Photo illustration by Dami Mojid / THE REPUBLIC.
THE MINISTRY OF BUSINESS X THE ECONOMY
Who Benefits From Nigeria’s Detty December?
Photo illustration by Dami Mojid / THE REPUBLIC.
THE MINISTRY OF BUSINESS X THE ECONOMY
Who Benefits From Nigeria’s Detty December?
Every December, Lagos transforms into a carnival of its own. Already, plans are already underway for this year’s own. The city’s streets heave with traffic as luxury SUVs jostle with rickety buses, all ferrying revellers from one sold-out concert to the next. Champagne bottles pop in VIP sections overlooking swaying crowds, while excited returnees from abroad—the self-styled ‘IJGB’ (I Just Got Back) diaspora—hop between high-end beach clubs and neon-lit concerts. This month-long frenzy of concerts, parties, weddings and festivals, colloquially known as ‘Detty December’ has in recent years become Nigeria’s most anticipated social season.
Its reputation is dazzling: a yuletide homecoming extravaganza that draws Nigerians from around the globe and even some international tourists to the ‘entertainment capital of Africa’. However, by the new year, as exhausted partygoers head home, a more sober reality sets in. Beneath the glitter and good times lurks a troubling economic puzzle: who really benefits from Detty December, and at what cost to the broader society?
A SEASONAL BOOM FOR WHOM?
On the surface, the economic numbers from Detty December look impressive. According to Lagos State officials, the 2024 festive season pumped over $71 million (about ₦54 billion) into the local economy across tourism, hospitality and entertainment. Hotels alone accounted for roughly $44 million of that windfall, as every room in the city seemed booked by visitors eager to join the festivities. Private shortlet apartments and Airbnbs added another $13 million or more, underscoring how lucrative the year-end rush has become for property owners.
Event organizers also smile to the bank. December in Lagos features a packed schedule of headline concerts (from Afrobeats superstars to international acts), high profile fashion shows, and cultural expos. Promoters routinely report sold-out venues and sponsorships during this period—an unimaginable feat at any other time of year. Small wonder the Lagos State tourism bureau proudly hails the city’s ‘ember month’ season as proof that Lagos is a premier destination for culture and entertainment.
The Nigerian diaspora is a huge driver of this boom. Each December, thousands of Nigerians living abroad fly home, bringing with them hard currency, pent-up holiday excitement, and often a willingness to spend freely. In local parlance, Detty December is the diaspora’s grand homecoming party. The Nigerians in Diaspora Commission (NiDCOM) estimates that Nigerians visiting from abroad contributed over ₦60 billion to the local economy in December 2024 alone. Much of that spending is concentrated in Lagos—on hotel stays, car rentals with drivers, lavish nights out and gifts for family. It is a significant infusion of cash. Indeed, the Central Bank of Nigeria reported that diaspora remittances surged in 2024, reaching over $4 billion—a 60 per cent jump from the previous year after currency reforms made formal transfers more attractive. Likewise, the World Bank notes that Nigeria receives around $20 billion in remittances annually (roughly 4 per cent of its Gross Domestic Product (GDP)), one of the largest volumes in Africa. This seasonal flood of ‘diaspora dollars’ each December injects liquidity and sparks a flurry of commerce, leading to an economic stimulus for the country.
Despite these headline figures, the benefits of Detty December are far from evenly distributed. A closer look at the data based on research by MO Africa, an independent research firm, reveals that the lion’s share of the earnings comes from upscale sectors—hotels, high-end restaurants, ticketed events—which primarily serve middle-class and affluent patrons. The owners of luxury hotels, event venues, airlines and concert promotion companies undoubtedly see December as their golden month.
But what about ordinary Nigerians? Outside the gated concert arenas and glittering hotel lobbies, many street vendors and small businesses struggle to capture a piece of the action. A roadside food seller or taxi driver might see a modest uptick in customers during the festive period, but it is nothing compared to the multi-million-naira gains reaped by big corporations and well-connected entrepreneurs. In effect, Detty December generates a concentrated burst of wealth that pools at the top of the economic pyramid, with limited trickle-down to the average Nigerian.
