Nigeria is currently experiencing its worst economic crisis in a generation, leading to widespread hardship and anger.

The trade union umbrella group, the Nigeria Labour Congress (NLC), has organised nationwide protests on Tuesday, calling for more action from the government.

A litre of petrol costs more than three times what it did nine months ago, while the price of the staple food, rice, has more than doubled in the past year.

These two figures highlight the difficulties that many Nigerians are facing as wages have not kept up with the rising cost of living.

Like many nations, Nigeria has experienced economic shocks from beyond its shores in recent years, but there are also issues specific to the country, partly driven by the reforms introduced by President Bola Tinubu when he took office last May.

How bad is the economy?
Overall, annual inflation, which is the average rate at which prices go up, is now close to 30% - the highest figure in nearly three decades. The cost of food has risen even more - by 35%.

However, the monthly minimum wage, set by the government and which all employers are supposed to observe, has not changed since 2019, when it was put at 30,000 naira - this is worth just $19 (£15) at current exchange rates.

Many are going hungry, rationing what food they have or looking for cheaper alternatives.

In the north, some people are now eating the rice that is normally discarded as part of the milling process. The waste product usually goes into fish food.

Widely shared social media videos indicate how some are reducing portion sizes.

One clip shows a woman cutting a fish into nine pieces rather than the average four to five. She is heard saying her goal is to ensure her family can at least eat some fish twice a week.

What is causing Nigeria's economic crisis?
Inflation has soared in many countries, as fuel and other costs spiked as a result of the war in Ukraine.

But President Tinubu's efforts to remodel the economy have also added to the burden.

On the day he was sworn in nine months ago, the new president announced that the long-standing fuel subsidy would be ending.

This had kept petrol prices low for citizens of this oil-producing nation, but it was also a huge drain on public finances. In the first half of 2023, it accounted for 15% of the budget - more than the government spent on health or education. Mr Tinubu argued that this could be better used elsewhere.

However, the subsequent huge jump in the price of petrol has caused other prices to rise as companies pass on transportation and energy costs to the consumer.

One other factor that is pushing up inflation is an issue that Mr Tinubu inherited from his predecessor, Muhammadu Buhari, according to financial analyst Tilewa Adebajo.

He told the BBC's Newsday programme that the previous government had asked the country's central bank for short-term loans to cover spending amounting to $19bn.

The bank printed the money, which helped fuel inflation, Mr Adebajo said.

What has happened to the naira?
Mr Tinubu also ended the policy of pegging the price of the currency, the naira, to the US dollar rather than leaving it up to the market to determine on the basis of supply and demand. The central bank was spending a lot of money maintaining the level.

But scrapping the peg has led the naira's value to plunge by more than two-thirds, briefly hitting an all-time low last week.

Last May, 10,000 naira would buy $22, now it will only fetch around $6.40.

As the naira is worth less, the price of all imported products has gone up.

When will things get better?
While the president is unlikely to reverse his decisions on the fuel subsidy and the naira, which he argues will pay off in the long run by making Nigeria's economy stronger, the government has introduced some measures to ease the suffering.

Nigeria's Vice-President Kashim Shettima announced the establishment of a board charged with controlling and regulating food prices. The government also ordered the national grain reserve to distribute 42,000 tonnes of grains, including maize and millet.

This is not the first time the government has said it is distributing aid to poor and vulnerable Nigerians, but labour unions have often criticised the government's method of food distribution, saying much of it does not reach poor families.

The government has also said it is working with rice producers to get more of it into markets and customs officials have been instructed to cheaply sell off bags of the grain that they have seized. In a sign of how bad things are, on Friday this led to a crush in the biggest city, Lagos, which killed seven people, local media report. These hand-outs have now been halted.

The rice was seized under the previous government, which banned imports of rice to encourage local farmers to grow more. That ban was lifted last year in at attempt to bring down the cost but because of the fall in the value of the naira, that has not worked.

Around 15 million poorer households are also receiving a cash transfer of 25,000 naira ($16; £13) a month, but these days that doesn't go very far.

https://www.bbc.co.uk/news/world-africa-68402662

So blunt (headline) so true.

NOT TRUE

BBC and sensational news

This is the same BBC that said my ogas election was free and fair

Now they turn around to gaslight him like this?

Treason

When Customs rice finished our eyes go open say no grain of rice exist for the silos were dey Nigeria.

