By Hauwa’u Abubakar
Overtime, Nigerians have experienced hike in basically all goods and services required to live and run their day to day activities. This goes without saying has been aggravated by proclamation of subsidy removal on premium motor spirit (PMS) popularly known as petrol, some three months ago.
It becomes imperative to understand the factors responsible for high cost of living as it leads to higher expenditure for individuals and households. Some of the factors leading to this unwanted development include inflation or an increase in the general level of prices.
Nigeria has experienced persistent inflation over the years, with prices of goods and services continuously rising. This reduces the purchasing power of individuals, making it more challenging to afford basic necessities. Also, depreciation of the country’s currency.
The naira, has faced fluctuations and depreciation in value against major foreign currencies like the US dollar. This has led to higher import costs, making imported goods more expensive for consumer. Furthermore, dependence on imports for various products, including food, fuel, clothings, building materials and other consumer goods, has the tendency to result in higher prices due to transportation cost, tariffs, and exchange rate fluctuations.
Again, infrastructural challenges is another force to reckon with. Inadequate infrastructure, such as power shortages and poor transportation networks can increase the cost of goods and services. Businesses often have to bear the burden of additional expenses since they are not provided by the authority and they eventually pass these expenses to consumers so as to make profit and keep their trade afloat.
Income quality as a factor. Nigeria has a significant income disparity, with a large portion of the population living in what is termed multidimensional poverty due to the disparity. This poverty limits access to basic resources like education, healthcare, and housing, further exacerbating the cost of living for many individuals. Government policies such as removal or reduction of subsidies, can lead to price hikes for essential commodities also.
To address this worrisome situation, it is firstly important for citizens to understand that the high cost of living in Nigeria is a complex issue influenced by various factors such as those aforementioned. Efforts to address this challenge should involve measure to tackle inflation, improve infrastructure, diversifying the economy, and promoting policies that support income equality and affordability for citizens.
Strategies to employ in improving infrastructure are; investing in infrastructural development, such as transportation power, road network, water supply among other can help reduce cost associated with transportation and other expenses passed down to consumers.
Enhancing agricultural productivity. Promoting and supporting the agricultural sector can reduce food prices and enhance food security. Improving farming techniques, access to quality irrigation systems are all strategies through which dependency can be reduced on imported goods.
Encouraging competition could be a tactics. Promoting competition in key sector such as telecommunications, banking, and energy to prevent monopolies and encourage market efficiency can help lower price for consumers.Control of inflation, implementation of effective monetary policies and fiscal measures to control inflation, increased wages and ensuring that wages and salaries keep pace with inflation can help improve people’s purchasing power and reduce the burden of high costs.
Developing effective social welfare programmes can provide a safety net for vulnerable populations, reducing the impact of high cost of living on those with limited financial resources.
In conclusion these are just comprehensive approach that addresses multiple aspect of the economy and society and if adopted by the government and relevant agencies, Nigerians can be saved from the bondage of high cost of living, the time this now!.
Hauwa’u is a 200-Level Student of Ahmadu Bello University, Zaria, Kaduna State and can be reached via: hauwaat@yahoo.com
Thank you