As the cost of living continues to rise, Nigerians allocated more of their budgets to streaming and cable TV services in January, according to a report by SBM Intelligence released recently.
The development reflects a shift towards digital entertainment despite rising costs. This coincides with the country’s internet consumption surpassing one million terabytes, driven by increased demand for streaming and online platforms, despite a 50 per cent hike in data tariffs.
Daily Sun learnt that inflation and high living costs are now forcing many Nigerians to reconsider their entertainment budgets, with some opting for free or shared streaming services.
Furthermore, food prices remain a pressing concern. Although some food prices dropped due to market adjustments, SBM Intelligence warns that food inflation could persist due to reduced agricultural output, high logistics costs and insecurity in food producing regions.
According to the report titled; Price of Everything: Telecoms Offer Relief Amidst Nigeria’s Inflation Storm, the price of curry (a 25g jar), a food ingredient, was the fastest-rising in its database, recording a 177 per cent increase over the past year, followed by sanitary pad (144 per cent) and noodles (Indomie Super Pack) with 91 per cent.
Aside from sanitary pads and petrol, all the other items in the top 10 are edible, reinforcing its theory that Nigerians are being squeezed tightest at the dining table.
“However, there were some price reductions for items such as water and salt. The prices of data packages across the four major mobile networks and a full-size chicken remained flat.
The biggest increases occurred in both the budget and premium categorie,s with a mobile Netflix plan seeing a 42 per cent increase, followed by a StarTimes Classic plan (37.4 per cent) and a DStv Premium (33.7 per cent) subscription”, it said.
The report further noted that these entertainment packages saw a 28 per cent increase over the last two years, a significant jump but lower than the headline inflation rate.
“While items across the food, groceries and entertainment sectors rose, the telecommunication sector retained
prices despite high inflationary pressures, weakening their financial performance”, it said.
In its outlook, the geo-political research and strategic communication firm noted that with Nigeria having experienced significant food inflation in recent years, driven by factors like insecurity, transportation costs, and currency devaluation, telecom operators have also faced rising operational costs, leading to tariff adjustments and increased data prices.
It noted that however, the extent of these increases is lower compared to food and entertainment prices.
“Despite extensive negative commentary, the current tariff hike does not crack the Top 10 of the Price of Everything Index, suggesting that inflation within the wider economy remains ever more resilient.
The recent increase in telecom prices in Nigeria is expected to contribute to rising inflation but not as much as food,
entertainment and other sectors. Food prices will continue upward as domestic food production levels are expected to
decline in 2025.
In recent years, persistent insecurity, supply chain disruptions, climate change, elevated energy prices, floods, weaker naira, and high farm input costs have reduced the agricultural sector’s capacity to grow above three per cent”, it said.
A recent Farming Early Warning System Network report suggests an impending deterioration in food security from November 2024 through May 2025, driven primarily by suboptimal harvest yields.
This deterioration indicates that food production may decline unless urgent steps are taken to boost production and provide Nigerians with respite, in addition to palliatives and
import waivers.
Although the naira has been stable in the foreign exchange market since December, sustainability is key.
A relatively stable naira, supported by CBN interventions and improved FX liquidity, will help reduce imported inflation.
Increased food production, potentially due to government initiatives and improved security in agricultural regions, could ease food price pressures.
“The impact of fuel subsidy removal will continue to be felt in 2025. However, increased domestic refining capacity, particularly with the Dangote Refinery, could lower fuel prices and reduce inflationary pressures.
While the federal government has implemented monetary policy tightening and exchange rate adjustment measures, these efforts have yet to yield significant results. Without addressing the root causes of inflation—such as insecurity, supply chain inefficiencies, and climate-related challenges—the inflationary trend will likely persist, posing a continued threat to Nigeria’s economic stability and social well-being,”, SBM Intelligence concluded.
The inflationary crisis in Nigeria has significantly impacted the cost of living, reducing purchasing power and exacerbating poverty levels.
The sharp increases in essential commodity prices, particularly food, highlight the urgent need for targeted
policy responses to stabilise prices and enhance economic resilience.
While the government’s monetary and fiscal interventions have attempted to curb inflation, their effectiveness remains limited due to persistent structural challenges.
Addressing the root causes of inflation requires a holistic approach, including
securing agricultural supply chains, stabilising the exchange rate, and implementing policies that foster economic growth.
As Nigeria navigates this inflationary environment, stakeholders—including policymakers, businesses, and development partners—must collaborate to develop long-term solutions that ensure economic stability.
Without decisive action, the cost-of-living crisis could deepen, further straining households and businesses while hindering overall economic progress.
Food prices in Nigeria are expected to
continue rising in 2025, driven by declining domestic food production, insecurity, and climate change, posing a significant threat to economic stability and social well-being