Economic hardship leaves trails of dust, losses in relaxation spots
As the present hardship in the country continues to bite harder, residents of Jalingo, the Taraba state capital, are abandoning beer joints to adjust to economic reality, writes JUSTIN TYOPUUSU
It was the evening of Sunday March 10, 2024, and the time was 5 pm when our correspondent visited Premier Lounge, one of the popular beer joints in Jalingo, the Taraba State capital. Strangely, the usually bustling relaxation spot was nearly empty with only a few customers.
Many of the plastic tables and chairs were dusty, a sign that the place had not received its usual number of customers for some days.
A middle-aged man identified as Mark Adi, who was described by a bar attendant as a regular customer, suddenly drove in and requested a bottle of alcohol and a bottle of water.
An argument between the bar attendant and Adi soon caught our correspondent’s attention.
“I ordered spirit, not beer. Who has the money now to drink beer? We are now trying to see how we can survive this economy and that is why some of us are cutting down on beer.
“Take that thing (beer) away and bring the spirit. Just one bottle of spirit is enough for me for two days,” Adi said.
“Today, as you can see, there are no customers here; the economic hardship and widespread poverty have precipitated a notable trend, forcing people to adjust their spending and prioritise food and other basic needs.
“The once bustling social hubs like this one have seen dwindling patronage as residents grapple with financial constraints and prioritize basic needs over leisure activities. I am just here to get this spirit as a substitute to beer because I need some percentage of alcohol in my system and this (spirit) is far cheaper than beer,” he added.
Like Adi, many Taraba residents in the face of economic hardship, have been forced to cut down on their spending for leisure to enable access to food and other family needs
A trader, Vyoku Tsokwa, told Sunday PUNCH that he had very little to spend on his family and saw relaxation at bars as an expensive risk.
“If not for the heat, you wouldn’t see me outside. The prices of food are soaring daily and as a consequence, bars have witnessed a decline in patronage, with many struggling to stay afloat financially,” Tsokwa said.
“In the days to come, many of these beer joints will fold up. The operational costs of running them have risen due to factors such as inflation, taxation, increased competition from alternative entertainment options, and unstable electricity among others.
“I was told that prices of beer have been reviewed upward generally. Rising prices of alcoholic beverages and associated expenses deter budget-conscious consumers from frequenting these establishments regularly.
“Additionally, the emergence of alternative leisure venues, such as cafes, restaurants, and recreational centers, provides residents with alternative socialising options, further challenging the viability of beer bars.”
Fun spot owners lament poor sales
The Chief Executive Officer of Gina Fun Hangout, Prince Jacob Tor-Musa, lamented the poor sales his business had recorded in the last 10 months. According to him, the economic hardship had affected businesses of all sizes, including bars.
His concern was re-echoed by Ezra Bala who operates a fun joint in the Zing Local Government Area of the state.
Bala said, “As disposable incomes shrink and consumer spending tightens, patronage at these establishments dwindles, leading to a sharp decline in sales. The cyclical nature of economic downturns exacerbates the situation, creating a feedback loop where reduced sales further strain the financial viability of beer bars and other fun joints.
“As operators, we find ourselves caught up in a precarious situation, attempting to maintain profitability amid shrinking margins and mounting operational costs.
“Before now, beer joints and fun parks were booming businesses in Taraba and a great contributor to the revenue of the state but today, the story is different.”
Despite the clinking of glasses and animated conversations, the voices of beer joint operators in Taraba reverberate the lamentations, expressing frustration and disillusionment in the face of economic adversity.
Prince Jacob Tormusa painted a clear picture of how lucrative his relaxation spot was several years back, offering a source of livelihood and a means of supporting his family. However, as sales continued to dwindle, optimism gave way to despondency.
Tormusa cited various factors contributing to the predicament of owners of alcohol joints in the state, including the declining purchasing power of consumers.
With inflation outpacing wage growth and unemployment rates remaining stubbornly high, he said residents of Taraba had been forced to prioritise essential expenses over discretionary spending, relegating visits to beer parlours which are now considered a luxury as the price of an average bottle of beer rose from N600 to as high as N1,200, depending on the brand.
“We need to be supported especially by the government through policies that will make us remain in business. For example, the restriction on the keke NAPEP movement from 5 am to 8 pm is affecting our businesses.
“The government should look into the timing or provide an alternative means of movement. With the heat wave now, many people would ordinarily want to stay out beyond 8 pm but they are compelled to go home because of lack of mobility beyond 8 pm.
“Some people must drink beer to take their minds off temporarily the challenges facing them, but again, the manufacturers keep increasing their prices upwards and this is affecting our sales. Someone who used to drink five bottles of beer now takes just a bottle, and this is affecting our sales.
“The cost of maintaining our businesses is even higher with the removal of the fuel subsidy. Most times, we run on generators to ensure our drinks are cold, or else we will not see anybody. Who would want to buy a hot beer for N800?” he lamented.
‘Govt preparing palliatives for business owners’
Though efforts to get through to the Commissioner for Information and Reorientation, Zainab Usman Jalingo, were unsuccessful, as of the time of filing this report, a senior director in the ministry confided in our reporter that the government was making plans to support businesses that had a direct impact on the daily lives of the people.
“I am privy to the fact that the government is rolling out a series of palliative plans for the citizens and business owners, especially small, medium scale, and nano businesses and the beer joint operators will not be left behind.
“I will advise them to form cooperative groups and apply when the government is rolling out palliative support to businesses,” the director said.
Economist speaks
An economist and lecturer at the Taraba State University, Jalingo, Harris Mela, while speaking on the economic situation in the state and the country, told our correspondent that he was not surprised with the way people have been adjusting their spending and prioritising their needs.
According to him, the removal of the fuel subsidy without adequate and comprehensive measures to address the impact of the removal was responsible for the growing economic hardship facing the country.
“Taraba State, like many other states in Nigeria, is facing significant economic challenges characterised by the high level of poverty, limited job opportunities, and inadequate infrastructure. The state’s economy is predominantly agrarian, with agriculture serving as the primary source of livelihood for a majority of residents.
“However, factors such as climate change, inefficient land use practices, and lack of access to credit have hindered agricultural productivity and perpetuated poverty,” he said.
Mela said that the unemployment rate in Taraba State remained high, particularly among the youth population, while limited job prospects forced many individuals into precarious informal sector employment or agricultural subsistence activities with meager returns.
He added, “As a result, poverty levels remain alarmingly high, with a significant portion of the population struggling to meet basic needs such as food, shelter, and healthcare.
“The abandonment of beer bars in the state is a symptom of deeper socio-economic challenges facing the state. Addressing the root causes of economic hardship and poverty in Taraba requires concerted efforts from government authorities, community leaders, and development partners.
“The government should embark on initiatives aimed at stimulating economic growth, creating sustainable livelihood opportunities, and enhancing access to basic services that are essential for improving the socio-economic conditions of residents. Additionally, targeted interventions to support small businesses, including beer bars, through access to credit, skills training, and market linkages can help revitalise these establishments and stimulate local economic activity.”
