Nigeria at a Crossroads: Rising Inflation, Political Crisis, and Uncertain Future
Nigeria is facing a critical moment in early 2025 as political instability and economic hardship continue to grip the nation. While the ruling All Progressives Congress (APC) remains optimistic about restoring stability, the realities on the ground paint a troubling picture.
With inflation soaring, political tensions rising, and economic policies failing to deliver relief, the question on many Nigerians’ minds is: Where is the country headed?
Political Instability and Governance Challenges
The recent crisis in the Lagos State House of Assembly has further exposed the growing cracks within the APC. The removal of former Speaker Mudashiru Obasa by 32 lawmakers on January 13 has led to deep divisions among party leaders and lawmakers. Despite efforts by President Bola Tinubu to mediate the crisis, lawmakers remain defiant, insisting that newly appointed Speaker Mojisola Meranda should retain her position.
This political battle is significant because Lagos has historically been Tinubu’s stronghold. Analysts believe that the ongoing resistance against his directive signals a shift in political power dynamics, raising concerns about the future of party cohesion in the state and beyond.
Nigeria’s Economic Woes Worsen
Beyond political instability, the Nigerian economy is in turmoil. Inflation has skyrocketed to 34.8%, making it the highest in decades. The removal of fuel subsidies, while intended to reduce government spending, has led to an increase in the cost of living. Transport fares have surged, food prices have doubled, and many businesses are struggling to survive.
Additionally, the naira continues to weaken against the US dollar, with exchange rates fluctuating between ₦1,500 and ₦1,800 per dollar in the parallel market. This has made imported goods more expensive, further worsening inflation.
The oil sector, which remains the backbone of Nigeria’s economy, is also in crisis. The country loses over 400,000 barrels of oil daily to theft and illegal bunkering, resulting in billions of dollars in lost revenue. Despite government efforts to curb this menace, oil theft remains rampant, weakening Nigeria’s economic stability.
Unemployment and Mass Exodus of Professionals
The economic downturn has led to widespread job losses, particularly in the private sector. Many businesses are closing due to high production costs and declining consumer purchasing power. Youth unemployment remains a major concern, with over 40% of young Nigerians jobless.
In response, a growing number of skilled professionals are leaving the country in search of better opportunities abroad. The healthcare sector, in particular, has been hit hard, with thousands of doctors and nurses migrating to Europe, the US, and Canada. This brain drain threatens to weaken key industries and slow down national development.
As economic hardship worsens, protests have erupted in several parts of the country. Frustrated citizens are demanding government intervention to address rising food prices, unemployment, and insecurity. Experts warn that if urgent measures are not taken, Nigeria could experience widespread civil unrest, similar to the 2020 #EndSARS protests.
Meanwhile, insecurity continues to pose a serious threat to economic recovery. Banditry, insurgency, and kidnappings have made it difficult for farmers to work, contributing to food shortages. Many businesses are also relocating to safer regions, further weakening economic activity.
What Can Be Done?
Economists and analysts have proposed several solutions to Nigeria’s current crisis:
The Central Bank of Nigeria (CBN) must implement strong policies to stabilize the naira and curb inflation. The government must invest in agriculture and manufacturing to reduce dependence on oil.
Security must be improved to restore investor confidence and ensure farmers can return to work.
Targeted economic relief programs should be introduced to support low-income Nigerians and businesses.
Stronger anti-corruption measures are needed to prevent further revenue losses in the oil sector.
Can Nigeria Overcome This Crisis?
The next few months will be critical in determining Nigeria’s future. While the government has promised reforms, many Nigerians remain skeptical about whether real change will happen. If urgent action is not taken, the country risks falling into deeper economic hardship and prolonged political instability.
The question remains: Can Nigeria navigate this crisis, or is the nation heading toward further turmoil? Time will tell.