Nigerians are cautiously optimistic about the country’s economic prospects in 2025, despite the hardships faced in 2024.
The domestic production of petroleum products by Dangote Refinery and the restart of Port Harcourt and Warri Refineries have brought a glimmer of hope to Nigerians.
These developments have the potential to reduce fuel imports, enhance energy security, and stabilize fuel prices in the long term.
However, the country still grapples with high inflation, which soared to 34.60% and 39.93% for headline and food inflation, respectively, in November 2024.
The cost of living has become unbearable for many Nigerians, with food prices quadrupling and fuel prices increasing by over 300% since the fuel subsidy removal.
Economic Challenges for Nigerians in 2024;
– Rising Debt Profile: Nigeria’s debt stock rose significantly to over N134 trillion, with a 22.99% increase in the first quarter of 2024 alone.
– Fuel Price Hikes: The country experienced at least three fuel price hikes, with prices growing from N198 per liter to between N935 and N1,115.
– Naira Volatility: The Naira lost significant value against the dollar, depreciating by N685.55 between December 12, 2023, and December 30, 2024.
– Interest Rate Hike: The Central Bank of Nigeria raised interest rates to 27.50%, increasing borrowing costs and hindering investment and consumption.
Despite these challenges, Nigeria achieved some significant economic feats in 2024, including:
– Resilient Economic Growth: The country recorded a 3.46% GDP growth in the third quarter of 2024.
– Minimum Wage Increase: President Bola Ahmed Tinubu signed a new minimum wage of N70,000.
– Gradual Stabilization of the Naira: The introduction of the Electronic Foreign Exchange Matching System (EFEMS) helped stabilize the Naira.
Looking ahead to 2025, experts predict a mix of hope and despair.
While the emergence of domestic refineries and continued economic growth offer reasons for optimism, significant challenges remain, including high inflation, unemployment, and political uncertainty.
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