Nigeria’s economy is in turmoil. Inflation has soared to 34%, the highest level in three decades, while the national currency, the naira, continues its steep decline against the dollar. President Bola Tinubu’s ambitious reform agenda, initially met with optimism, has instead triggered a severe cost-of-living crisis, leaving ordinary Nigerians bearing the brunt.
The End of Fuel Subsidies and Its Fallout
One of Tinubu’s first acts as president was to eliminate the long-standing fuel subsidy, a move economists had advocated for years. The subsidy, which cost Nigeria an estimated $10 billion annually, was widely seen as unsustainable. However, its abrupt removal sent shockwaves through an already fragile economy.
Overnight, petrol prices tripled, driving up transportation costs and sending food prices skyrocketing. The government promised cash transfers to mitigate the impact, but delays and mismanagement left millions without relief. Protests erupted across the country, with citizens decrying the sudden erosion of their purchasing power.
The Naira’s Collapse and Its Ripple Effects
Tinubu’s next major policy shift was to float the naira, ending years of artificial exchange rate controls. The result was a currency freefall. Businesses that rely on imports—including pharmaceuticals, manufacturing, and agriculture—were hit hard as the cost of foreign goods surged. Even basic necessities like bread and rice became unaffordable for many.
The black-market exchange rate, once a parallel system, has effectively become the standard, further destabilizing the economy. Airlines have stopped accepting naira for ticket purchases, and companies are struggling to secure foreign currency for essential imports.
A Harsh Reality for Everyday Nigerians
The crisis has forced Nigerians to adopt drastic coping mechanisms. Middle-class families are cutting back on meals, switching from rice to cheaper staples like garri (cassava flakes). Market traders report steep declines in sales, and long queues at petrol stations have returned—not due to scarcity, but because many can no longer afford to fill their tanks.
The government insists that these painful reforms are necessary for long-term stability, but patience is wearing thin. With inflation threatening to reach 40%, fears of deeper social unrest are growing.
Who Bears Responsibility?
The roots of Nigeria’s economic woes run deep. Years of corruption, mismanagement, and over-reliance on oil revenues have left the country vulnerable. While Tinubu’s reforms aim to address these structural issues, their abrupt implementation has exacerbated short-term suffering.
Critics argue that the government failed to prepare adequate safety nets before rolling out such drastic measures. Meanwhile, reports of lavish spending by political elites have fueled public anger, reinforcing perceptions of a leadership out of touch with its citizens.
Is There a Way Out?
The path forward remains uncertain. If Tinubu can accelerate infrastructure projects, stabilize the foreign exchange market, and deliver promised social programs, Nigeria may yet recover. But if inflation continues unchecked, the risk of widespread unrest looms larger.
For now, Nigerians are relying on resilience and dark humor to weather the storm. As one Lagos trader put it: “We used to complain about high prices. Now we just laugh—because what else can we do?”