THE PRICE OF FESTIVITY: INFLATION AND DECEMBER TAX
While the holiday craze enriches a few, it imposes tangible costs on many. Nigeria’s inflation tends to spike during the festive season, as demand for goods and services soars. The National Bureau of Statistics (NBS) reported that headline inflation crept up to 34.8 per cent in December 2024—the highest rate in almost three decades. The surge was largely driven by seasonal pressure on food and transport prices, which is a predictable outcome when millions are trying to buy celebratory rice, chicken, drinks, and cover transport costs at the same time. Vendors, sensing the rush, often jack up prices. Lagos residents ruefully refer to this annual mark-up as the December tax. By late December, everything from a plate of jollof rice to a ride across town costs more than it did a month earlier.
Even members of the diaspora, who arrive with comparatively stronger foreign currencies, are often shocked by how far their money doesn’t go. ‘There is no doubt that there is a December tax on top of the existing inflation in the country,’ one returning Nigerian commented, noting that she was taken aback by the steep restaurant bills and pricey club cover charges. For locals paid in a steadily weakened naira, the situation is even tougher. While a concert ticket might cost ₦50,000 (about $65) for regular entry, Nigeria’s new monthly minimum wage is only ₦70,000. This means a single night’s entertainment can consume an entire month’s income for a low-wage worker. Unsurprisingly, most working-class Lagosians simply cannot afford to participate in the glam side of Detty December. They bear witness to the fun from the sidelines, contending with congested roads and inflated cost of basic necessities, while elite revellers bid up the cost of holiday cheer.
The spike in food prices is particularly punishing. Basic staples become more expensive in December, just when families gather for Christmas meals. According to a 2023 report by SBM Intelligence, a geopolitical research consultancy, the cost to prepare a pot of jollof rice (Nigeria’s beloved party dish) rose to over ₦21,000 by the end of 2023 from about ₦13,000 a year or two prior due to festive demand. With inflation already eroding incomes throughout the year, these seasonal price hikes push many households to a breaking point. In fact, surveys by the NBS found that roughly two in three families experienced hunger or food insecurity in late 2024, an alarming paradox in a period famed for feasting and abundance. Essentially, Detty December amplifies a tale of two economies: one of lavish consumption for those who can afford it, and one of tightened belts for those who cannot.
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CAPITAL FLIGHT AND MISSED OPPORTUNITIES
December’s economic gains are fleeting. As money flows in, a significant portion of it flows right back out of Nigeria’s economy. Consider the concerts headlined by international artists or Nigerian superstars based abroad—their hefty performance fees are often paid in dollars and ultimately leave the country. The same goes for much of the top-shelf liquor fuelling Lagos’ all-night parties, as Nigeria has become one of Africa’s largest champagne importers, guzzling thousands of French bubbly bottles every year. Yet, because these bottles are imported, every cork popped is naira flowing overseas to champagne houses in France. In recent years, economic hardship has slashed Nigeria’s champagne imports—from about 646,000 bottles in 2022 down to just 302,000 in 2023, the lowest in a decade. That cutback offers a sobering insight: much of the Detty December splurge depends on imported goods and services, meaning the boost to GDP is dampened by high import leakages. The multiplier effect of holiday spending in Nigeria is weakened because so many of the end purchases (premium drinks, foreign DJs, designer clothes, even fireworks) channel money abroad.
There are other forms of capital flight associated with the season. While diaspora Nigerians pour into Lagos, many wealthy resident Nigerians do the opposite—they jet out to vacation in Dubai, London or Cape Town once the holidays begin. December is peak season for these outbound travellers, who spend their holiday budgets in foreign shopping malls or at international events (such as Ghana’s Afrochella/AfroFuture festival or New Year’s celebrations in Dubai). This means Nigeria loses some high-end spending that might have circulated locally if attractive options existed at home for those demographics.
