Key Points
- Nigeria’s economic policies have led to skyrocketing living costs.
- More than 129 million Nigerians are now living below the poverty line.
- Rising frustration fuels a growing trend of emigration, especially among youth.
Nigeria, the biggest oil producer in Africa, is experiencing a number of economic shocks that have been made worse by policy choices that were intended to have long-term advantages but have instead left the people in an unprecedented state of poverty.
Nigeria’s Economic Crisis Deepens Amid Harsh Reforms
According to business day, the cost of life has skyrocketed due to the elimination of fuel subsidies and the unification of the naira currency rate, making it difficult for many people to survive.
On the World Happiness Index, Nigeria, which was formerly regarded as the “happiest country in the world,” is currently ranked 102nd, down from 95th in 2023.
According to the Economist Intelligence Unit (EIU), Nigeria’s economic instability, insecurity, and governance problems might make it one of the most challenging places to live in the coming five years.
Chidi Okonkwo, a cloth vendor in Lagos’s Balogun Market, claims that customers are not purchasing. “My shop is still filled, but I used to sell out of Christmas fabrics by mid-November’
Japa syndrome: Nigerians seek better opportunities abroad.
Segun, a 29-year-old Lagos graduate, adds, “I look for visa opportunities every day.” “Even though I adore my nation, I have nothing left to offer. I don’t want to look back at my life at fifty and see that I spent it waiting for things to become better. The widespread flight of Nigerians, known as “Japa syndrome,” has become a major trend, with those in the banking, tech, and health sectors leading the way.
At the 34th and 35th combined convocation ceremonies of the Federal University of Technology Akure (FUTA) in Ondo State last week, Tinubu, through Wahab Egbewole, vice chancellor of the University of Ilorin, stated, “As you are all aware, we inherited an economy in freefall, with massive debts from fuel and dollar subsidies.”
“The average Nigerian ended up bearing the brunt of the subsidies, which were intended to aid the impoverished. If nothing radical was done, the nice life we believed we were leading was a fantasy that threatened to bring down the economy.
Civil servant Aisha Suleiman argues, “We recognize the need for reforms, but where are the safety nets?” “How can you devalue the naira, raise electricity rates, and eliminate subsidies all at once?”
In order to generate employment and lessen the economy’s need on oil, economists are advising the government to give priority to investments in digital innovation, renewable energy, and agriculture. Others emphasize that in order to rebuild confidence, better governance, accountability, and transparency are crucial.
