President Bola Tinubu announced that Nigeria is approaching a resolution to its economic crisis, citing recent GDP growth and strategic reforms as indicators of progress. Despite these positive signs, ordinary Nigerians are enduring the worst economic conditions in a generation, with soaring inflation and rent prices significantly outpacing wage growth. The government remains hopeful for improvements in 2025 with further domestic production and reduced reliance on imports.
On Friday, President Bola Tinubu indicated that Nigeria is nearing a resolution to its ongoing economic crisis, often referred to as a cost-of-living crisis, which has continued into its second year. Since assuming office in 2023, Tinubu has implemented significant reforms, including the abolition of a costly fuel subsidy and the liberalization of the naira’s exchange rate, all of which have contributed to soaring inflation rates across the nation.
While the reforms have received support from the government and international institutions like the International Monetary Fund, many average Nigerians are currently facing one of the most severe economic crises in a generation. President Tinubu remarked, “The past year tested our resolve but through the economic discipline and strategic reform, we achieved what many deemed impossible,” during the signing of this year’s 55.99-trillion-naira ($37 billion) budget.
Recent GDP data indicates that Nigeria’s economy grew by 3.8 percent in the fourth quarter of 2024, marking the fastest growth rate in three years. Tinubu pointed to this growth, the reforms in foreign exchange policies, an increase in minimum wage, and a boost in government revenues to 21.6 trillion naira for 2024 as signs that the efforts to stabilize the economy are yielding positive results. “Today, we see a light at the end of the tunnel,” he added.
As President Tinubu approaches the midpoint of his inaugural term, analysts have expressed cautious optimism regarding the recent GDP figures, which suggest potential price stabilization. In his December budget proposal, which initially estimated costs at 47.90 trillion naira, he emphasized that restoring macroeconomic stability and enhancing national security would be essential priorities for the 2025 fiscal cycle.
The central and northern regions of Nigeria have been beset by a jihadist insurgency for the past 15 years, with various gangs affiliated with Boko Haram and the Islamic State West Africa Province (ISWAP) gaining influence. The government anticipates an improved economic performance in 2025, supported by increased domestic refinery production and a fruitful harvest that could lessen the nation’s reliance on food imports.
Recent revisions to inflation data showed that the year-on-year inflation rate in January was adjusted to 24.48 percent, down from 34.80 percent in December. However, many Nigerians continue to experience financial difficulties, particularly as housing costs soar in cities like Lagos, where real-estate values have skyrocketed by 100 to 200 percent in certain areas. Others report more modest increases but still face rises of approximately 30 percent, while wages have not kept pace with inflation.
In conclusion, President Tinubu’s assertion of nearing the end of Nigeria’s economic crisis reflects optimism based on recent GDP growth and strategic reforms. However, the daily struggles of common citizens, particularly in housing affordability, underscore the ongoing nature of these challenges. Continued focus on macroeconomic stability and security will be fundamental as the country navigates the coming years.
Original Source: www.france24.com