Detty December’s economic benefits are also geographically skewed, with Lagos having a near monopoly on the glitzy side. Other cities like Abuja, Port Harcourt, Enugu and Calabar see an influx of people returning home, but possess far less organized commercial activities to capitalize on. The famed Calabar Carnival, once a major December attraction in Cross River State, has waned in recent years, ceding attention to Lagos. The result is that tourism dollars and diaspora spending are clustered in a few hotspots, exacerbating regional disparities.
In its current form, Detty December may be viewed as economic waste, not because it fails to generate revenue, but because it represents inefficiency and wasted potential. A hefty amount of money changes hands in the space of a few weeks, yet Nigeria sees relatively little long-term development from it. By January, the temporary jobs for event staff and caterers disappear, and hotels return to half occupancy. The sudden injection of cash often does not translate into sustained investment. Instead, it can fuel a consumption binge with little to show afterwards except higher prices. Meanwhile, public infrastructure bears the strain of the holiday crowds without receiving proportional re-investment from the profits. It’s a boom-and-bust cycle on a micro scale: a December boom followed by an empty-pocket January for many consumers and a hangover for the economy at large.
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FESTIVE ECONOMIES DONE RIGHT: LESSONS FROM CARNIVAL AND DUBAI
Nigeria is not alone in having a big festive season. However, it lacks a coherent strategy to harness it for widespread economic benefit. Around the world, festive economies are structured to create inclusive growth, rather than just hedonistic splurges.
Brazil’s Carnival is perhaps the most well-known example of a cultural celebration turned national economic engine. Each year before the Catholic liturgical season of Lent, Brazil explodes into carnival revelry—from Rio de Janeiro to Salvador—drawing millions of tourists and engaging citizens across social classes. Crucially, Brazil’s Carnival is deeply rooted in local communities. For months, neighbourhood samba schools prepare elaborate parades, employing legions of costumemakers, carpenters, choreographers, and dancers from working-class areas.
When Carnival finally arrives, the payoff is massive: During Carnival 2024, Rio de Janeiro alone generated R$5 billion (approximately $1 billion). Nationwide, Brazil’s 2024 Carnival season brought in R$11.7 billion ($2.08 billion) in tourism and service sector revenue.
Hotels in Rio report near 100 per cent occupancy, airlines add extra flights, and an army of informal vendors flood the streets selling food, drinks, and souvenirs, ensuring that even micro-entrepreneurs get a slice of the action. The government also actively supports Carnival through city tourism departments and coordinated security, recognizing that the festival is not just a cultural expression but a major economic driver. Importantly, much of the spending stays within Brazil: its local people performing, local businesses catering to crowds, and foreign visitors bringing in new money.
While Carnival’s benefits are not perfectly distributed, they reach a broad base—from favela residents who earn income as performers or street vendors, to middle-class Brazilians in hospitality jobs, and corporate sponsors and media. Over time, Carnival has become a sustainable annual industry, creating permanent jobs in entertainment, event management and costume production. It has also boosted Brazil’s cultural exports, including the global popularity of samba music and dance. In short, Brazil figured out how to turn a party into an economic platform.
Another instructive example comes from outside the traditional cultural sphere: the Dubai Shopping Festival (DSF). Launched in 1996 as a government-driven initiative to revive Dubai’s retail sector during the slow winter months, DSF has evolved into a city-wide economic phenomenon. Each year, typically from late December through January, Dubai transforms into a shopper’s paradise with sweeping sales, promotions, raffles, and entertainment events. The scale is enormous. In recent editions, DSF has attracted spending reportedly $1.5–2 billion during the 2024–2025 edition. The festival alone contributes between 5 to 10 per cent of Dubai’s annual retail revenues.
The genius of DSF lies in its integrated approach. It is not just malls offering discounts, but a complete experience that includes concerts by global artists, fireworks shows, food festivals, and even cultural exhibitions—all packaged to create a must-visit experience. The government collaborates closely with businesses to ensure that the benefits ripple through multiple sectors.
Through DSF, Dubai manages to capture consumer spending that might otherwise go elsewhere or not happen at all. It serves as a prime example of a festive event engineered for economic impact, where the whole ecosystem of government, private sector and consumers is aligned to maximize gains. While Dubai’s model is aided by significant state resources and a highly organized retail sector, the core lesson is transferable: strategic planning can turn a holiday season into a broad-based economic catalyst.