BBC News writing like Nigeria News
No mention of insecurity that forced farmers out of their farms thereby preventing them from producing food
No mention that Tinubu also printed his own money just like buhari and part of the money he printed was used to buy yatch

Tinubu has ruined Nigeria.

Rutherford2019:
BBC News writing like Nigeria News
No mention of insecurity that forced farmers out of their farms thereby preventing them from producing food.

Don't mind them. They couldn't single out this serious problem you rightly outlined there but they could attribute the current economic hardships in Nigeria to Russian - Ukrainian war

Rutherford2019:
BBC News writing like Nigeria News
No mention of insecurity that forced farmers out of their farms thereby preventing them from producing food
No mention that Tinubu also printed his own money just like buhari and part of the money he printed was used to buy yatch

Where's your evidence that he printed money and show us the evidence that a yatch was bought.

How can the BBC be attributing the economic hardship in Nigeria today to the Ukrainian war?

Una go explain tire.

This is just the beginning.

The entire world is in a mess. Mortal sins destroy a civilization.

This is just 2023 report. If they use 2024(January & February) prices e go too loud. BAT on the beat😁

He told the BBC's Newsday programme that the previous government had asked the country's central bank for short-term loans to cover spending amounting to $19bn.

The bank printed the money, which helped fuel inflation, Mr Adebajo said.He told the BBC's

Buhari and Emefiele set the trap for the present government.

Okay.

V

This is no joke anymore...The heat wave of hunger in the country is choking and overwhelming. Imagine bag of rice is now 70k+ ...How much come be minimum wage...I do wonder how people without job are coping...

The standard of Living in the country has really dropped... These days you see people with long neck like that of kwashiorkor walking in despair, red eyes and angry faces everywhere...

This country need serious intervention...Every body go sha dey alright las las

Racoon:
How can the BBC be attributing the economic hardship in Nigeria today to the Ukrainian war?

So that's the only thing your head was able to comprehend in the article by Nkechi Ogbonna.

Tinubulation. Badluck bulabu.

Pathetic

Are BBC tired of licking Tinubu's arse

Same old story. Nothing new.

Racoon:
How can the BBC be attributing the economic hardship in Nigeria today to the Ukrainian war?

lol e choke

I have said it again and again on this platform

DIVERSIFY THE ECONOMY

DIVERSIFY THE ECONOMY

CRUDE OIL IS A BLESSING A CURSE

THE CURSE IS MUCH MORE BRUTAL THAN THE BLESSING

I have said it here many many times on nairaland what Nigeria must do https://www.nairaland.com/7989133/naira-rebounds-banks-offload-excess/4#128260034



Convert all NYSC CAMPS into cash crops processing mega centres

Instead of corpers shouting corper wee wee up and down employ them to run these mega farms and produce Made in Nigeria cash crops

DO you know much land Nigeria has in the south

Till today I have never seen a crop in my life THAT CANNOT GROW IN NIGERIA.

Made in Nigeria bananas
Made in Nigeria mangoes
Made in Nigeria pineapples

Made in Nigeria cocoa

Even if it’s just one made in Nigeria something that is flooded European markets with

Then that’s all you need TO MAKE THE DOLLAR almost as strong as the naira .

The first paragraph just told you there was a time in Nigeria in 1980 where naira was stronger than dollar and that time Nigeria exported more than it imported and thus the favourable balance of trade even made it have 9 billion dollars extra

THIS IS NOT SOME ECONOMIC THEORY OR SOME TRIAL AND ERROR

DIVERSIFY THIS ECONOMY FOR GODS SAKE

LEAVE CRUDE OIL ALONE , humans eat and humans eat most crops , even cocoa that cannot be eaten directly
It is needed for making chocolates coffee

THE NIGERIAN EXPORT SHOULD BE MERGED INTO NYSC , and nysc camps should be converted to these mega farms and tons and tons of crops should be processed to be shipped out

FG should go to European countries and lobby each country to buy even if it’s made in Nigeria bananas, that are being processed and prepared in advance from the NYSC camps .

Any embassy or country that doesn’t want these MADE IN NIGERIA products should be closed down

Any country that doesn’t mind buying Nigerian oil but when it comes to made in Nigeria products it’s reluctant is an enemy of Nigeria .

