"Nigeria's Economic Struggles: Soaring Debt, Skyrocketing Inflation, and Surging Unemployment Threaten Prosperity!"

 Shortly after Nigerian President Bola Ahmed Tinubu took office on May 29th, he implemented significant economic changes with the support of experts and international financial organizations.



However, there are deep-rooted issues that need to be addressed before Nigeria's economy can bring prosperity to its people. These changes should not come at the expense of the well-being of citizens or law and order.


Tinubu inherited a struggling Nigerian economy. The GDP growth rate for 2022 was only 3.1%, and it dropped to 2.31% in the first quarter of 2023. Nigeria's recovery from the imbalances caused by the coronavirus pandemic has also been slow. The trade surplus in 2022 was only $2.85 billion, which is much lower than the $54.1 billion surplus in 2014.


Foreign direct investment in Nigeria's economy has decreased from $2.2 billion in 2014 to $0.47 billion in 2022. The budget deficit has risen by 370.54% from 2016 to 2023, and the expenses also during  this time. The cost of servicing the debt has exceeded the government's revenues as public debt has increased tenfold in the span of ten years. In June 2013, the total public debt was N7.93 trillion, and it has now reached approximately N77 trillion.


Over this period, external debt has grown by 473%, while domestic debt has increased by 7,029%. The Central Bank of Nigeria's (CBN) controversial lending to the government is believed to have contributed to high inflation rates, which stood at 22.41% in May.


These challenges, along with insecurity issues, have led to higher food prices, and 63% of the population now lives in extreme poverty. The unemployment rate was 33.3% in 2020, and KPMG estimates that it will rise to 40.6% this year.

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