Reuters has reported that Nigeria is currently facing its most significant cost of living crisis in decades, exacerbated by President Tinubu’s bold yet unpopular economic reforms implemented since taking office last May. The country heavily relies on imported food and fuel and has been further impacted by soaring global prices resulting from the Russia-Ukraine war, all while recovering from the COVID-19-induced recession in 2020.
President Tinubu, who campaigned under a “Renewed Hope” slogan, initiated measures such as the removal of costly petrol subsidies and foreign currency controls to bolster government finances, restore investor confidence, and revitalize the economy. However, these reforms have led to a surge in inflation to its highest level in thirty years, with the naira currency plummeting to record lows due to acute dollar shortages. This has resulted in a significant rise in the prices of essential commodities such as food, cooking gas, medicines, fuel, and public transport, placing immense strain on household budgets.
Reuters highlights that Tinubu inherited an economy grappling with record debt, high unemployment, low oil output, draining subsidies, and persistent power shortages hampering economic growth.
The International Monetary Fund (IMF), following a staff visit on March 4, emphasized the urgent need to address rising food insecurity, with approximately 8 percent of Nigerians facing food insecurity.
One Abuja resident, Blessing Joseph, previously supported herself and her son by weaving bags, sandals, and jewelry. However, since November, she has faced significant hardships as customers dwindled, often leaving her and her son hungry. Joseph, who used to earn up to N30,000 weekly, now struggles to make N5,000 due to a decline in orders, including those for weddings and other events.
The repercussions of Nigeria’s economic challenges have extended to corporate boardrooms, according to Reuters, indicating the widespread impact of the country’s economic downturn.
THIS STORY FIRST APPEARED IN BUSINESS DAY