This is the only way NIGERIA CAN escape poverty

PLEASE IF ANYONE CAN READ THIS

PLS I BEG YOU IN THE NAME OF GOD I AM FROM THE FUTURE . NIGERIA BECAME WORSE THAN WHAT IT CURRENTLY IS RIGHT NOW

NIGERIA pls diversify this company all oil licenses of any oil company should be revoked and tax free concessions given to AGRICULTURAL companies

Nigeria please leave crude oil alone

Sunshine is free
Rainfall is free
Photosynthesis is free

These are the 3 things you need to grow any cash crop in the whole world and feed the whole world if you are serious with it

YOU CAN SELL ANYTHING TO EARN FOREX IN THE INTERNATIONAL MARKET , it’s not only refined oil you sell there

Please convert all Nysc camps into these mega farms and start churning out tons of materials to earn good money outside

NIGERIA PLS LEAVE CRUDE OIL ALONE

THE UK import bananas all the way from Panama and South Africa

Please which country is closer to the uk.

How big is Panama and how much land does South Africa that tescos stores in the uk import all the way down South Africa for bananas

Why can’t there be made in Nigeria bananas

Why this oil curse for Gods sake

How much green land do we have in the south of Nigeria that bananas fresh good ones can’t be planted to be exported in tons

Convert all nysc camps to farms now , double allawee to corpers that want to work leave the ones who don’t want to go and be looking for thier oil corporate jobs

After converting the nysc camps into mega farms Merge nysc and the Nigerian export council and EXPORT all your wahala and earn cool forex

Find a country and export good fresh foods to this country

No one can tell me this is impossible
If elections materials can get to every nook and cranny of this country

You can’t tell me state sponsored Mega farms are impossible

ALL THE TRILLIONS SAVED FROM FUEL SUBSIDY. Invest it in agriculture and become a sole supplier of foreign countries different types of food

Tomatoes
Peepers
Cashews
Bananas
Carrots

Do you know how much crops you can grow for free and make FREE DOLLARS FOR free

Who told these guys oil is the only thing you can sell

Once again scroll back up and check the first paragraph soemthing used to happen to Nigeria before 1980

After 1980 it got carried away and chased something which is crude oil

And 50 years later Nigeria life has never remained the same

Please diversify this economy now

Besides carrots takes 3 months to grow
Cucumbers etc

There are some crops that if Nigerian becomes a sole exporter to selected foreign countries growing them would be light work

Infact self nnpc should be forced to buy shares in this new mega farms

Leave oil alone

from the article

On the day he was sworn in nine months ago, the new president announced that the long-standing fuel subsidy would be ending.

This had kept petrol prices low for citizens of this oil-producing nation, but it was also a huge drain on public finances. In the first half of 2023, it accounted for 15% of the budget - more than the government spent on health or education. Mr Tinubu argued that this could be better used elsewhere.

Strike 1

But the fact is, if we had removed the subsidy in 2012, we would not be here with the above problem

One other factor that is pushing up inflation is an issue that Mr Tinubu inherited from his predecessor, Muhammadu Buhari, according to financial analyst Tilewa Adebajo.

He told the BBC's Newsday programme that the previous government had asked the country's central bank for short-term loans to cover spending amounting to $19bn.

The bank printed the money, which helped fuel inflation, Mr Adebajo said

Ways and means...

Mr Tinubu also ended the policy of pegging the price of the currency, the naira, to the US dollar rather than leaving it up to the market to determine on the basis of supply and demand. The central bank was spending a lot of money maintaining the level.

But scrapping the peg has led the naira's value to plunge by more than two-thirds, briefly hitting an all-time low last week.

Last May, 10,000 naira would buy $22, now it will only fetch around $6.40.

Good article, but misses the ultimate point...all of this is made possible by our revenues relying on the worst foundation they can rely on...the price of oil.

Even the price of Condoms also increased from 700--1500

This government has made traveling abroad look like making paradise. It's not everyone that love to relocate out of Nigeria but this government has made staying behind look like you are the most unfortunate human being on earth. It's not everyone thatt japaa that really want to but staying behind now looks like a curse

benuejosh:
NOT TRUE

rule 11

mynd44
seun
OAM4j
dominique
nlfpmod

Summary is that the cocaine sniffer no sabi work.

Nawa o...

Funny thing is that the UK economy isn't any better at this point in time. There's high inflation rate and infrastructure deficit in some areas. The NHS is a complete mess. You can't walk into the hospital as we do here except on emergency.

EmiloCorn:
This is the same BBC that said my ogas election was free and fair

Now they turn around to gaslight him like this?

Treason