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TOWARD AN INCLUSIVE AND SUSTAINABLE DETTY DECEMBER
How can Nigeria bridge the gap between the current Detty December free-for-all and a more inclusive, productive festive economy?
The first step is recognizing that December holds immense economic promise beyond the superficial glamour. Rather than dismissing the end-of-year partying as merely frivolous, policymakers should treat it as a legitimate economic period to plan for. One that requires data collection, stakeholder consultations, and policy design to correct the inefficiencies of the status quo.
One obvious area for reform is managing the inflationary pressures and shortages that recur each year. Government agencies could pre-emptively coordinate to ensure an adequate supply of essentials during the holiday period. For instance, the Ministry of Agriculture could release strategic grain reserves into the markets in December to prevent extreme price spikes. Authorities might also crack down on price-gouging practices—perhaps by setting up hotlines or swift penalties for egregious cases—to protect consumers from the December tax.
On the monetary side, the Central Bank of Nigeria can anticipate the seasonal surge in cash demand and proactively support the financial system with liquidity (as indeed happens to some extent). The goal should be to smooth out volatility, so that a busy December does not translate into painful inflation in January. Keeping prices stable would protect vulnerable consumers and encourage more confident spending in the local economy.
Another key step is to broaden participation in the Detty December economy. Currently, the formal events are pricey and exclusive, which limits who can benefit from them. To counter this, state and local governments, in partnership with private organizers, could invest in more open, public events and markets during the season. For example, Lagos State already stages the annual Greater Lagos Fiesta, a series of free concerts and street parties in different districts to encourage community celebration. Expanding such initiatives can ensure that more Nigerians can still partake in the season’s festivities and spend a bit of money while at it. Similarly, creating designated vendor zones or holiday markets can give small businesses a platform if well publicized. These could attract patronage from diaspora visitors eager for authentic local products, thereby channelling some diaspora dollars into the hands of ordinary Nigerians. Essentially, the idea is to democratize the festivities—not every party should require an exclusive pass.
There is also potential to extend the Detty December energy beyond entertainment into areas like tech and investment. In recent years. some forward-thinking groups have organized diaspora investment summits and tech conferences in December, timed to capture the visiting talent and capital of Nigerians abroad. These should be scaled. Beyond just their spending; we should be capturing diaspora investments and expertise. NiDCOM and other agencies could roll out special ‘Home for the Holidays’ investment schemes, perhaps diaspora bonds or simplified processes to buy property or invest in Nigerian businesses during December when interest is high. If even a fraction of the ₦60 billion diaspora spending was converted into capital for Nigerian SMEs, the multiplier effect would extend well past the new year.
Lastly, addressing capital flight also requires structural interventions. Local production must be increased to reduce the reliance on imported goods and ensure the retention of generated revenue in the local economy. Supporting local breweries, fashion designers, and tech providers to serve the festive industry will deepen domestic value.
Detty December holds up a mirror to Nigeria’s broader economic dynamics—the exuberance and entrepreneurship on one hand, and the inequality and structural weakness on the other. The challenge and opportunity ahead are to reform this festive frenzy from a short-term, unequal splurge into a more balanced vehicle for prosperity. This does not mean diluting the fun or curbing the cultural richness of the celebrations. Rather, it means expanding the circle of benefit so that the season truly delivers joy—economic as well as social—to a majority of Nigerians. A more inclusive Detty December could become a powerful tool: reducing capital outflows, driving tourism, supporting small businesses, and bolstering national pride.
In the end, the measure of success will be when the typical Nigerian can say that the December holidays aren’t just a time of lavish spectacles for the few, but a time when the nation as a whole feels a lift. Achieving that will require intentional policy tweaks, creative thinking, and collaboration between the public and private sectors. The blueprint is there in other countries’ experiences and in our own understanding of what currently goes wrong. With reforms, Nigeria can rewrite the Detty December story—transforming it from an economic waste into an economic win that carries momentum into the new year. Each December can then close not with a financial hangover, but with hope and progress that all citizens can toast to⎈
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