Judul : The Paradox of Progress: Nigeria's Macroeconomic Goals Take Shape
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The Paradox of Progress: Nigeria's Macroeconomic Goals Take Shape
Nigeria's macroeconomic overview is starting to reflect signs of steadiness. What initially appeared to be an unattainable goal is now becoming more tangible. Inflation has been a major concern for Nigerians since the latter part of 2023.
However, this situation is about to change. Starting from a peak of 34.8 percent in December 2024, inflation has decreased to 16.05 percent, according to the National Bureau of Statistics on Tuesday. It is highly likely that once the November data is published by mid-December, the number will be close to the government's annual target of 15 percent.
Regarding inflation, the same can be said for the foreign exchange market, where the naira remains stable. The country's currency has shown commendable performance. On yesterday, November 18, 2025, the exchange rate stood at N1,447.43, which is lower than the government's target for the year. In other words, the exchange rate has stabilized following months of instability.
These two factors—rising inflation and currency devaluation—triggered an extraordinary cost-of-living crisis in Africa's most populous nation, endangering the lives of millions. The price of all items, including food and personal care products, became unaffordable for regular Nigerians.
Even though fiscal reforms were seen as long overdue, they are now helping reduce deficits and boost revenue. The government has addressed what appeared to be a difficult tax issue, and starting in January 2026, a new tax system will be implemented, with the government expecting higher income. The gateway to the Ways and Means facility at the central bank appears to have been permanently closed, cutting off the government's access to this source of free funds. For the first time in many months, government officials can highlight goals that are starting to match forecasts. These are significant accomplishments.
Nevertheless, beneath these positive signs is a more persistent truth: many Nigerians are still awaiting proof that the economy is genuinely improving. As the government's macroeconomic goals take shape, the nation must address a more fundamental issue. What do these figures signify for the people they aim to assist? Are we facing a contradiction in the recovery process?
Millions of families still face daily life dominated by high costs and unstable earnings. Rising food prices keep reducing buying capacity, forcing many households to make tough decisions and eat less. It's true that inflation has dropped significantly from its peak in December. However, what about the broader economic factors that affect people's everyday lives? What happened to transportation fees that increased sharply in May and June 2023 for buses and taxis? Both local and long-distance transport expenses are still high, taking a big toll on individuals' finances. This current inflation situation overlooks these aspects.
The overall level of prices is falling, yet millions of city residents have experienced significant increases in their rent from landlords—sometimes by more than 100 percent. The present inflation situation will not and may not be able to reverse the rents that have already been imposed by property owners. Consequently, struggling tenants are forced to either pay the new rates or seek alternative housing, as others have done with great difficulty.
Several landlords increased their rental prices due to the significant decline in the value of the naira. Indeed, some have reportedly expressed that the rent they were getting at that time, when converted to foreign currencies like the Dollar or Pound Sterling, was considerably lower than what they used to receive for their properties. The landlords are not concerned with whether they constructed their buildings during a period of low inflation and a strong naira; they base their current situation on the expenses they face today.
As economists note, "prices are sticky downwards," recognizing that once prices increase, they tend to stay elevated. This is precisely what Nigerians are currently facing. Most prices have risen during the surge of inflation. Our current data does not capture this.
Nigeria finds itself in a sensitive period. While there are positive macroeconomic indicators, the actual situation is still difficult. The current danger lies in celebrating too soon—mistaking minor achievements for true recovery. Clearly, the government has created the foundation for stability; the challenge now is to turn that stability into widespread prosperity. The true test of economic reform is not about meeting targets, but about ensuring the well-being and confidence of the people.
Nevertheless, the growing stability holds significance. Macroeconomic responsibility serves as the base for long-term prosperity. It is challenging for any economy to flourish when inflation is uncontrolled, and the currency is rapidly losing value. Nigeria has experienced these situations previously; stabilization is essential to avoid further suffering. The more pressing issue today is making sure that the advantages of these macroeconomic improvements are evident in homes and businesses throughout the nation.
Until Nigerians experience the effects in their personal finances, the nation's recovery will continue to be a narrative presented in spreadsheets instead of in homes, markets, and offices. While macroeconomic goals may be taking shape, genuine success will only be achieved when the figures match the everyday experiences of the population.
Copyright 2025 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (okay1)
Tagged: Nigeria, Economy, Business and Finance, West Africa
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