Although it’s projected that the Nigerian economy is on its way to growth in 2025, data shows that inflation wiped out 35 per cent of household income in 2024, plunging 10 million Nigerians into extreme poverty.
“However, beneath these figures lies a stark reality. Inflation wiped out 35 per cent of household income in 2024, pushing 10 million Nigerians into extreme poverty.
“With a survival threshold of N103,000 monthly ($2.15/day), the yet-to-be-implemented N70,000 minimum wage offers little relief, while corps members earned just N33,000 as of December 2024”, said Bismarck Rewane, managing director of Financial Derivatives Company (FDC) Limited..
According to it, “2025 has begun on strong footing, with projected GDP growth of 3.6 per cent, a stable naira at N1,660/$, and a current account surplus of 5.2% of GDP driven by trade gains.
“Inflation may ease, but the pressure remains. Resilience, however, is emerging from Nigeria’s informal sector and tech-driven innovation. Fintech, e-commerce, and digital platforms are filling economic gaps and driving growth. To sustain this, Nigeria must prioritize digital infrastructure and policy reforms to unlock the full potential of its most dynamic sector. The digital economy is no longer optional—it’s essential”, said Rewane.
According to him, in the past three decades, Nigeria has clung on to the notion of the three in one silver bullet which is reducing imports will increase domestic production, accelerate exports, and strengthen the naira—a magic wand of some sort! This mercantilist view (imports are harmful while exports are beneficial) which has led to extensive use of import restrictions seems to have done more harm than good to the economy.