President Bola Tinubu announced progress towards economic recovery for Nigeria, despite ongoing high inflation and a cost-of-living crisis. Recent GDP growth of 3.8 percent in late 2024, alongside increased revenues and strategic reforms, suggests stabilization. However, Nigerians continue to struggle with rising living costs, particularly in urban areas like Lagos, where rents have surged dramatically. The government aims to enhance domestic production to mitigate reliance on imports.
President Bola Tinubu has assured Nigerians of gradual economic recovery despite enduring a prolonged cost-of-living crisis. The West African country has faced significant inflation following the removal of a costly fuel subsidy and the decision to permit the naira to float freely. While these reforms are acknowledged by the government and institutions like the International Monetary Fund as necessary, many citizens are experiencing some of the harshest economic conditions in decades.
During the signing of the 2024 budget, which amounts to 55.99 trillion naira ($37 billion), President Tinubu remarked on the resolve demonstrated in overcoming significant economic challenges. He noted, “The past year tested our resolve but through the economic discipline and strategic reform, we achieved what many deemed impossible.” Recent economic data revealed a 3.8 percent expansion in Nigeria’s GDP in the final quarter of 2024, signifying the strongest growth in three years.
Citing various positive indicators including economic reforms and an increase in government revenues to 21.6 trillion naira in 2024, the President expressed optimism about his administration’s policies yielding results. He stated, “After the initial turbulence…the take-off was very cloudy and uncertain. Today, we see a light at the end of the tunnel.” Some analysts expressed cautious optimism about the latest GDP figures and the emerging stabilization of prices.
As President Tinubu nears the midpoint of his first term, he has emphasized macroeconomic stability and security as pivotal foci for the 2025 budget. The country has wrestled with a 15-year insurgency concentrated in central and northern regions, primarily affected by the activities of Boko Haram and ISWAP. The government anticipates that improved economic conditions, including increased domestic refinery output and a successful agricultural harvest, will decrease reliance on imports, particularly for petroleum and food.
Recent adjustments to Nigeria’s inflation calculation showed a decrease in the year-on-year inflation rate from 34.80 percent in December to 24.48 percent in January. Despite these adjustments, many citizens, particularly in Lagos, continue to face escalating living costs. Tenants in the city are experiencing rent hikes between 100 and 200 percent in certain neighborhoods, placing tremendous financial burden on households as wages have not kept up with inflation.
In summary, President Bola Tinubu has expressed confidence in Nigeria’s economic recovery despite the ongoing cost-of-living crisis. Recent economic indicators suggest potential growth following strategic reforms, although many citizens still face significant financial challenges. Looking ahead, the administration is focused on stabilizing the economy through enhanced domestic production and agricultural output. Continued vigilance and strategic policy implementation will be crucial for alleviating the financial strain on Nigerians.
Original Source: newscentral.africa
