Economic Hardship: Cost Of Living Crisis Is Deeper Due To Tinubu's Reforms — Report
The largest economy in Africa, Nigeria, is experiencing its worst cost of living crisis in decades. Since taking office in May of last year, President Bola Tinubu has implemented drastic yet unpopular economic reforms.
Nigeria imports fuel and food, and as it emerged from a COVID-19-induced recession in 2020, it was hit hard by rising global prices as a result of the conflict between Russia and Ukraine.
In order to strengthen government finances, win back investor trust, and jump-start the economy, President Bola Tinubu—who ran on a platform of “Renewed Hope”—removed exorbitant fuel subsidies and foreign exchange controls.
However, as a result of severe dollar shortages, inflation has surged to its highest level in thirty years and the value of the naira is falling to record lows. The cost of food, cooking gas, fuel, medications, and public transportation has skyrocketed, placing a strain on household budgets.
Tinubu took over an economy beset by record debt, high unemployment, low oil production, subsidies draining public coffers, and power shortages stifling economic growth.
“With about 8 percent of Nigerians deemed food insecure, addressing rising food insecurity is the immediate policy priority,” the International Monetary Fund said on March 4 after a staff visit.
Blessing Joseph, an Abuja resident, makes enough money weaving purses, sandals, and jewelry to pay for her son's schooling and food. But since November, she and her son have been going to bed hungry every night as a result of her customers stopping to visit.
Joseph said that while she could easily make N30,000 a week last year, she will now be lucky to make N5,000.
“People used to place orders. I'll design for them, sometimes even (for) weddings I'll make souvenirs for them, but now those orders are not coming,” said the 29-year-old Abuja resident.
“It has been very, very difficult, especially that I have a son and he needs to go to school, he needs to eat.”
According to the report, the issues facing Nigeria have also permeated corporate boardrooms.
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