Nigeria economic reforms fuel cost-of-living crisis

Nigeria's government under President Bola Tinubu has implemented sweeping economic reforms, including removing fuel subsidies, devaluing the naira, and cutting electricity subsidies. These measures have led to soaring living costs, with petrol prices six times higher and the cost of making jollof rice more than doubling. The World Bank Group estimates that over half of Nigeria's population lived in poverty last year, up from 42% in 2022. While investors have cheered the reforms, with the Nigerian stock exchange up nearly 60% this year and capital inflows reaching a six-year high of $23 billion, ordinary Nigerians are struggling. Federal workers rejected a proposed minimum wage increase, and 80% of Nigerians believe the country is moving in the wrong direction. Finance Minister Taiwo Oyedele acknowledged the need to ensure prosperity for all, warning that persistent inequality is 'like sitting on gunpowder.'