Shoppers Defy Cost-of-Living Crisis, Throng Markets Ahead of Yuletide
CHIGOZIE AMADI
Despite the lingering cost-of-living crisis in the country, shoppers are flooding markets and shopping centres, in preparation for the yuletide season.
THISDAY’s findings revealed that Nigerians are undeterred by economic challenges as they stock up on festive essentials. The yuletide season, traditionally a time of increased spending, has seen Nigerians defy current economic odds, splurging on gifts, decorations, and festive essentials. Owners of market stalls and stores reported brisk sales, with traders optimistic about a bumper holiday season.
From popular markets like Balogun in Lagos to shopping malls in Abuja, traders and retailers report increased sales of essential commodities such as textiles, rice, meat, vegetables, seasonings, vegetable oil, varieties of gift items, and hampers, in the past few days.
Speaking with THISDAY, a foodstuff trader at Mile 12 market, Ms. Aminat Babatunde said, “Truly, I didn’t expect business to be good. But despite the economic crunch, I’m shocked at the level of patronage. With the way things are in this country, and the high cost of rice which is now N95,000 for Caprice, I was expecting slow sales, but to my surprise, my stall has been flooded with customers non-stop. People are buying rice, beans, garri, and groundnut oil in large quantities.
““Instead, they’re willing to spend a bit more to ensure they have a wonderful celebration with their loved ones. I’ve had to restock my supplies multiple times to keep up with the demand. It’s a welcome challenge, but I’m grateful for the unexpected boost in sales.”
“I know things are tough, but Christmas is a time for joy and giving,” said Mrs Nneoma Okoro, a shopper at the popular Balogun Market in Lagos. “I’m trying to make the most of it, even on a budget.
“We just have to thank God for surviving the year of T-pain. Christmas is just that one opportunity we can at least breathe for once this year, and not think about all our problems.”
“Business has been good, despite the economy,” said Alhaja Moimot Usman, a textile merchant at Oshodi. “People are still buying, even if they’re being more careful with their spending.
“Now they patronise us more because readymade clothes are currently more expensive, especially for a large family. I am not surprised at all. It is expected. Even though textile has also become more expensive unlike how it was before, it is still cheaper than readymade because we have different grades and quality that fit into everybody’s pocket.”
The surge in holiday spending has been attributed to a combination of factors, including the desire for festive cheer, amongst others.
Speaking with THISDAY, economic expert, and Chief Strategist, The Whispers Pls, Dr. Wisdom Peters, said, “The surge in demand for foodstuff during the festive period in Nigeria is a classic example of the ‘income effect’ versus the ‘substitution effect’.
“While the cost-of-living crisis would normally lead to a reduction in consumption, the festive period creates a unique scenario where consumers are willing to prioritise spending on essential items, such as food.
“In this case, the income effect, which refers to the change in consumption patterns in response to changes in income, is outweighed by the cultural and social significance of the festive period.
“Consumers are willing to allocate a larger portion of their budget to food and other festive expenses, even if it means reducing spending on other non-essential items.
“Furthermore, the high patronage of foodstuff traders can be attributed to the low price elasticity of demand for food items, particularly during the festive period. This means that consumers are less responsive to price changes and are more likely to continue buying food items even if prices increase.
“From a macroeconomic perspective, the increased demand for foodstuffs during the festive period can have positive implications for the economy, particularly for small-scale traders and farmers who rely on the festive season to boost their sales.
“However, it also highlights the need for policymakers to address the underlying structural issues driving the cost-of-living crisis, such as inflation, exchange rate volatility, and supply chain disruptions.
“To mitigate the impact of the cost-of-living crisis on consumers, policymakers could consider implementing targeted interventions, such as subsidies on essential food items or cash transfers to vulnerable households.
“Additionally, investing in agricultural productivity and improving supply chain efficiency could help reduce food prices and increase access to affordable food for all Nigerians.”
