Price hike

Reflections on inflation and our ineffective population

By Nusaiba Ibrahim Na’abba

The ongoing unexpected outrageous hike in prices of goods and services stringed by inflation is not all new to our survival in Nigeria as we’ve learnt the hard way to navigate through hurdles and thorns to manage our lives. Simply put, things are at the moment not falling apart but in their right places – exactly where we want them to be. And by extension, we are reaping the seeds our predecessors sowed.

Contextualizing the global outrage on inflation unveils how our population crises are highly influential to the inflation catastrophe we are recently experiencing in Nigeria. Conversations around our incapacitated population have always been cumbersome. People keep reproducing to demonstrate their selfish reasons and associating them with religion, even when they’re fully aware of their inability to cater for their needs – a lifetime debate. Due to cultural and religious reasons, overpopulation is always quite a sensitive issue. Religious gatherings, cultural discussions and even governmental activities deliberately skip them to avoid chaotic scenes.

For reasons best known to the Nigerian government, the census that was supposed to take place a year after President Buhari assumed office in 2016 was unfortunately not prioritized in the list of essential development activities. There wasn’t even a convincing explanation for why it did not occur. I buy that the President was out of office as he severely fought to regain sound health. Still, his deputy, Prof. Yemi Osibanjo, was acting President until he recovered. He also didn’t give it the much significance it deserves. The worth of a National Census isn’t that shabby to escape their radar, as it assumes an unchallenged role in catalyzing the development of every society and nation-building.

Well, as it stands, many international sources now place the Nigerian population to have surpassed 200 million. But, referring to our precedents, the past administrations were unwilling to manage rapid population increase by corroborating it with needed economic, financial and health opportunities, among others. Instead, they were more or less obsessed with starting gigantic projects to leave them halfway done when leaving offices. Regrettably, from budgets, policies and programs among myriad activities, the population is often not carefully factored in.

At this point, explaining the statistical representations of our ailing population is almost unnecessary, especially since we are gradually failing to comprehend the magnitude of our plight in statistical terms. Presently, there exists a colossal number of youths that are desperately seeking jobs. Not only that, they are unemployed. Some are drug addicts, miscreants, and even kidnappers and whatnot. Their realm also includes people still hopeful for job opportunities, including a handful employed but in deep struggles, as they continue to shoulder countless responsibilities. This fraction is the largest among the demography of our country and, sadly, the most ineffective.

Then we have children, who contribute a fair share to the general population. A disturbing figure is that of out-of-school children due to their being part of the lower class and a lot who are quadrupling in number as insecurity is not slowing down in forcing them out of their communities. Visibly, most of them embrace street hawking and begging while others aimlessly litter the streets and little girls into forced labour. Picturing our population from a pie sketch, we also have the elderly, many of whom have delivered relentless service to the nation but have only been rewarded unkempt wretched feet as they search for their legitimate hard-earned pensions. And I don’t forget that we have People Living with Disabilities (PLWDs) who wallow in poverty. This is a fair elucidation of Nigeria’s population pie sketch.

Indeed, how inflation is ripping us apart in this country is an incredibly devastating experience. Development activities here have always journeyed long, and even more terrifying is that slow processes in everything aren’t much valued in today’s fast-paced world. As frightening as it appears, the race to the 2023 general elections is already painting a horrible scene for us. The primary elections recently concluded with alleged countless irregularities and corruption aren’t appealing. Hence, it becomes challenging to collate one’s thoughts regarding how life will likely be as we fight to forge ahead.

In a way, this current plight provokes the young minds who are already out of viable options to embark on deadly voyages to Europe. They risk their lives in search of a better life there. It is terrifying to know that the number of youths clamoring for these voyages includes graduates and those earning petty stipends and are well conscious of the dangers involved. However, they aren’t blameworthy for viewing their lives from angles of their responsibilities.

Many optimists, including myself, are hopeful about Nigeria’s transformation for the best. But, until alternative routes to utilizing our teeming population for efficient development are incurred, we’ll keep chasing the uncertain light at the end of the tunnel. Nigeria is behind schedule on capitalizing on effective strategies to breed an efficient population, opposing its self-anointed maxim of “no dey carry last”. We must reinvent this unfortunate wheel of inefficiency by adopting a knowledge-based economy model to harness the enormous potential of our massive population for the best.

