Hello Everyone. It feels good to be back. Hope you all had a great weekend? Well, the weekend over here was sort of on a low, especially for startups. Most Nigerians seem to be finding it hard to get into the festive mood. There’s been chants of “Bad Market, Worst Holiday Season Ever,” and so on. Here’s how My StartupsVibes Weekend Adventure went.
Over the weekend, I had a mix of fun and chill time. On Friday night, I went to the UpBeat Festival launch in Lagos, where there was lots of music and good vibes, but the event had a low turnout of people despite the quality of the show and performers. Why? Keep reading.
The next day, Saturday, I stayed home, read a bit of a new book, and spent time on the internet looking at stuff about Startups (new businesses). I also tried to share updates about the Startups Space on Twitter with my friend Paul, but it was a bit tricky.
On Sunday, Paul and I decided to go to the market. It wasn’t just about buying things; it was more like an adventure to see what the market was like. We walked around, checked out different stalls, and talked to the people selling things. It was cool to be part of the busy market scene and feel the energy of the city.
So, my weekend was a mix of enjoying events, relaxing at home, learning about startups, and exploring the lively market.
It’s the third week in December, the period when Nigerians usually gear up for a month of festivities, travel, and all-around good vibes. We call it “Detty December,” and it’s a big deal! But this year, the party mood is taking a hit because of some not-so-great economic news.
How did we get here?
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Fueling the Woes: Pump Prices on the Rise
So, the Federal Government decided to make May 2023 memorable by announcing a fancy term called “the removal of fuel subsidy.” Translation: petrol prices went through the roof! Now, filling up your tank feels like paying for a ticket to a Wizkid or Burna Boy VIP concert. It went from less than N200 to a whopping N617 per litre at NNPC outlets, and regular fuel stations are charging between N620 and N700. Ouch!
What did it lead to?
Inflation: The Grinch That Stole Yuletide Joy
The ripple effect? A surge in the cost of living hitting us like a ton of bricks. Imagine your favorite Christmas jollof rice now costing 70% more, transportation becoming a luxury, and even your beloved suya taking a financial detour. The National Bureau of Statistics (NBS) says the inflation rate is playing naughty too, jumping to 28.20% in November 2023. Food prices are the culprits, leading the inflation parade at 32.84%.
Who got affected?
Folks Feeling the Pinch: Yuletide Plans in Jeopardy
Meet Festus Iheanacho, a civil servant, who usually road-trips from Abuja to Enugu for Christmas. This year, he’s stuck, worried about the skyrocketing fuel cost. Mrs. Faith Okoli won’t be traveling either. Her kids’ school fees decided to do a sprint, nearly doubling. Ademola Olamilekan has been jet-setting to Lagos for seven years straight, but this year, he’s biting the bullet despite crazy air ticket prices. Talk about dedication!
Food Frustrations: The Market is Not Smiling
A trip to Corner Bus-Stop Local Market in Sangotedo Lagos spills the beans – a bag of rice went from N36,000 to N64,000, and the quantity of tomato and pepper is doing its greatest fall as against its best rocket impression in price. Shoppers are not pleased. One resident bemoans, “I thought of buying my things early and keeping them before the rush, but I am yet to buy anything, and my money has finished.” The struggle is real.
Pause! While Nigerians are crying for help at the high cost of things, Startups are also having a decline in sales.
Fashion Flop: Tailors and Vendors Left Hanging
Looking fly during the holidays is a tradition, right? Not so much this year. Tailors like Ade Akinwande are twiddling their thumbs, no late-night sewing parties happening. Even fabric vendors like Kelechi Agunwa are singing the blues, “I never sell anything today, which kind Christmas be this, I no even fit talk because I dey vex.” Sales for shoes? Not much better. The holiday spirit seems to be on vacation.
Startups Struggle: Ho-Ho-Hold the Investments
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Startups, the unsung heroes of innovation, are also feeling the pinch. Funding and investments are tighter than that pair of jeans after too much holiday feasting.
Just this year alone, the startups ecosystem has lost a number of startups in Nigeria and Africa as a whole. Some have had to lay off staff. Jumia Food had to shut down its operations in some African countries, including Nigeria. Last month, we published the sad exit of Okada Books in Nigeria.
In April, Lazerpay, a Nigerian crypto and web3 company, confirmed it was shutting down operations after failing to raise additional funding. The startup had laid off some employees last year after the proposed lead investor for its seed round withdrew due to the “market conditions and disagreement on terms”.
Entrepreneurs are crossing their fingers, hoping for a magical turnaround in the new year.
A Call to Santa… Oops, the Government
Amidst the gloom, Nigerians are holding onto hope for a better tomorrow. They’re also sending a wishlist to the government, asking them to address the inflation rate ASAP. Let’s hope someone in the North Pole… oops, I mean the government, is listening!
In the end, it’s a challenging Yuletide season for many, but who knows? Maybe a sprinkle of holiday magic can turn things around. Fingers crossed!