The economic landscape in Nigeria is becoming increasingly challenging as rising inflation takes a toll on citizens, plunging more people into poverty during President Bola Ahmed Tinubu’s administration. Headline inflation has surged 24 times in two years, reaching 27.33% in October, primarily driven by a spike in food inflation to 31.52% from 30.64% in September 2023.
The cost of living has skyrocketed, impacting essential commodities such as food items, accommodation, clothing, electricity, and education fees. Despite the Central Bank of Nigeria’s assertions that recent monetary policies are yielding results, a market survey indicates a significant increase of at least 20% in food prices.
Citizens across the country are feeling the brunt of inflation, with personal stories illustrating the challenges they face. Chinedu Odah in Abuja highlights the struggle to provide for his family’s basic needs, emphasizing the increased costs of education. Similar sentiments are echoed by Amina Zakaria in Kaduna and Nkechi Nwankwo in Port Harcourt, who lament the daily rise in food prices and the stagnant nature of their incomes.
Disturbingly, the World Bank reports that accelerating inflation has pushed an additional four million Nigerians into poverty in just five months of 2023. This comes on the heels of previous data revealing that 133 million people in Nigeria were already living below the poverty line.
President Tinubu, who promised to rejuvenate Nigeria’s economy with a renewed hope mantra, has faced criticism as citizens continue to grapple with economic hardships. The removal of fuel subsidies and the liberalization of the foreign market since June have negatively impacted the nation’s economy.
Despite the government’s claims of increased revenue following subsidy removal, concerns persist about the allocation of funds, with over 96% of revenue in 2022 dedicated to debt servicing. The country’s total debt stocks have risen to N87.38 trillion in the second quarter of 2023.
In response to the economic challenges, the government has outlined plans to increase the minimum wage, roll out Compressed Natural Gas buses, close the tax gap, and suspend the 40% remittance of internally generated revenue by Nigerian universities. However, delays in fulfilling promises, such as the payment of N75,000 to vulnerable Nigerians, have led to growing frustration.
Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria, emphasizes the harsh impact of inflation on Nigerians, particularly due to stagnant disposable incomes. Former president of the Chartered Institute of Bankers of Nigeria, Mazi Okechukwu Unegbu, suggests that food inflation may be higher than reported, calling for urgent measures to address unemployment and stimulate production.
Renowned economist Prof Segun Ajibola underscores the importance of tackling challenges in agriculture to achieve food security, emphasizing the need to encourage local farmers and protect them from unfair competition. Mr. Idakolo Gbolade, CEO of SD & D Capital Management, urges the government to implement measures to strengthen the Naira, execute agricultural policies, and provide alternatives to rising petrol prices.
As Nigeria grapples with these economic woes, citizens are anxiously awaiting tangible improvements and relief from the growing burden of inflation and poverty.”