Tinubu Promises Economic Recovery Amid Ongoing Cost-of-Living Crisis

President Bola Tinubu announced Nigeria’s steady progress towards economic recovery amid a severe cost-of-living crisis. Following the removal of a fuel subsidy and allowing the naira to float, inflation has surged. However, recent GDP growth of 3.8 percent indicates possible recovery, supported by economic reforms and a robust budget for 2024. Despite some positive indicators, many Nigerians still struggle with rising living costs, particularly in urban areas.

On Friday, President Bola Tinubu asserted that Nigeria is making significant strides toward economic recovery despite grappling with a profound cost-of-living crisis that extends into its second year. Significant inflation has followed Tinubu’s decision earlier this year to eliminate a costly fuel subsidy and permit the naira to float freely against other currencies, triggering serious economic challenges for many Nigerians.

During a budget signing for the 2024 plan, valued at 55.99 trillion naira ($37 billion), Tinubu reflected on the difficult year, stating, “The past year tested our resolve but through economic discipline and strategic reform, we achieved what many deemed impossible.” Latest economic data indicates GDP growth of 3.8 percent in the last quarter of 2024, marking Nigeria’s strongest growth in three years.

Highlighting key positive indicators, Tinubu referenced forthcoming economic reforms, a raised minimum wage, and government revenues increased to 21.6 trillion naira for 2024. “After the initial turbulence… the take-off was very cloudy and uncertain. Today, we see a light at the end of the tunnel,” he remarked. Analysts are cautiously optimistic as they observe signs of price stabilization in response to the recent GDP figures.

While presenting the budget, initially projected to be 47.90 trillion naira, Tinubu emphasized the importance of macroeconomic stability and security as central focuses for government expenditures in 2025. The ongoing insurgency impacting Nigeria’s central and northern regions has complicated the economic landscape, particularly from factions associated with Boko Haram and the Islamic State West Africa Province (ISWAP).

Looking toward 2025, the government anticipates enhanced economic performance, partly due to increased domestic refining capacity reducing dependence on imported petroleum, alongside a strong agricultural output potentially decreasing food import needs. The re-evaluation of inflation in January revealed a new year-on-year rate of 24.48 percent, down from 34.80 percent in December; nonetheless, the rising cost of living remains a heavy burden for many.

In urban centers like Lagos, citizens are confronting significantly increased rents, with reports of hikes between 100 to 200 percent in various locales. Even those experiencing smaller adjustments are facing a minimum 30 percent rise, which puts a tremendous strain on households, especially given that wages have not kept pace with inflation.

In conclusion, Nigeria’s economic situation is slowly improving under President Bola Tinubu’s leadership, despite the ongoing cost-of-living crisis. Recent GDP growth signals potential recovery, although many citizens still face pressing financial challenges, especially in urban areas like Lagos. The government’s strategic reforms, while initially painful, aim to create a more stable economic environment for the future by focusing on macroeconomic stability and security.

Original Source: newscentral.africa