Having enjoyed 65 years of independence, Nigeria’s economy is a paradox of hope rooted in reform but marred by persisting misery. President Bola No doubt Tinubu’s administration has launched somewhat far-reaching economic reforms, including the removal of fuel subsidy, exchange rate unification, and fiscal consolidation. These initiatives, though applaudable from foreign analysts, have not yet translated into tangible relief to the average Nigerian.
Most recent data from the National Bureau of Statistics (NBS) point to a modest decline in headline inflation to 25.8%. But this statistical glitz has more than it seems: food inflation remains ominously high, and millions of Nigerians are falling deeper into poverty. The World Bank estimates that over 100 million Nigerians live below the poverty line—a ghastly indictment of decades of economic mismanagement.
The Central Bank of Nigeria (CBN), with its new leadership, has stepped in to stabilize the naira and check inflation. The cost of borrowing remains too high, suffocating small businesses and manufacturers. The real sector is finding it difficult to breathe with many factories operating below capacity or shutting down entirely because of high electricity bills and poor consumer purchasing power.
Though the government boasts about its reforms as pain now for future gain, this pain becomes unbearable for most with no proper social safety nets. The removal of subsidies, for instance, was not followed by adequate palliatives or means of transport, and people were left stuck in traffic, and families tussled.
Furthermore, the promise of foreign investment has yet to pay off meaningfully. Investors continue to be wary of Nigeria’s volatile policy environment, corruption-infested regulatory systems, and current insecurity. The recent suspension of Rivers State government and legislature only helps to raise concerns over rule of law and political stability.
To move from talk of reform to real recovery, the Tinubu administration must ensure growth that is inclusive. This entails investing in agriculture, developing SMEs, expanding credit access, and ensuring reforms are made with the people at the front and centre, not the market. Transparency, accountability, and follow-through on policy are not negotiable.
The fate of Nigeria’s economy hangs in the balance. The glimmers of hope should not be transformed into a mirage. The time is now.
See also:
A Nation at 65: Mourning Nigeria’s Lost Potential.
The Ticking Time Bomb of Flooding in Lagos Island
