President Bola Tinubu reassures that Nigeria is recovering economically despite a cost-of-living crisis. Reforms, including subsidy removals, have led to rising inflation but also a notable 3.8% growth in GDP. Tinubu emphasizes the achievements of strategic reforms while addressing ongoing challenges such as rising rents and economic instability in urban areas.
President Bola Tinubu announced that Nigeria is on a path to economic recovery despite facing a significant cost-of-living crisis for the second year. Following his decision to remove a costly fuel subsidy and allow the naira to fluctuate, the country has experienced rising inflation. Although needed by some economic institutions, these reforms have severely impacted many citizens.
During the signing of the 2024 budget, valued at 55.99 trillion naira ($37 billion), Tinubu expressed confidence, stating that recent economic discipline and reforms had led to achieving what was once considered impossible. Economic data indicates that Nigeria’s GDP grew by 3.8% in the final quarter of 2024, marking a notable recovery after three years of stagnation.
Tinubu highlighted the impact of his policies, referencing a minimum wage increase and government revenue rise to 21.6 trillion naira in 2024. He expressed optimism, stating that, “After the initial turbulence… the take-off was very cloudy and uncertain. Today, we see a light at the end of the tunnel.” Analysts have cautiously welcomed the GDP growth indicators and noted signs of price stabilization.
In December, while unveiling the budget, which had a prior estimation of 47.90 trillion naira, Tinubu emphasized macroeconomic stability and security as focal points for future government spending. Nigeria’s central and northern regions are still battling the repercussions of a 15-year insurgency led by groups like Boko Haram and ISWAP, which pose security challenges.
The government anticipates improved outcomes in 2025 due to rising local refinery capacity and successful agricultural harvests, potentially reducing dependency on imports. Adjustments to the inflation calculation revealed a year-on-year rate of 24.48% for January, down from a peak of 34.80% in December; however, many Nigerians remain burdened by rising expenses, particularly in urban centers like Lagos.
President Tinubu’s reforms, including the removal of subsidies, have led to both challenges and signs of recovery in Nigeria’s economy. While GDP growth provides hope, rising living costs, particularly in urban areas, continue to strain citizens. His focus on macroeconomic stability and increased local production positions Nigeria for potential improvement in the coming years, although caution remains regarding persistent inflation and security issues.
Original Source: newscentral.africa
