Executive Summary
Nigeria's economy shows signs of recovery on paper, with a growth of 3.87 percent in 2025, the strongest yearly performance since 2022, according to the National Bureau of Statistics. However, millions of citizens continue to struggle with a cost-of-living crisis, as highlighted by stagnant wages and rising food prices. President Bola Tinubu's economic reforms, including the removal of fuel subsidies and exchange rate unification, aimed to correct structural distortions. Despite these reforms stabilizing macroeconomic indicators like external reserves climbing to $50 billion, living standards have deteriorated, eroding purchasing power. A PwC report projects that Nigeria’s poverty crisis will deepen further in 2026, with the number of people living below the poverty line expected to rise to 141 million.
- Nigeria's economic growth fails to improve living standards due to rising poverty and cost-of-living crisis despite government reforms.
What Is Driving The Story?
- Ineffective policy implementation.
- Rising inflation and unemployment.