Before now, Christmas for Mr. Sanmi Olatunde, a staffer of an Ibadan-based private organisation, used to be a funfair with lots of sharing and caring for family members, friends, and relatives.
However, the 2024 Christmas was quietly celebrated due to Olatunde’s low economic purchasing power.
He reminisced what used to be, noting that the economy was challenging but for God’s grace.
Aside from the effects of global economic hardship, the nation’s economy also experienced some critical challenges in 2024.
Such challenges include high inflation rates, fiscal deficit, exchange rate depreciation, and high interest rates.
Others are the rising cost of food, the cost of operations and the challenging business environment.
Like many other Nigerians, Olatunde prayed and hoped the nation’s economy would be better in 2025 than the year under review.
“You know how high the prices of things are. I can remember this time last year. I know what I did for people, but in 2024, it is just God’s grace.
“There are so many things we can’t even get up to, but we are just trying to do our best. I don’t pray to experience anything like 2024 again,” he said.
However, he sounded optimistic as petrol prices per litre have started declining, hoping it would continue to have ripple effects on other goods and services.
“Yes, in fact, this December, I can see that prices of some items are coming down, but we hope that 2025 will be a year of better things.
“This is because I believe the moment fuel prices come down, other things will, definitely, come down.
“So, we are hoping that 2025 will be a better year than 2024,” Olatunde said.
Another respondent, a civil servant, Mr Olugbenga Adeyemi, said things were a little bit difficult and stressful in his family in 2024.
According to him, the family employed different coping techniques to adjust to the situation.
“We have adjusted to going out without a car.
“We now realise that it is not every time we need to go out with the car because of fuel,” Adeyemi said.
He, however, hoped the relief brought by the recent decline in petrol prices would not be short-lived.
According to him, the rate at which the price was increased cannot be the same rate at which it will be reduced.
Another respondent, Mrs Olajumoke Ogunmuyiwa, blessed God for making things easy for her despite the economic hardship.
“It is a delight to see petrol prices crashing, and I hope it will further reduce in the coming year for things to be better than 2024,” she said.
A financial consultant, Mr Adetunji Adepeju, said living costs in 2024, in terms of food prices, accommodation, housing and transportation, were outrageous.
“I will say this is caused by the fluctuating and increasing exchange rates, which has serious effects on oil prices, until recently when petrol prices started to come down.
“It’s good to buy petrol for N950 to N990 per litre compared to the earlier months.
“Unfortunately, the price of food has not come down.
“For those fond of eating rice, a 50 kg bag of rice, which should be sold for N50,000 is now sold at N105,000.
“But, again, for the common people like me, I will say, at least, the cost of garri and other few items came down between November and December,” Adepeju said.
The consultant noted things were generally tough in 2024, but with government policies, as captured in the budget, 2025 looked bright.
“The security situation is improving; some farmers are back to their farms, now having some crops available.
“By the middle or by the first quarter of 2025, some of the crops should have been harvested, thus food prices will come down.
“This is provided the traders and middlemen do not still go ahead with the way of just making things tough for people,” Adepeju said.
He said he was optimistic that petrol prices would still go down, reducing the cost of transportation and subsequently, food prices and other things.
The financial expert said things would improve if Nigerians were prudent and learnt to manage their finances.
Adepeju called for more transparency from state and local governments.
“For me, with the exchange rate projection of N1,500 to a dollar, and with an increase in the oil production to about 3.06 million barrels per day, we should fetch money into the federal accounts.
“If we have less corruption, or people are made to account for whatever comes to them, especially the state and local governments, many things should change positively.
“I appeal to the state and local governments to, please, do the needful, because the federal government, for one indication, has been trying to support the subnationals,” he said.
Adepeju, referring to the Borne State governor for acknowledging whatever came from the federal government, said South-West governors should do the same.
Another financial expert, Mr. Sola Famakinwa, observed that the economy had improved from its downward spiral early in the year.
He says some government policies and reforms from mid-2024 are game changers.
According to him, while the nation’s inflation rate has decreased in recent months, it’s still high.
“Its effect is not yet fully felt by most Nigerians as it has adversely affected every sector of the economy.
“With the low purchasing power, I will say that people are adjusting to the reality of the economy because of the kind of life many Nigerians live – we are adjusting ourselves,” Famakinwa said.
The expert observed the economy had now turned in the right direction, especially with the policies implemented in the last quarter of 2024.
“This will surely set a good tone for the first quarter of next year.
“If you look at the budget proposal that was presented; infrastructure and education were the priority of the federal government, which is at the bedrock of any economy that can bring progress to us as a nation.
“If the tax reform that the federal government has also put in place flies by the grace of God next year, most of the businesses will bounce back,” Famakinwa said.
By Ibukun Emiola, News Agency of Nigeria (NAN)
