As inflation rates soar worldwide, Nigerians living abroad are finding themselves at the crossroads of financial survival. Whether in the United States, Canada, or even the Maldives, the cost of living has escalated, leaving many with no choice but to adapt to new economic realities.
For Nigerians who have migrated in search of better opportunities, the changes in daily expenses can be overwhelming.
From grocery bills to fuel prices, the impact of inflation is being felt across the globe, but the strategies these individuals employ to cope reveal resilience, resourcefulness, and an unwavering determination to make ends meet.
In the United States, Ms. Rachel, a beautician who arrived in January 2020, describes how the prices of essential goods have skyrocketed in just five years.
She recalls a time when a pack of 18 eggs cost $1.50 to $2.00, but today, it is priced at $8.00. This represents a price increase of between 300% and 400%.
Similarly, the cost of water, which was once $2.00 to $3.00 for a 40-pack, has now jumped from $5.00 to $6.00. This is an increase of 100% to 200%.
Other common items, such as detergent and tissue paper, have also seen significant price increases, with detergent now costing almost $20.00 for a small cup, up from $7.00 to $8.00. This reflects an increase of 150% to 185%.
“The price hike goes for everything,” she says. “I literally got this cheaper a few months ago. It just keeps going up.”
For Nigerians like Rachel, the reality of inflation means stretching their budgets further. Even a grocery shop that would have lasted two months in 2020 now barely lasts two weeks.
“If I shop with $200 now, that’s not going to last me past two weeks,” she explains, emphasizing the difficulty in managing household expenses.
The sharp rise in fuel prices too adds another burden to daily life, with prices fluctuating between $3.00 and $4.00 per gallon. This marks an increase of about 100% from the $1.50 to $1.60 she paid when she first arrived.
In the face of rising costs, Nigerians living abroad are adopting new strategies to make ends meet. Mrs. Joy, a nurse in the United States, highlights the importance of prioritizing needs over wants.
“You just have to buy the necessary things that you need for your house,” she advises, emphasizing that discretionary spending must be minimized.
This mindset of focusing on essential goods has been a significant part of her strategy for managing her household’s finances.
Joy also notes the importance of bulk buying.
“I used to buy rice for like $48 a bag, but now, rice is almost $80 per bag,” she says. This reflects a price increase of over 66%.
“I used to buy rice for like $48 a bag, but now, rice is almost $80 per bag,” she says. This reflects a price increase of over 66%.
Despite the increase, she continues to purchase in bulk to save money over time. She also avoids branded items in favor of unbranded alternatives, which can often be just as effective but less expensive.
For Nigerians abroad, the principle of saving wherever possible is crucial. Joy suggests using coupons to save money on everyday expenses, particularly for dining out. She points out that inflation has made eating out much more expensive.
A buffet meal that used to cost $8 now costs $12 to $13, a significant rise of 50% to 62.5% that many Nigerians find hard to justify.
“I advise people to eat at home,” she says. “If you have kids, you can save from coupons. Even as an adult, you can save on coupons if you are good at it.”
To make up for the increased cost of living, many Nigerians abroad have had to adjust their working patterns. Dr. Ehugbo, a doctor living in the Maldives, mentions how his salary is not directly affected by inflation due to local regulations.
However, he does face challenges when converting his salary into foreign currency.
“I get paid in the local currency, so it seems like I am losing money when I compare it with how much I used to be able to change my money to,” he says.
Furthermore, he has had to send more money home to support family members, as the amount he used to send no longer suffices.
“I have had to send more money home because the 50-80 USD monthly before just doesn’t cut it anymore,” he explains.
Like many Nigerians abroad, he is forced to send additional funds due to rising living costs both at home and abroad.
Similarly, Mr. Michael, a resident of Canada, has noticed a significant change in fuel prices. The price of petrol has increased dramatically from $0.45 per unit to $1.50 per unit, a price hike of over 233%. “The price skyrocketed,” he says.
“This increase is pretty much felt across the board on foodstuffs and other basic commodities.”
Despite these challenges, Michael acknowledges that his steadily increasing income has helped mitigate the effects of inflation, making it easier for him to adapt.
However, he stresses that for someone solely responsible for a household, the rising cost of living would be far more difficult to manage.
Long-term solutions: strategic financial planning
In the face of these challenges, many Nigerians abroad are considering long-term solutions to cope with inflation. Joy, for example, has refinanced her house, taking advantage of lower interest rates during the pandemic.
“Interest rates were around 4%, but I finally got 2.9%, which is good,” she says, explaining that such strategies can help ease the financial burden over time.
Refinancing, she notes, is one way to reduce monthly payments and alleviate some of the pressure caused by rising costs.
Additionally, Joy has taken steps to reduce her utility bills by switching to energy-efficient bulbs and considering cheaper mobile phone plans.
She points out that services like Simple Mobile can offer the same quality at a much lower price than major carriers like AT&T.
These small adjustments can lead to significant savings over time, helping to offset the effects of inflation.
For those in countries where additional work is necessary, picking up extra shifts or even a second job has become a common strategy.
“People that used to think that Saturday is a holiday or weekends are holidays no longer think that,” says Mrs. Joy. “You can’t just sit in the house and money comes. It can’t happen.”
Many Nigerians abroad have realized that in order to keep up with rising costs, they must be proactive in seeking additional income.