As global inflation continues to surge, Nigerians living in various parts of the world are navigating rising living costs with resourcefulness and determination.
From the United States to Canada and even the Maldives, the escalating prices of essential goods and services have significantly impacted daily lives, prompting innovative survival strategies.
Coping with Rising Costs
In the United States, Rachel, a beautician who relocated in 2020, describes the steep rise in grocery prices. She notes that the cost of 18 eggs has jumped from $1.50–$2.00 to $8.00—a staggering 300%–400% increase.
Similarly, other essentials like water and detergent have doubled or tripled in price, putting pressure on household budgets.
“Shopping for $200 now barely lasts two weeks, compared to two months in 2020,” Rachel says, highlighting the strain inflation has placed on her finances.
Fuel costs have also surged, with prices now averaging $3.00–$4.00 per gallon compared to $1.50–$1.60 just a few years ago, further compounding the financial burden.
In response, Rachel and others like her are prioritizing essentials, cutting discretionary spending, and seeking discounts wherever possible.
Adjusting Priorities and Budgeting
Mrs. Joy, a nurse in the U.S., emphasizes the importance of buying only necessities and adopting cost-saving measures such as bulk purchasing and using coupons.
For instance, the price of a bag of rice has risen from $48 to nearly $80, making bulk buying an essential strategy for reducing overall expenses.
Joy also advises limiting dining out, as restaurant prices have soared. A buffet meal that once cost $8 now ranges between $12 and $13—a significant 50%–62.5% increase.
Navigating Inflation in Other Countries
Dr. Ehugbo, a doctor in the Maldives, notes that while his salary remains unaffected by inflation, converting his earnings to foreign currencies has become less favorable.
Additionally, he now sends more money home to support family members, as the rising cost of living in Nigeria has outpaced his earlier remittances.
In Canada, Mr. Michael reports that petrol prices have skyrocketed from $0.45 per unit to $1.50, an increase of over 233%.
Despite these challenges, his increasing income has helped cushion the effects of inflation, though he acknowledges the strain on single-income households.
Long-Term Financial Strategies
To cope with long-term inflationary pressures, many Nigerians abroad are turning to financial strategies like refinancing mortgages to lower interest rates. Joy, for example, secured a 2.9% rate during the pandemic, significantly reducing her monthly payments.
Other measures include switching to energy-efficient appliances, exploring cheaper mobile plans, and taking on additional jobs or shifts to supplement income. Joy emphasizes that, for many, weekends are no longer for rest but for earning extra money to keep up with rising expenses.
Impact on Remittances
The rising cost of living abroad is also affecting the funds Nigerians send home. Diaspora remittances, a vital source of foreign exchange for Nigeria, have grown from $200 million to $600 million monthly, according to the Central Bank of Nigeria (CBN). However, inflation may hinder Nigerians abroad from maintaining their contribution levels.
CBN policies like the Non-Resident Nigerian Ordinary Account (NRNOA) and Non-Resident Nigerian Investment Account (NRNIA) aim to encourage remittances by providing opportunities to invest in Nigeria. Yet, the squeeze on disposable income could pose challenges to these initiatives.
Resilience Amid Challenges
Despite the difficulties, Nigerians abroad are demonstrating remarkable resilience and adaptability. Their efforts to navigate inflation while supporting families back home underscore the strength of the diaspora community and its significant role in Nigeria’s economic landscape.
