The cost-of-living crisis in Nigeria is deepening as soaring prices of fuel, food and other basic goods continue to erode the purchasing power of households and businesses.

Across the country, workers and families are complaining that their incomes have failed to keep pace with the rising cost of living, forcing many to cut back on essential expenses.

For households, the pressure is showing in smaller food purchases, higher transportation costs and reduced spending on healthcare, education and other necessities. Businesses, particularly micro, small and medium enterprises (MSMEs), are also under pressure from rising energy, transportation, raw material and operating costs, even as consumers reduce their spending.

The situation worsened in the past 72 hours, with petrol selling for about N1,350 per litre in Lagos and above N1,400 in some parts of northern Nigeria.

The sharp decline in purchasing power was highlighted by social commentator, Peter Olawumi, who compared what N10,000 could buy in cooking gas at different periods.

According to him, N10,000 bought 40kg of cooking gas in 2011, 37kg in 2015, 29.4kg in 2019, 11.8kg in 2023 and only 6.9kg in 2026.

He also pointed to the rising price of Coca-Cola, saying a bottle that sold for N100 in 2015 now costs about N500.

“With all the noise about economic reforms of the Buhari and Tinubu administrations, have people’s salaries been multiplied five fold?” he asked.

Olawumi said the same trend was reflected in the price of Close-Up toothpaste, which he said rose from N200 in 2015 to about N1,400 in 2026.

“Prices cannot increase by over 600 per cent while income and salaries stay the same,” he said.

The widening gap between earnings and prices is also evident in the cost of petrol, which has become one of the biggest expenses for households and businesses.

Petrol, which sold for N75 per litre under former President Olusegun Obasanjo and N65 under the administration of late President Umaru Musa Yar’Adua, rose to about N250 per litre by the end of former President Muhammadu Buhari’s tenure.

It now sells for between N1,300 and N1,400 per litre in many parts of the country, with prices higher in some areas.

For workers whose incomes have not increased at the same pace, the impact has been severe. A worker, Olabode Owoyemi, said he earned N130,000 in 2023, which he valued at about $433 at the time, when petrol sold for around N200 per litre.

Today, he earns N300,000 but puts its dollar value at about $200, while petrol sells for around N1,300 per litre.

The rise in his nominal salary, he said, had therefore failed to translate into a corresponding improvement in his standard of living.

Another Nigerian, Ayo Deji, illustrated the impact of rising petrol prices by comparing what N50,000 could buy previously with what it buys today.

According to him, N50,000 previously bought about 263 litres of petrol but now buys only about 39 litres.

“No amount of frugality can prepare anyone for that shock,” he lamented.

The rising cost of fuel is not limited to motorists. Nigerians who do not own cars are also affected as transport operators pass higher fuel, maintenance and other costs on to commuters.

The increased cost of transporting farm produce and manufactured goods also feeds into the prices consumers pay in markets and shops.

Those that increase their prices risk losing customers, while those that keep prices unchanged face the danger of operating at a loss.

Manufacturers are particularly exposed to high energy costs, with many relying on diesel-powered generators because of unreliable electricity supply.

Traders and service providers are also contending with higher logistics and other operating expenses.

Beyond the immediate cost-of-living crisis, concerns are growing over the disparity between the earnings of top public office holders and ordinary workers.

Olawumi claimed that a professor who spent years climbing the academic ladder could require about 129 years to earn what a senator could make in four years.

He cited monthly earnings of about N21 million for a senator compared with about N650,000 for a professor.

At N21 million monthly, a senator would earn more than N1 billion in four years, while a professor earning N650,000 monthly would receive N31.2 million over the same period.

The figures have further fuelled concerns about inequality at a time when millions of households are struggling to meet basic needs.

Some Nigerians have also raised concerns about the country’s health outcomes, including low life expectancy and the relatively small share of the national budget allocated to healthcare.

They argued that economic reforms should ultimately be measured by their effect on the lives of ordinary Nigerians and not only by improvements in macroeconomic indicators.

Although the Federal Government has continued to defend its economic reforms and urged Nigerians to be patient as the measures take effect, many households and businesses say they need immediate relief.

They are demanding measurable and time-bound interventions, including a three-month emergency programme to reduce transport and food costs.

They also called for the expansion of targeted cash support to vulnerable households within six months and a review of wages and income support within 90 days to reflect current living costs.

For businesses, they want the government to reduce the cost of electricity and alternative energy within six months, provide affordable single-digit-interest financing for MSMEs within 90 days and remove or suspend unnecessary levies and charges that increase production and distribution costs.

For households, they said the immediate priorities should be the stabilisation of fuel and transport costs, protection of food affordability and expansion of healthcare support.

Businesses, they added, need lower energy and logistics costs, cheaper credit and a more predictable tax environment.

They also called on the government to publish quarterly progress reports on the measures, allowing Nigerians to track what has been achieved, what remains outstanding and when further relief will be delivered.

Meanwhile, Chief Economist and Partner, SPM Professional, Dr Paul Alaje, said Nigeria’s economic position had deteriorated significantly over the years.

According to him, Nigeria’s GDP was about $500 billion before 2015 but had fallen to $199 billion, while per capita income had dropped from about $3,000 to $1,000.

“Our economy used to be the largest in Africa, today, we’re number five,” he lamented. (The Sun)