Power Rotation

…Spend nearly 16% monthly income on holiday

By Nkiruka Nnorom

A new study by WorldRemit, global payments company, has indicated that majority of Nigeria households spend 100 percent or more of their monthly income on Christmas.

Specifically, the study find that Nigerians spend 196 percent monthly income at Christmas and nearly one-fifth or 16 percent of annual income as holiday expense.

Like Nigeria, Mexico, Lebanon, Philippines, Cameroon, and Rwanda also spend 100 percent or more of monthly income on Christmas with several other countries spending more than 50 percent monthly income on Christmas.

Of the 14 countries observed, data showed Rwandans are most impacted by the disparity between average household income and holiday costs, spending 708 percent  of their monthly income and nearly 60 percent of their annual income on the holiday.

READ ALSO: Food insecurity ravages over 12m Nigerians in 16 Northern states — SWOFON

Meanwhile, Filipinos spend 257 percent of their monthly income on the holiday. In the region, Christmas celebrations begin in September and extend into January, making it challenging for many families to afford the basic costs of Christmas. Without remittances into countries like the Philippines, celebrating Christmas would be near impossible, the report said.

“More than 244 million people are classified as immigrants around the world and account for large percentages of populations in countries like the United States (14.4% of total population), UK (9%), Australia (30%) and Canada (21.5%).

During the holidays, immigrants and overseas foreign workers are often unable to celebrate with their families in-person, and find themselves working to support not only themselves, but also their families and communities back home.

“Christmas is one of the primary reasons immigrants and migrants send money back to their home country. Because of the high cost of coveted seasonal items, food, and the overall impact COVID-19 has had on supply chain and inflation, it is vital for remittance senders to be able to support those dearest to them by helping make Christmas a reality for their loved ones.

“For example, of the 14 countries observed that typically receive remittances, 10 spent more than 50 percent of their monthly household income on the holiday. A holiday that would be impossible without remittances, the season of giving becomes vital, where the world’s largest send markets typically only spend less than three percent of their annual income on the holiday,” it said.

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