NIGPOST Special Review of 2024 and Projections for 2025
By Abdulmajeed Abdullateef
As we stand on the threshold of 2025, one thing seems clear: the year ahead promises more economic challenges for the average Nigerian. The year 2024, marked by widespread economic hardship, is leaving behind an ominous legacy, one that suggests even deeper poverty for many in 2025.
This situation stems from several critical factors that have shaped Nigeria’s economy over the past year. Under President Bola Ahmed Tinubu’s administration, 2024 was the first full year to showcase his government’s fiscal and monetary policies. It also served as a litmus test for the much-touted “Renewed Hope” agenda.
Unfortunately, as the year draws to a close, many Nigerians feel that hope remains elusive. Instead, eight key economic variables have dominated discussions, each contributing to the current economic woes:
Budget Deficits
Volatile Exchange and Interest Rates
Soaring Fuel Prices
Declining Crude Oil Production and Export
Runaway Inflation
Food Insecurity
Struggling Manufacturing Sector
Cash Scarcity
A Grim 2024
2024 will be remembered as a year of increasing economic disparity. While the wealthiest one percent of Nigerians grew richer, the remaining 99 percent struggled to make ends meet. The banking sector, originally intended to drive economic growth, has been criticized for prioritizing profits over public welfare, with some banks reporting record earnings while depositors face hardships.
Major predictions for 2024, including inflation surpassing 30%, unfulfilled expectations of improved power supply, and skyrocketing fuel prices (ranging from ₦1,100 to ₦1,200 per litre), sadly proved accurate. The departure of manufacturing giants like GSK and Procter & Gamble underscored the dire situation in the industrial sector.
2025: Bracing for Impact
If 2024 was challenging, 2025 may prove even more daunting. The Federal Government’s 2025 budget is riddled with unrealistic assumptions, including crude oil production targets of 2.06 million barrels per day at $77 per barrel and an exchange rate of ₦1,400/$1. These figures, experts warn, are overly optimistic and likely to lead to larger deficits and increased borrowing.
Additionally, inflation is projected to remain high, and the lack of significant investment in infrastructure, particularly power supply, could exacerbate existing issues. With the majority of Nigerians facing scarcity in essential commodities—food, fuel, jobs, and even cash—the road ahead appears bleak.
Poverty: An Inescapable Reality
For many Nigerians, poverty is no longer an abstract concept but a daily reality. As the nation grapples with soaring prices and dwindling purchasing power, prayer and resilience have become the only sources of solace for millions.
Conclusion
As we move into 2025, Nigerians must prepare for a year filled with uncertainties. Policymakers must rethink strategies and implement sustainable measures to address the deepening economic crisis. While hope is a powerful motivator, action and accountability are what the nation needs most.
Stay tuned to NIGPOST for more in-depth analysis and updates on Nigeria’s economic landscape.
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