Nigeria’s escalating inflation is causing increasing hardship for its citizens, resulting in a shrinking purchasing power and heightened poverty levels during President Bola Ahmed Tinubu’s administration. Headline inflation surged 24 times in two years to reach 27.33% in October, primarily driven by a spike in food inflation to 31.52% from September’s 30.64%. This inflationary trend is adversely affecting various aspects of daily life, including the costs of food items, accommodation, clothing, electricity, and education fees.
While the Central Bank of Nigeria asserts that its recent monetary policies are yielding positive results, a market survey reveals a significant surge in food prices, with essentials such as rice, beans, groundnut oil, bread, eggs, and garri experiencing notable increases. The impact of inflation is vividly described by residents such as Chinedu Odah, who notes the challenges of meeting basic needs and rising education costs.
Across different regions, Nigerians report struggling with the soaring prices of food items, leading to reduced meal frequency and increased financial burdens. The World Bank data indicates that four million Nigerians slipped into poverty within the first five months of 2023 due to accelerating inflation. Despite President Tinubu’s promises to revitalize the economy, the fuel subsidy removal and foreign market liberalization since June have negatively impacted the nation’s economic stability.
Although the government claims improved revenue after subsidy removal, the effects on the well-being of Nigerians remain elusive. Nigeria’s high debt servicing, as reported by the World Bank, coupled with negative economic indicators like inflation, foreign exchange rates, and interest rates, paints a challenging economic scenario. The government’s initiatives, such as increasing the minimum wage, rolling out Compressed Natural Gas buses, and addressing the tax gap, are viewed as steps toward economic recovery.
However, the delay in implementing certain pledges, such as the N75,000 payment to vulnerable Nigerians, raises concerns about the effectiveness of these measures. Experts emphasize the urgent need to create employment opportunities, focus on production, and address the challenges in agriculture to combat inflation and boost economic growth. The prevailing economic difficulties underscore the resilience of Nigerians in the face of these challenges.