Between 2023 and 2025, Nigeria undertook significant economic reforms, marked by the removal of fuel and exchange rate subsidies. While these changes were crucial for long-term stability, they had immediate adverse effects, leading to soaring inflation and declining business confidence.

Rising Inflation and Currency Volatility

By January 2025, domestic inflation escalated from 22.79% in June 2023 to 23.13%, peaking at 34.80% in December 2024 before a Consumer Price Index (CPI) rebasing in 2025. The exchange rate surged from N623.24/$ in mid-2023 to N1,501.45/$ by early 2025, with the Central Bank of Nigeria’s Monetary Policy Rate (MPR) jumping from 18.5% to 27.5%.

These drastic policy shifts resulted in declining household welfare and a shaky business environment, leaving many Nigerians uncertain about their economic prospects.

Signs of Recovery Amid Fragile Stability

Despite these challenges, early 2025 saw some signs of recovery:

Rebased inflation figures indicated a decline, largely due to new measurement methods rather than actual economic relief.

Exchange rate stability improved, as the gap between official and parallel market rates narrowed.

However, ongoing political instability and governance issues continue to jeopardize investor confidence and economic advancement.

The Rivers State Crisis: A Major Concern

A significant risk looms from the political crisis in Rivers State, where President Bola Ahmed Tinubu’s administration declared a state of emergency. While intended as a security measure, this move raises concerns about constitutional integrity and governance.

This intervention has unsettled foreign investors, who fear increasing governmental control over legislative and judicial processes. Upholding legal contracts and ensuring judicial independence are crucial for attracting long-term foreign investment.

Historical Lessons: A Cautionary Reminder

The power struggles in Rivers State reflect past political crises that have hampered Nigeria’s democratic development—most notably in 1962, which precipitated military rule. Today’s political leaders must act with caution to prevent history from repeating itself.

As Emma Goldman said, “Wealth means power: the power to subdue, to crush, to exploit.” The contest for control over resource-rich states like Rivers distracts from Nigeria’s pressing economic challenge: alleviating the multidimensional poverty affecting 130 million Nigerians.

A Call for Economic Transformation

To navigate these turbulent times, the government must pivot from political infighting to economic transformation by:

Strengthening democratic institutions and restoring investor confidence.

Prioritizing poverty reduction and fostering economic inclusion.

Building a future-ready economy to position Nigeria as Africa’s leading nation.

The Path Forward

Nigeria’s Renewed Hope Agenda must extend beyond politics to achieve tangible economic progress. Success will be measured not by political dominance but by the number of Nigerians lifted out of poverty.

This is the mandate for the nation!