Six months into President Bola Tinubu’s tenure, the cost of living in Nigeria has continued to rise, with the poverty rate increasing to 46% in 2023. Inflation rose to 27.33% in October 2023 and 28.20% in November, impacting household spending. Food inflation is caused by increased prices of oil, fat, bread, cereals, fish, potatoes, yam, fruits, meat, vegetable, milk, cheese, and eggs.
Nigerians are concerned about the rising food prices, and the President and his team have been consistent in ensuring the country’s recovery. Some believe that Tinubu’s administration should focus on policies that make life easier for the masses, such as reducing petrol prices and reviewing the minimum wage for civil servants.
Economic expert Teriba emphasized the need to stabilize the foreign exchange market to ensure economic growth and competitiveness. Volatility in the exchange rate, especially in the official market, deters business decisions and delays investment outlays. This volatility exacerbates inflation and perpetuates food and energy price shocks, erode consumer living standards and business compatibility.
The key question for the outlook in 2024 is whether the government can end the volatility and achieve growth. However, the direction of the 2024 budget shows adequate provisions for mitigating the adverse effects of some of the government’s reforms on living costs.