A new report has revealed that President Bola Tinubu’s economic reforms are crushing key industries in Nigeria.
According to the report, soaring prices, collapsing currency, and rising poverty are the order of the day 17 months into Tinubu’s reforms.
“The reforms have created unintended consequences, with soaring energy prices, runaway inflation, a collapsed national currency, rising insecurity, and woeful education, and health infrastructure amidst a cost-of-living crisis that has left more people in poverty.
“According to the National Bureau of Statistics (NBS) monthly inflation report, Nigeria’s inflation rate surged to 33.88 per cent in October 2024, up from 32.70 per cent in September.
“The naira now exchanges at an average of N1,700 per dollar, down from N460 in May 2023. Interest rates have skyrocketed to 26.75 per cent, compared to 11 per cent over the past two years. The unemployment rate rose to 5.3 per cent in Q1 2024, up from 5.0 per cent in Q3 2023, further exacerbating economic challenges.
“Also, rising debt, coupled with dwindling oil revenues, has severely constrained the government’s ability to fund critical infrastructure and development projects, forcing an increased reliance on borrowing.
“Despite the country’s Gross Domestic Product (GDP) remaining around $472bn, according to World Bank estimates, Nigeria’s debt has ballooned to N127tn, according to the Debt Management Office (DMO) as of June 2024, raising sustainability concerns.
“Nigeria also struggles on the security front, as banditry worsens daily, particularly in the North-West and North-Central regions, where attacks on farmers, schools, and rampant kidnappings for ransom have maintained a disturbing trend, despite the military’s determined efforts.
“The escalating insecurity in these regions, which produce more than 50 per cent of the country’s staple foods, including rice, beans, maize, and yam, has further aggravated Nigeria’s food crisis,” part of the report published on Business Hallmark read.
