Poverty and Inflation in Nigeria: A Deep Economic Crisis
The economic crisis in Nigeria is assuming alarming proportions with the spiralling cost of living and galloping inflation hitting the population hard. The incessant rise in fuel prices and the continued depreciation of the naira are plunging the country into a spiral of unprecedented economic hardship.
The Non-Academic Staff Union of Education and Allied Institutions (NASU) has sounded the alarm, calling on the Federal Government to act urgently to avert an imminent mass revolt. The NASU President, Dr. Makolo Hassan, has warned of the dire consequences of Nigeria’s over-reliance on global oil price fluctuations, stressing that this economic vulnerability is having a devastating impact on the population.
Despite promises of economic diversification into sectors such as agriculture and technology, Nigeria remains heavily dependent on oil, leaving the economy at the mercy of global oil markets. This dependency has proven to be a burden rather than a blessing, leading to chronic economic instability and rampant inflation.
The lack of internal refining capacity has forced the government and distributors to import petroleum products at international prices, exacerbating the economic crisis. Non-functional government refineries and the Nigerian National Petroleum Corporation Limited’s (NNPCL) monopoly on fuel distribution have contributed to the worsening situation, highlighting the incompetence and controversial priorities of the state-owned company.
The Dangote Refinery project, which was supposed to alleviate these problems, is facing bureaucratic and political hurdles, delaying the potential benefits it could deliver to the national economy. Meanwhile, the NNPCL’s inability to turn around its own refineries continues to fuel inflationary pressures and financial distress among the population.
The current economic crisis is having a devastating impact on Nigerian households, exacerbating poverty and financial insecurity. The rising cost of basic commodities, coupled with soaring fuel prices and the depreciation of the naira, have reduced the purchasing power of citizens and left many households struggling to make ends meet on a daily basis.
It is imperative that the government take concerted steps to reform the oil sector, boost economic diversification and mitigate the disastrous impact of the crisis on the population. Efforts must be made to restore the functionality of government refineries, encourage investment in other economic sectors and put in place policies to stabilise the national economy.
Given the urgency of the situation, it is more necessary than ever to adopt bold and effective measures to pull Nigeria out of this deep economic crisis. The Nigerian people deserve a better future, and it is time for concrete actions to be taken to ensure the country’s prosperity and economic stability.