Tinubu Promises Economic Recovery Amidst Ongoing Challenges in Nigeria

President Tinubu assured Nigerians of economic recovery, highlighting GDP growth of 3.8 percent in Q4 2024 and ongoing reforms. While inflation remains high, the government anticipates improved conditions in 2025 amid challenges such as rising rents and ongoing insurgency threats. Cautious optimism prevails as Tinubu emphasizes the need for macroeconomic stability and security in future budget planning.

President Bola Tinubu affirmed Nigeria’s steady progress toward economic recovery despite facing a significant cost-of-living crisis for the second consecutive year. The country has been dealing with escalating inflation following Tinubu’s 2023 initiative to eliminate a costly fuel subsidy, coupled with the decision to allow the naira to float against other currencies.

Both the Nigerian government and international institutions like the International Monetary Fund assert that these structural reforms were essential, albeit challenging for the Nigerian populace, who are currently experiencing some of the most arduous economic conditions in decades. During the signing of the 2024 budget, valued at 55.99 trillion naira ($37 billion), Tinubu remarked on the resilience demonstrated over the past year as the nation undertook necessary reforms.

Recent economic data indicated that Nigeria’s GDP grew by 3.8 percent in the final quarter of 2024, representing the most robust growth observed in three years. President Tinubu attributed this growth to proactive economic reforms, an increase in minimum wage, and a rise in government revenues to 21.6 trillion naira in 2024.

As he nears the midpoint of his first term, analysts have expressed cautious optimism regarding the GDP figures, recognizing signs of price stabilization. In December, when unveiling the budget initially projected at 47.90 trillion naira, Tinubu emphasized that macroeconomic stability and enhanced security would be focal points of government expenditure for 2025.

The northern and central regions of Nigeria have been affected by a 15-year-long insurgency, with groups connected to Boko Haram and the Islamic State West Africa Province broadening their influence. The government anticipates that improved economic conditions in 2025 will be supported by increased domestic refinery production and a bountiful agricultural season diminishing dependency on imported goods.

Moreover, Nigeria revised its inflation statistics, adjusting the year-on-year rate for January to 24.48 percent, significantly down from 34.80 percent in December. Nevertheless, many Nigerians continue to grapple with soaring living costs, particularly in Lagos, where rents have surged dramatically. Reports indicate that rent prices in certain districts have increased by 100 to 200 percent, while even more moderate increases are straining tenants’ finances as wages have failed to keep pace with inflation.

In summary, President Bola Tinubu is optimistic about Nigeria’s economic recovery as evidenced by recent GDP growth and ongoing reforms. Despite challenges posed by high inflation and cost-of-living issues, the government is focused on ensuring macroeconomic stability and security. However, the substantial rise in living costs, particularly in Lagos, remains a pressing concern for many Nigerians.

Original Source: newscentral.africa