Nigeria’s President Foresees Economic Recovery Amid Ongoing Challenges

Nigerian President Bola Tinubu announced that the country is approaching economic recovery after two years of a cost-of-living crisis, driven by reforms that included ending a fuel subsidy and liberalizing the naira. The GDP grew by 3.8% in Q4 2024, indicating potential recovery despite ongoing inflation and rent increases. Analysts show cautious optimism as the government aims for improved stability and security for 2025.

President Bola Tinubu of Nigeria expressed optimism about the nation’s economic recovery as it faces the second year of a cost-of-living crisis, stating that the country is nearing the “light at the end of the tunnel.” Since his election in 2023, Nigeria has grappled with escalating inflation following the removal of a costly fuel subsidy and the liberalization of the naira’s exchange rate.

While international entities like the International Monetary Fund have supported these reforms as essential, ordinary Nigerians are enduring some of the most severe economic challenges in a generation. In a recent announcement, President Tinubu highlighted that the past year tested the nation’s resolve, yet through rigorous economic discipline and strategic reforms, Nigeria achieved significant milestones that many considered unachievable.

The Nigerian economy recorded a growth rate of 3.8 percent in the fourth quarter of 2024, marking the fastest expansion in three years. Tinubu pointed to this growth, along with reforms in the foreign exchange sector, a rise in the minimum wage, and increased government revenues, as signs that the country’s strategies are beginning to yield positive results. “After the initial turbulence… the take-off was very cloudy and uncertain,” he remarked, adding that there is now a clearer outlook ahead.

As President Tinubu approaches the midpoint of his first term, analysts have shown cautious optimism based on recent GDP growth figures, suggesting potential price stabilization. When he presented the 55.99-trillion-naira budget for 2025, he emphasized that restoring macroeconomic stability and enhancing security are paramount to the government’s spending priorities, given the challenges posed by ongoing insurgencies in central and northern Nigeria.

The government anticipates improved economic conditions in 2025, with expectations of reduced petroleum imports as domestic refineries ramp up production, coupled with a bumper harvest aimed at decreasing food import reliance. Although the government has revised its January inflation rate to 24.48 percent from December’s figure of 34.80 percent, many citizens continue to feel economic strain, particularly with soaring rents in Lagos, where increases of up to 200 percent have been reported in certain districts.

In summary, President Bola Tinubu asserts optimism in Nigeria’s economic direction as the country undergoes significant reforms amid severe inflation and cost-of-living challenges. While there are early signs of economic recovery reflected in recent GDP growth, many citizens still face hardships, particularly with rising housing costs. The government’s commitment to macroeconomic stability and security will be crucial in navigating the upcoming challenges and ensuring a more stable economic future.

Original Source: www.france24.com