Nigeria is making steady progress towards economic recovery despite enduring the second year of a severe cost-of-living crisis, President Bola Tinubu said on Friday.
The West African nation has been grappling with soaring inflation following Tinubu’s 2023 decision to remove a costly fuel subsidy and allow the naira to float freely against other currencies.
While both the government and institutions such as the International Monetary Fund have maintained that these reforms were necessary, many Nigerians are facing the toughest economic conditions in decades.
“The past year tested our resolve but through the economic discipline and strategic reform, we achieved what many deemed impossible,” Tinubu said while signing the 2024 budget, worth 55.99 trillion naira ($37 billion).
Economic data released this week showed that Nigeria’s GDP expanded by 3.8 percent in the final quarter of 2024, marking the strongest growth in three years.
Citing economic reforms, a minimum wage increase, and a rise in government revenues to 21.6 trillion naira in 2024, Tinubu pointed to these as signs that his policies were taking effect.
“After the initial turbulence… the take-off was very cloudy and uncertain,” he said. “Today, we see a light at the end of the tunnel.”
As Tinubu approaches the halfway mark of his first term, some analysts responded with cautious optimism to the latest GDP figures, noting signs of price stabilisation.
When he unveiled the budget in December—originally estimated at 47.90 trillion naira—Tinubu underscored macroeconomic stability and security as key priorities for 2025 government spending.
Nigeria’s central and northern regions have endured a 15-year insurgency, with armed groups linked to Boko Haram and the Islamic State West Africa Province (ISWAP) expanding their reach.
The government hopes for improved economic performance in 2025, aided by increased domestic refinery output reducing reliance on petroleum imports, as well as a strong agricultural harvest lowering the need for imported food.
Nigeria recently adjusted its inflation calculation, revising the official year-on-year rate for January to 24.48 percent, down from 34.80 percent in December.
However, many Nigerians continue to struggle with rising costs, particularly in Lagos, where rents have surged dramatically.
Tenants and real estate agents report rent hikes of between 100 and 200 percent in some areas of the sprawling commercial hub. Even those facing smaller increases have seen rent climb by at least 30 percent—an enormous strain, given that wages have not kept pace with inflation.