Nusaiba Ibrahim Na’abba is a master’s student from the Department of Mass Communication, BUK. She is a freelance writer and researcher. She can be reached via nusaibaibrahim66@gmail.com.

Rising food prices in northern Nigeria

By Sumayyah Auwal Ishaq

Nigeria seems to be plunging into a new dimension of economic crisis as food inflation reached a new high in most of the northern region, hitherto considered the country’s food basket.

The prices of essential food items are rising astronomically, preventing many Nigerians from feeding adequately. The rising cost affects domestic and imported foods like rice, beans, tomatoes, pepper, onion, flour, egg, oils, bread, plantain, fruits, frozen foods, and yam. These staple foods that Nigerians consume daily. This coincides with a season of national economic downturn, high inflation, and depreciation of the national currency. 

A random survey conducted across major markets in Kaduna and other parts of the country by The Daily Reality this week has shown that a 50 kilogram (kg) of foreign rice sold for N27, 000 earlier in the year, sells for N34000 today. The same size of local rice sold for N19, 000 between January and April now sells between N25,000 and 28,000, depending on the brand.

The cost of beans, regarded as a meal for the lower class, is anything but disheartening. Presently, a bag of 50kg beans that previously sold for N27,000 rose to N37,000 and now sells for N47,000.

In the Bakin Dogo market, the prices of tomatoes, sweet potato, Irish potato, and onions have all doubled, making it difficult for many Nigerians. In February this year, one litre (or bottle) of palm oil was N400, while five litters was N2,000. But now, 1 litre of palm oil went up to N900; 5ltrs was N2,000. And as of September, 1ltr and five litres of palm oil had gone up to N700 and N3,500. A bottle of palm oil sold for between N250 and N300 is N800. A bag of onions is N24, 000, as against N12, 500 it sold in March this year.

Items whose prices have shot up are endless. Beyond food items, groceries, transport fare, school fees, house rent, cooking gas, and everything that concerns a man’s livelihood has seen their prices skyrocket, much to the chagrin of Nigerians, particularly low- and fixed-income earners.

Telecom firms write NCC, propose new prices for calls and data

By Ibrahim Nasidi Saal

Nigerians may have to pay more for calls and data as telecommunication companies proposed a new tariff increase of 40 per cent. They made this known in a letter sent to the Nigerian Communications Commission titled, ‘Impact of the Economic and Security Issues on the Telecommunications Sector’.

The telecommunications companies wrote the letter under the aegis of the Association of Licensed Telecommunication Operators of Nigeria to the NCC.

According to The Daily Reality sources, the Telcos have proposed the price floor of calls will increase from N6.4 to N8.95 while the price cap of SMS will increase from N4 to N5.61.

The Telcos noted that the increase in energy costs had impacted their operating expenses by 35 per cent, Our Source added. 

The Telcos, which include MTN, Glo, Airtel, and 9mobile, also said that the introduction of the recent excise duty of five per cent on telecom services had further increased the burden of multiple taxes and levies on the industry. 

The letter read in part:

 “As the commission may be aware, the power sector, under the supervision of its Nigerian Electricity Regulatory Commission of the power sector in November 2020, undertook a review of electricity tariffs to cater for the economic headwinds reported above.

“In view of the foregoing, ALTON considers it expedient for the telecommunications sector to undergo periodic cost adjustments through the commission’s intervention in order to minimise the impact of the challenging economic issues faced by our members.

“Upward review of the price determination for voice and data and SMS. Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.

“With respect to voice an SMS cost, ALTON respectfully requests the commission to consider a mark-up approach to address the upward price adjustment desirable for the industry. We have enclosed herein and marked as ‘Annexure 1’our proposal in that regard.

“For data services, we wish to request that the commission implements the recommendations in the August 2020 KPMG report on the determination of cost-based pricing for wholesale and retail broadband service in Nigeria. Excerpts from the report, are attached and marked ‘Annexure 2’ to provide a further illustration.

“In implementing the said recommendations, however, we recommend that the 40 per cent increase in the cost of doing business be factored in to arrive at a cost price per GB in view of the current economic situation.”