By Bilesanmi Olalekan

Nigerians are facing an increasingly dire cost-of-living crisis as the prices of goods and services continue to rise across multiple sectors, despite government’s claim that prices are coming down.

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From essential commodities to digital services, the impact of inflation and foreign exchange fluctuations has left many households struggling to keep up with their expenses.

The prices of basic food items, for instance, have surged significantly. A 50kg bag of honey beans (oloyin) now costs ₦90,000, up from ₦56,000, while a 50kg bag of white garri has risen from ₦30,000 to ₦75,000. A bag of pepper which used to be between ₦50,000 and N60,000 is now ₦150,000.

Proteins such as beef and goat meat have also seen price hikes of 40%–60%, putting additional strain on family budgets.

Beyond food, the rising cost of digital services and technology has added to the financial burden. Microsoft recently announced a 44% price increase for its Microsoft 365 Personal subscription, moving from ₦49,999 per year to ₦71,999 starting February 14, 2025. StarTimes, a pay-TV provider, also adjusted its rates by 15% in 2024.

Similarly, Pay-TV operator MultiChoice Nigeria recently announced a price adjustment across its DStv and GOtv packages, with the new rates set to take effect from March 1, 2025.

The company emphasized that the decision was necessary to remain operational amid rising inflation and economic instability.

However, the socioeconomic conditions are also affecting telecommunications companies, which have lost billions of dollars to forex losses following the instability of the naira. In 2024, MTN recorded a ₦656 billion loss while Airtel recorded significant losses same year.

All the mobile network operators have jacked their rates up. Under the revised pricing, the MTN 1.8GB monthly plan now costs N1,500, replacing the previous 1.5GB plan that was priced at N1,000. The 20GB plan has increased to N7,500 from N5,500.

The 15GB plan has increased from N4,500 to N6,500, while the 20GB plan now costs N7,500, up from N5,500.

Larger data bundles have seen even steeper increases.

The 1.5 terabyte 90-day plan has risen from N150,000 to N240,000, and the 600GB 90-day plan is now priced at N120,000, up from N75,000.

Under this new pricing regime, Airtel has replaced its cheapest monthly data plan of 1.2GB plan for N1,000 with 2GB for N1,500. Other changes include 3GB for N2,000 (from 1.5GB at N1,200), 4GB for N2,500 (formerly 3GB at N1,500), and 8GB for N3,000 (formerly 4.5GB at N2,000).

The Nigerian Breweries are not left out in the price increase. The increase, according to the company, is deemed necessary to offset the impact of increased operational costs.

“The decision is in response to rising production costs, driven by a combination of factors, including inflation and naira depreciation.The decision to increase is due to the rising cost of production and foreign exchange challenges”.

Nigerian Breweries is the producer of Star lager beer, Gulder lager beer, Legend Extra Stout, Heineken lager beer, Life Continental lager, Ace Passion, Star Lite and Star Radler, 33 Export lager beer, Williams dark ale, Turbo Kings dark ale, More lager beer, Star Radler Red Fruits, and Desperados, amongst others.

The same with International Breweries, producers of Trophy, Trophy Stout, Hero Lager, Castle Lite, Budweiser and Flying Fish have all increased their rates.

Household appliances like air conditioners are virtually out of reach of the so-called elite.
Unlike before, LG, SAMSUNG HISENCE 1,1.1/2 horsepower was between ₦150,000/₦210,000, it is now between ₦380,000 and ₦445,000.

Panasonic is far higher than the other prices.

One of the distributors who prefers to be anonymous claimed consumers no longer buy it because of its prices, making them to want to stop accepting the products.” We major distributors are thinking of making representation to the headquarters in Japan to either reduce the prices or make an alternative to it, just like LG is presently doing”.

Manual Washing machine used to be ₦156,000 is presently being sold for ₦255, 000 while the automatic version goes as much ₦550,000 instead of ₦320,000 before now.

Ox standing fan-medium goes for ₦100,000 now instead of ₦66,000. The small version goes for ₦70,000 instead of ₦42,000.

While many consumers have expressed frustration, the price increase aligns with historical trends.
These adjustments reflect broader economic realities rather than arbitrary decisions by service providers.
Businesses across Nigeria, not just in the entertainment sector, are struggling to balance operational costs while staying profitable.

Rising inflation, the depreciation of the naira, and increased production costs have affected multiple industries, making price adjustments inevitable.

Instead of solely criticizing companies like telecom operators, a broader conversation is needed about Nigeria’s economic policies, inflation control, and business-friendly regulations. If the economic situation stabilizes, service providers may not need frequent price reviews.

As the cost-of-living crisis deepens, both businesses and consumers must navigate these challenging economic times with resilience.

The need for long-term solutions to inflation and economic instability has never been more urgent.

Vanguard News