Nigeria’s Economic Crisis: How It’s Affecting Daily Life In 2025

Many Nigerians can`t afford food anymore

1.Introduction

Nigeria is currently facing one of its worst economic crises in recent years. The rising cost of living, inflation, and unstable government policies have made life increasingly difficult for millions of Nigerians. From food prices skyrocketing to fuel shortages and power supply issues, the economic hardship is affecting all sectors of society. This article explores the key factors contributing to the daily crisis and how government policies under the APC administration have worsened the situation. And it doesn’t look like this would change anytime soon

2.Rising Cost of Living

The cost of basic necessities has surged to unprecedented levels, making it difficult for many Nigerians to afford food, transportation, and healthcare. Reports indicate that food prices have more than doubled in the last year, forcing many households to cut down on meals. Public transportation fares have also increased due to higher fuel costs, adding to the financial burden on citizens.

3.Inflation and Its Impact on Households

Nigeria’s inflation rate has soared, with reports indicating a record high of over 30% in early 2025. This inflationary pressure is eroding the purchasing power of the average Nigerian, making it harder to meet daily expenses. Salaries remain stagnant while the prices of goods and services continue to rise, leading to a decline in the standard of living.

4. Fuel and Electricity Price Hikes

The removal of fuel subsidies has led to a sharp increase in the price of petroleum products. Petrol prices have risen by over 200% in the past year, affecting businesses and households alike. Additionally, electricity tariffs have been hiked, causing frequent blackouts and making it difficult for businesses to operate efficiently. Many small and medium enterprises (SMEs) are struggling to survive due to high energy costs. Yet the government officials continue living lavishly why some of it citizens can`t even afford a daily meal.

5. Failures of the APC Administration

The economic hardship Nigerians are facing today is a direct result of poor policies and mismanagement under the All Progressives Congress (APC) administration.

Muhammadu Buhari’s Administration (2015-2023):

• Fuel Subsidy Crisis: The Buhari-led government struggled with the management of fuel subsidies, leading to repeated shortages and price hikes.
• Exchange Rate Instability: The naira depreciated significantly under Buhari, falling from about ₦200 per dollar in 2015 to over ₦700 per dollar by 2023.
• Rising Debt: The administration borrowed heavily, increasing Nigeria’s debt profile without tangible economic growth.
• Unemployment Surge: Youth unemployment rose drastically, with many graduates unable to secure jobs. Bola Ahmed Tinubu’s Administration (2023-Present):
• Subsidy Removal Shock: While the removal of fuel subsidies was expected to free up funds, it was poorly implemented, causing fuel prices to rise from about ₦190 per liter to over ₦700 per liter in 2024.
• Naira Freefall: Tinubu’s forex policies led to a further collapse of the naira, surpassing ₦1500 per dollar in early 2025.
• Transportation Crisis: The high cost of fuel has led to an increase in transport fares, affecting both businesses and individuals.
• Daily Cost of Living: The average Nigerian now struggles to afford basic necessities as prices of goods and services have doubled within months.

6. Government Policies and Their Effects

Several economic policies by the current president, Bola Ahmed Tinubu have been introduced by the government in an attempt to stabilize the economy, but many have only added to the hardship faced by Nigerians. The devaluation of the naira, restrictive trade policies, and increased taxation have further burdened citizens. While some policies aim to attract foreign investment and boost local production, the immediate impact has been overwhelmingly negative on the common man.

7. Possible Solutions and Future Outlook

To address the economic crisis, experts suggest a combination of policies and structural reforms, including:

• Strengthening local production to reduce dependence on imports.
• Implementing social welfare programs to support low-income families.
• Encouraging investment in renewable energy to reduce reliance on costly fuel imports.
• Stabilizing the naira through better foreign exchange policies.
• Enhancing transparency and accountability in government spending.

Despite the current hardship, there is hope that with the right policies, Nigeria’s economy can gradually recover sooner or later.

8. Conclusion

Nigeria’s economic crisis is having a significant impact on the daily lives of its citizens. Rising prices, inflation, and high energy costs have made survival challenging for many. However, with targeted government intervention and long-term economic reforms, there is a possibility for improvement. The resilience of Nigerians, combined with strategic economic policies, could pave the way for a more stable future.

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