President Bola Tinubu of Nigeria expressed optimism about the country’s economic recovery, stating that there is a “light at the end of the tunnel” for the ongoing cost-of-living crisis. Despite significant reforms leading to inflation and economic struggles, recent GDP growth signals potential improvement, while soaring rents continue to challenge many Nigerians. The government aims for stability and security in the coming years, addressing the economic fallout experienced by ordinary citizens.
Nigerian President Bola Tinubu announced that the country is approaching the “light at the end of the tunnel” as it navigates the second year of a cost-of-living crisis. This economic situation has been exacerbated by soaring inflation, stemming from reforms initiated by Tinubu after he assumed office in 2023, including the abolishment of a costly fuel subsidy and the liberalization of the naira’s exchange rate.
Despite government assurances that the reforms are necessary for long-term stabilization, many citizens face the worst economic conditions in a generation. Tinubu emphasized the government’s commitment in overcoming these challenges, stating, “The past year tested our resolve but through the economic discipline and strategic reform, we achieved what many deemed impossible.” This statement was made during the signing of this year’s budget totaling 55.99 trillion naira ($37 billion).
The latest GDP figures indicate that Nigeria’s economy experienced a growth rate of 3.8 percent in the fourth quarter of 2024, marking the fastest growth in three years. Tinubu linked this growth to positive reforms, including efforts to stabilize exchange rates, raise the minimum wage, and increase government revenue to 21.6 trillion naira in 2024. “Today, we see a light at the end of the tunnel,” he remarked.
As Tinubu approaches the midpoint of his first presidential term, analysts note cautious optimism over the GDP growth, alongside signs of price stabilization. In December, he revealed the proposed budget cost of 47.90 trillion naira, outlining the restoration of macroeconomic stability and security as key focuses for government spending in 2025.
The deterioration of security, particularly from jihadist insurgencies in northern Nigeria, complicates these economic challenges. The government is working toward reducing petroleum imports and aims for increased domestic refinery production, which would also support local agricultural production and lessen food import dependence.
Recently, Nigeria adjusted its inflation data, reducing the official year-on-year inflation rate from 34.80 percent in December to 24.48 percent in January; however, many Nigerians are still struggling. In particular, residents of Lagos, the country’s economic hub, face skyrocketing rents, with reports indicating property rents have surged between 100 to 200 percent, while other areas see increases around 30 percent, leaving salaries unable to match inflation rises.
Overall, Nigeria’s economy is currently in a critical state as President Tinubu’s reforms seek to alleviate a prolonged cost-of-living crisis. With GDP growth along with inflation adjustments suggesting improvement, many citizens still experience the burden of financial hardship, particularly due to soaring rents. The government’s focus remains on achieving macroeconomic stability and enhanced security which will be vital for future growth.
Original Source: www.france24.com
