NBS report, food inflation saw a sharp rise, reaching 39.93 per cent in November 2024, up from 32.84 per cent in the same period last year.

Highlighting the dramatic price hikes within a year, Lagos-based food vendor, Somtochukwu Eze, told our correspondent that the prices of staples like rice, beans, and yam have skyrocketed.

This, he added, also applies to chicken, turkey, and fish, which he lamented are now beyond the reach of many Nigerians.

“Imported rice is now N135,000 and local rice costs between N100,000 and N108,000. Live chicken is now between N15,000 and N25,000. It’s rare to find a chicken for N10,000 now.

“A big bottle of groundnut oil is N6,000, while the small bottle costs N3,000. Kings oil, Mamador oil, and others now range from N7,000 to N15,000, depending on the size,” Eze said.

Data from the NBS, further revealed that headline inflation, which tracks consumer prices, rose to 33.88 per cent in October, while food inflation surged to 39.16 per cent during the same period.

Saturday PUNCH findings showed that the price of rice, a staple food for many Nigerians during Christmas, jumped from N60,000 last December to N105,000 for just one bag.

Similarly, the cost of live chicken has soared by 66.67 per cent, rising from N15,000 to N25,000 within a year.

The price of tomatoes, a common household item, also increased by 8 per cent, rising from N25,000 to N27,000 per basket.

“We’re talking about a minimum wage of N70,000, but a bag of rice is now over N100,000. Can you see what’s at stake? How do you expect someone earning N70,000 a month to celebrate Christmas if they don’t go into debt?” a teacher, Sheriff Alabi, told Saturday PUNCH with a look of despair.

Challenging business time

Commenting on the impact of rising prices on his business, a Lagos-based chef, Nathaniel Praise, who manages Deli Food, pointed out that soaring food costs have become a major challenge for the food delivery industry.

“When prospective clients look at my flyer and see the high cost of our food and soups, they recoil. But the reality is that, with food prices increasing at this rate, many working-class Nigerians may not be able to afford it,” he said.

To keep his business afloat, Praise revealed that he has turned to private dining services, event catering, and even travelling to other states to cook for clients.

“Right now, I’m on a tight schedule in terms of work. Some people prefer to go to the market themselves and purchase food rather than place an order because, if we don’t scale up, we will be running at a loss,” he added.

Echoing a similar concern, Ogun State-based event caterer, Owodunni Oladimeji noted that “foods such as jollof rice, which is a common feature on the Christmas menu, have now increased in cost compared to what they used to be.”

“The patronage so far has not been as encouraging as it was in previous years when Christmas approached. We know there’s usually panic buying and high food costs, but this year, people are not financially buoyant, and it’s obvious,” he said.

According to the latest Jollof Index report, the average cost of preparing a pot of jollof rice for a family of five is N21,300.

Conversely, chef Benedicta Christopher told Saturday PUNCH that business has been as lucrative as usual for her.

Citing factors such as food quality, social networks, and geographical location, Christopher emphasised that the “food business will always thrive, especially in areas with working-class people who are willing to pay rather than go to the market.”

“Festive seasons are our peak seasons for making more money, and you will rarely find a chef who knows their trade is idle during this time. Despite the economic downturn, we’re still receiving plenty of clients,” she stated.

Reacting to the trend of food inflation in the country, an economist, Aderemi Osobu, criticized the Federal Government for its delay in implementing its duty-free food policy.

“If the Federal Government had implemented the duty-free food policy as suggested, I’m sure by now things wouldn’t have gotten this bad, because food prices would have stabilised. There’s still no official statement confirming the implementation of the policy, and that shouldn’t be the case,” she said.

In July, the Federal Government announced a 150-day duty-free import window for food items as part of its efforts to combat rising inflation, which has pushed many Nigerians into poverty.

Under this scheme, imported food items will be subject to a Recommended Retail Price.

The affected items include maize, husked brown rice, wheat, and cowpea.

Reduced patronage

Aside from the high cost of food, many Nigerians who rely heavily on cash for their transactions are facing significant challenges this Christmas as the country grapples with an ongoing cash shortage.

In addition to this, the price of a litre of Premium Motor Spirit has surged from an average of N671 in December 2023 to N1,025, representing a staggering 225 per cent increase.

For many who travel from urban to rural areas to celebrate Christmas, this has drastically increased transportation costs.

Furthermore, the exchange rate has been identified as a major factor behind the spike in prices for imported goods, including clothes, shoes, decorations, toys, and other accessories that families traditionally purchase for the Yuletide season.

A vendor of light fixtures and decorations, Francis Alajemba, lamented the declining purchasing power, which he said has led to low patronage as Christmas approaches.

He expressed concern that some of the decorations he ordered have remained unsold, fearing this trend will continue until the end of the year.

“The problem is that there is no money circulating. Many people are hungry. This year, almost everyone you meet, whether vendor or customer, is complaining,” Alajemba said.

Also experiencing low sales, a clothier, Olabode Are in Ibadan, Oyo State, explained that although many customers have visited his shop, they haven’t made enough purchases.

“Many Christmas clothes are imported from Dubai, China, and the United Kingdom, and now the situation has worsened due to their high prices,” Are said. “Customers come to window shop, then leave almost empty-handed. This is beyond our control because our prices are fixed based on what we pay to our distributors. We need the government’s help to make importation more favourable.”

Families groan

Lamenting the lack of physical cash and exorbitant food prices, a teacher and mother of two, Mrs Christianah Ayobami, blamed poor government policies on the worsening hunger across the nation.

She also criticised the government’s “talk and no action” approach, which she said has deepened poverty among citizens.

“Nowadays, you can’t even afford to eat three times a day anymore. People now eat once or twice a day because, as they recover from food price hikes, fuel prices hit them, and then electricity, rent, and school fees follow. When you think about the endless cycle of responsibilities, you’re forced to either celebrate Christmas in moderation or not celebrate at all. I can’t even afford to buy new clothes, let alone for my children. What matters now is food,” the teacher said, her voice tinged with sadness.

“I’m in debt. Where is the Christmas to celebrate?” asked Daniel Ogunleye, a father of three and shoe vendor. “I’ve told my wife we’ll have to do it low-key this year because how can I afford the usual activities without sinking deeper into debt?”

Also lamenting the low mood surrounding this year’s Christmas, a pharmacist, John Echebiri, said he has been unable to travel to the East to see his father and has had to take on two jobs to make ends meet.

“For me, this year’s Christmas should just come and go. I can’t afford to travel home due to the high costs, and I have rent to pay early next year. All I can do is send money home to my father and eat what I can afford,” he said.

Explaining the possible causes behind the sharp rise in the prices of two essential stew ingredients—tomatoes and pepper—a vendor selling raw food in Ibafo, Ogun State, Innocent Agu, pointed to the growing insecurity in northern Nigeria.

He further noted that the cost of vegetables like cabbage, cucumber, carrots, and green peas, which are staples during the festive season, has also increased and could rise further before the year ends.

“I think Nigerians will need to brace themselves for next year because we don’t know what plans the government has in store for us. This year has been tough; everyone is just struggling,” Agu added.

Offering advice for Nigerians navigating this challenging period, a financial analyst, David Nwamara said, “Regardless of what’s going on, we just have to stay positive and hold on to a hopeful expectation.”

He acknowledged the country’s economic struggles and rampant inflation but emphasised the importance of supporting one another during the festive season.

“It’s no longer about keeping up with the Joneses; it’s about what you can afford. What matters now is finding happiness and hope during these tough times. Don’t take loans to celebrate Christmas, and don’t spend beyond your budget,” he advised.



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