Nigeria Struggles with Soaring Inflation, Citizens Lament Economic Hardship Under Tinubu’s Leadership

Nigeria faces an uphill battle as inflation rates surge, hitting a 27-year high, with President Bola Ahmed Tinubu’s administration contending to contain the economic turmoil.

In the last six months, Nigeria has witnessed a relentless increase in inflation, reaching 28.92% in December, the highest in nearly three decades, according to the National Bureau of Statistics. The surge in food inflation, accounting for a significant portion of the inflation basket, rose to 33.93% in December, further exacerbating the financial strain on citizens.

The direct consequence has been a spike in the cost of living, reflected in soaring prices of essential commodities. Despite President Tinubu urging patience from Nigerians, citizens are questioning the sustainability of this waiting game as basic food items experience substantial price hikes.

Umar Nasiru, a 46-year-old resident in Abuja, expressed frustration, stating, “President Tinubu’s ‘patient’ approach does not address the 100% hike in food items, accommodation, clothing, education fees, and other skyrocketing prices.”

The World Bank’s December 2023 Nigeria Development Update revealed that accelerating inflation drove 24 million Nigerians into poverty in the first five months of the year, pushing the national poverty rate from 40% in 2018 to 46% in 2023.

Despite efforts by the Central Bank of Nigeria, which raised interest rates to 18.75% in July 2023 and lifted restrictions on 43 items in October, the economic challenges persist. President Tinubu’s proposed solutions, including providing N25,000 monthly for three months to 15 million Nigerians and tax waivers, have not alleviated the hardship.

Economists like Prof Segun Ajibola emphasize the need for a comprehensive approach, urging the administration to move beyond rhetoric and take intentional measures to address the root causes of inflation. Prof Godwin Oyedokun proposes immediate measures, including government intervention, increasing productivity, addressing inflation and currency devaluation, encouraging competition, investing in agriculture, expanding social safety nets, improving infrastructure, and increasing access to credit.

The CEO of SD & D Capital Management, Mr. Idakolo Gbolade, attributes rising inflation to fuel subsidy removal and Naira floating policies. Gbolade anticipates a potential slowdown in inflation by mid-2024 if the government’s emergency policies on agriculture and the commissioning of Dangote and Port Harcourt refineries are effectively implemented.

As Nigerians endure economic hardship, the government’s revenue has surged due to the twin policies of fuel subsidy removal and Naira devaluation, leading to increased revenue in the last half of 2023. Investors in the Nigerian Stock Exchange also experienced a rebound with a year-to-date growth of 45.90% in 2023.