Nigeria is moving towards a more positive future as the country navigates the second year of a cost-of-living crisis, President Bola Tinubu noted on Friday.
The West African heavyweight is facing a surge in inflation, following the decision by Tinubu, elected in 2023, to remove a costly fuel subsidy and let the naira currency float freely on the exchange rate.
Although the government and international organizations like the International Monetary Fund have stated that the reforms were essential, the average Nigerian is facing their most severe economic crisis in a decade.
"The past year presented significant challenges, but through our commitment to fiscal discipline and strategic reforms, we were able to accomplish what many considered to be unattainable," Tinubu said, while signing this year's 55.99-trillion-naira ($37-billion) budget.
Figures released this week indicate that the Nigerian economy expanded by 3.8 percent in the fourth quarter of 2024, marking its highest growth rate in three years.
Tinubu cited the growth, as well as forex reform, an increase in the minimum wage, and a rise in government revenues to 21.6 trillion naira in 2024, as evidence that the changes were having a positive effect.
After the initial turmoil... the take-off was quite hazy and unpredictable," he said. "Today, we notice a glimmer of hope ahead.
As Bola Tinubu approaches the midpoint of his first term as president, some analysts expressed cautious optimism this week upon the release of GDP figures, highlighting price stabilization.
When he presented his budget in December - initially proposed to cost 47.90 trillion naira - Tinubu stated that restoring macroeconomic stability and improved security would be main priorities of the 2025 government spending.
The central and northern parts of Nigeria have been plagued by a 15-year-long jihadist insurgency. Terrorist groups linked to Boko Haram and the Islamic State West Africa Province (ISWAP) have also established a presence in the region.
The government is looking forward to a more productive economy in 2025, with lower petroleum imports as domestic refineries boost production and a bountiful harvest that could decrease reliance on food imports.
The country has revised its inflation data, reducing the official year-over-year inflation rate in January to 24.48 percent, a decrease from the December figure of 34.80 percent.
Many individuals continue to face financial pressure, particularly in Lagos, the economic hub, where rental costs are rapidly increasing.
Tenants and real estate agents have documented rent increases of 100 to 200 percent in certain areas of the large city.
Those who saw smaller hikes were still looking at increases of thirty percent in some instances, a substantial amount as many individuals' salaries have not kept pace with inflation.