As the sun sets on 2024, Nigerians find themselves grappling with a harsh economic reality that has made survival a feat of resilience. This year has been one of immense turbulence, marked by policies that, while heralded as reforms, have left the masses in excruciating hardship. The government, in its bid to “reform” the economy, has instead orchestrated a crescendo of suffering, plunging the nation into what can only be described as an economic maelstrom.
The removal of the fuel subsidy, once considered a necessary fiscal adjustment, has proven to be an unmitigated disaster for the average Nigerian. With petrol prices skyrocketing to unprecedented levels, the ripple effects have been catastrophic. Transportation costs have soared beyond reach, triggering a corresponding hike in the prices of basic goods and services. For a country where public transport forms the lifeblood of daily life, this singular policy has eroded disposable incomes and left millions stranded—literally and figuratively.
To compound these challenges, the hike in electricity tariffs has plunged many households and businesses into darkness. Production costs for manufacturers have risen sharply, driving small and medium enterprises—the backbone of the Nigerian economy—to the brink of collapse. These factors, combined with persistent power outages, have not only stifled economic growth but also further entrenched poverty in a nation already teetering on the edge.
But perhaps the most devastating blow to Nigerians has been the unprecedented freefall of the naira. What began as a controlled devaluation has spiraled into a financial nightmare, with the naira plummeting from under ₦500 to the dollar in May 2023 to over ₦1,700 by late 2024. This precipitous devaluation has unleashed a tidal wave of inflation, pushing the cost of essential commodities beyond the reach of ordinary citizens. The price of food—a fundamental human necessity—has more than quadrupled in a single year, leaving many to face the grim specter of hunger. For the average Nigerian, survival has become a daily struggle, with purchasing power dwindling to historic lows. Even the new ₦70,000 minimum wage, meant to provide relief, has been rendered meaningless by the relentless march of inflation—and this, in a country where many states and businesses have yet to implement it.
The economic statistics tell a damning tale: under this government’s watch, the naira has earned the ignoble distinction of being the world’s worst-performing currency in 2024. Yet, beyond the cold numbers lies the untold suffering of millions. Families can no longer afford to put food on the table, businesses are shuttering their doors, and hope is fading fast. This dire state of affairs is a direct consequence of the government’s insensitivity to the plight of its citizens. The so-called reforms, lacking the requisite social safety nets, have not brought about any tangible benefits—only misery and despair.
The government’s policy of floating the naira is perhaps the most egregious misstep of all. For a developing, import-dependent nation like Nigeria, such a policy was always bound to yield disastrous consequences. Floating a currency without robust economic fundamentals invites volatility, and in Nigeria’s case, it has triggered an uncontrollable spiral. The consequences of this approach are glaring. Imported inflation has surged as a result of Nigeria’s heavy reliance on imports, making the cost of goods exorbitantly high and further compounding inflationary pressures. The value of savings has been eroded, while investors, wary of the naira’s instability, have fled to safer markets. The devaluation has significantly increased the cost of debt servicing, given that much of Nigeria’s external debt is denominated in foreign currencies, thereby straining an already fragile fiscal position. Additionally, the volatility of the naira has created a climate of uncertainty, deterring foreign and local investments that are critical for economic recovery.
If the government is serious about reversing this trend and alleviating the suffering of its people, it must take decisive action in 2025. First, it must rethink its policy of floating the naira. A managed exchange rate regime, coupled with targeted interventions to stabilize the currency, would provide much-needed relief. Furthermore, the government must prioritise reducing import dependency by investing heavily in domestic production and infrastructure. Strengthening local industries, particularly agriculture and manufacturing, is essential to creating jobs and ensuring food security. Robust social safety nets must be implemented to shield vulnerable populations from the worst effects of economic reforms. Conditional cash transfers, food subsidy programs, and affordable public transportation initiatives would go a long way in easing the burden on ordinary Nigerians. The government must also expedite the implementation of the new minimum wage across all states and sectors, ensuring that workers are adequately compensated for the rising cost of living.
Finally, fiscal discipline and transparency must be at the forefront of governance. The rampant leakages in public finances must be plugged, and resources must be channeled towards sectors that drive inclusive growth. Corruption, the perennial bane of Nigeria’s development, must be tackled head-on if the nation is to regain the trust of its citizens and international partners.
As we approach 2025, Nigeria stands at a crossroads. The current path of economic mismanagement and insensitivity can only lead to further hardship and uncertainty. But with visionary leadership and bold policy choices, the tide can yet be turned. The government must rise to the occasion and put the welfare of Nigerians above all else. The time for empty rhetoric is over; now is the time for action. If Nigeria is to reclaim its promise, the government must lead with competence, compassion, and a clear vision for the future. The people of this great nation deserve no less.
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