Counting the Costs; Rising Prices and Insecurity in Nigeria

Despite the data on the downward trend in the country’s inflation figures, prices of food commodities have continued to rise. Some with as much as a hundred per cent increase. Getting by has become ever more difficult especially for the more than 80 million Nigerians who are below the poverty line. In his October 1, 2021 speech, the President again mentioned that it is realizable to lift 100 million Nigerians out of poverty but many Nigerians still contend with extreme poverty amid much Federal Government’s poverty alleviation schemes. It could get worse in 2022 with the planned complete removal of petrol subsidy even as the Central Bank of Nigeria (CBN) had projected a single-digit inflation figure by mid-2022.

Coping mechanisms is something Nigerians know all too well. Irrespective of the state of the economy, they find ways to cushion its effects. Many have ditched brand consciousness and gone for cheaper alternatives when shopping. Others have taken up extra employment or set up side businesses to get by. For some, it’s all about withdrawing past savings and living on them. Irrespective of the coping mechanism employed, one phenomenon that cuts across is that individuals and families have lowered consumption. The general reaction to rising prices has been to cut back on food, clothing and entertainment expenses. This can have negative effects especially in health, nutrition and even quality of education for children.

Not being able to keep up with needs can affect mental health; many have also reported that financial pressures are causing extreme difficulties in their lives. For the country, inflation has decreased international competitiveness. It has been reported that foreign direct investment in the country fell to its lowest in 11 years in 2021. Nigeria also currently ranks 131^st out of 190 countries on ease of doing business. All these continue to exert a significant negative impact on economic growth which is further hampered by recurrent banditry and kidnappings.

Between January and August 2021 alone, there have been more than 100 cases of kidnapping and attacks on mostly rural communities and settlements. Northwest and Northcentral are the worst hit while we still battle terrorism in the Northeast. There is also separatist unrest in the Southeast where more than 150 Police officers and civilians have been killed in 2021 alone. Abductions have become prevalent, more than 1000 people have been abducted from schools in 2021, many released after ransoms were paid. It is unprecedented in the country’s existence.

The Federal Government has spent more than 8 trillion Naira in the past seven years yet terrorists and bandits have so far managed to resist military operations. Beyond acquiring military gadgets, the government must clamp down on corruption at all levels, it must also improve intelligence gathering and policy execution.

Long-term strategic investments in human and infrastructural development must also be consolidated. The Local Governments are essential to the wellbeing of the people, therefore, there should be concerted efforts to strengthen local engagements where it matters.

The realities of inflation and insecurity have heightened hostility towards a government already accused of grossly underperforming. The only means of regaining favourable standing is through the pursuance of policies that can bring about positive and timely change.