Majority of Nigerian households spend 196% of their monthly income during Christmas celebration.

This was disclosed by WorldRemit in its multi country study, which was released on Tuesday and seen by Nairametrics.

The report was conducted to determine the true cost of Christmas in 14 countries, mining data to showcase the average costs of traditional Christmas meals, decorations and gifts.

What WorldRemit is saying about Christmas cost

It stated, “The traditional Nigerian celebration starts from the first day of December with the sounds of fireworks and last-minute shopping, which attracts an increase in the price of items from 5% to even 50% the closer it gets to the festivities.

“Most of the shopping is done in November, except for perishable goods, which are bought in early December. Our celebrations are different in rural areas where Christmas may be celebrated as a family of five, versus in cities where there may be a family gathering of 30 or more people.”

Highlights of the report:

* Of the 14 countries observed, data showed Rwandans are most impacted by the disparity between average household income and holiday costs, spending 708% of their monthly income and nearly 60% of their annual income on the holiday.

* Filipinos spend 257% of their monthly income on the holiday. In the region, Christmas celebrations begin in September and extend into January, making it challenging for many families to afford the basic costs of Christmas.

* Without remittances into countries like the Philippines, celebrating Christmas would be near impossible.

* More than 244 million people are classified as immigrants around the world and account for large percentages of populations in countries like the United States (14.4% of total population)2, UK (9%)3, Australia (30%)4 and Canada (21.5%)5.

* During the holidays, immigrants and overseas foreign workers are often unable to celebrate with their families in-person, and find themselves working to support not only themselves, but also their families and communities back home.

* Christmas is one of the primary reasons immigrants and migrants send money back to their home country. Because of the high cost of coveted seasonal items, food, and the overall impact COVID has had on supply chain and inflation, it is vital for remittance senders to be able to support those dearest to them by helping make Christmas a reality for their loved ones.

What you should know

Out of the 14 countries observed that typically receive remittances, 10 spent more than 50% of their monthly household income on the holiday.

“A holiday that would be impossible without remittances, the season of giving becomes vital, where the world’s largest send markets typically only spend less than 3% of their annual income on the holiday,” it added.

The Christmas items were selected based on desk research of typical Christmas meals, gifts and decorations. We then researched the average price of each item for an average family on an average income.

The prices were researched online in late October 2021 – November 2021. Prices and breakdowns of what is appropriate for Christmas celebrations in each country were then shared with locals of that country who we hired to validate the data as correct.

The exchange rate from the local currency was calculated on Monday 5 November. The percentage figures are percentages of the overall budget in the local currency.

About WorldRemit

WorldRemit is a cross-border digital payments service that provides international money transfer and remittance services in more than 130 countries and over 70 currencies. It was founded in 2010 by Ismail Ahmed, Catherine Wines, and Richard Igoe.