Key points:
- Tinubu claims economic reforms are showing results
- Nigeria’s GDP grew 3.8% in Q4 2024, the highest in three years
- Inflation remains a challenge, but forex and revenue reforms continue
PRESIDENT Bola Tinubu has expressed confidence in Nigeria’s economic recovery, stating that the country is approaching the ‘light at the end of the tunnel’ despite ongoing economic hardships. Speaking on Friday as he signed the 55.99-trillion-naira ($37bn) budget, Tinubu highlighted recent economic growth as a sign that his reforms were beginning to take effect.
Nigeria has faced soaring inflation and economic struggles since Tinubu took office in 2023. His government implemented major reforms, including the removal of fuel subsidies and the liberalisation of the naira’s exchange rate. While the IMF and other global institutions have backed these moves, many Nigerians have endured the worst cost-of-living crisis in decades.
GDP growth sparks optimism
Despite these challenges, Nigeria’s gross domestic product (GDP) grew by 3.8 percent in the fourth quarter of 2024, the fastest pace in three years. Tinubu pointed to this growth, along with an increase in government revenues to 21.6 trillion naira and improvements in the foreign exchange market, as proof that his administration’s policies were working.
‘The past year tested our resolve, but through economic discipline and strategic reform, we achieved what many deemed impossible,’ Tinubu said.
He also cited recent efforts to increase the minimum wage and reduce reliance on imported fuel, with domestic refineries expected to ramp up production in 2025.
Challenges persist despite economic gains
While the government remains hopeful for better economic performance in 2025, challenges persist. Inflation, which reached 34.8 percent in December 2024, was revised downward to 24.48 percent in January, but many Nigerians continue to struggle with rising costs, especially in major cities like Lagos.
Housing costs have surged, with rent increases of 100-200 percent recorded in some areas. Even those facing smaller hikes have reported increases of at least 30 percent, making it difficult for wages to keep pace with living expenses.
Security and economic stability in focus
As Tinubu approaches the halfway mark of his first term, his administration is also prioritising security improvements alongside economic stability. Parts of northern and central Nigeria continue to grapple with a 15-year insurgency, with armed groups linked to Boko Haram and Islamic State West Africa Province (ISWAP) expanding their influence.
The government remains optimistic that economic improvements in 2025, along with a stronger agricultural output and reduced food imports, will help stabilise the nation. However, for many Nigerians, the cost-of-living crisis remains a daily struggle.
