“Nigeria’s Economic Reforms Show Growth on Paper, But Millions Still Struggle With Soaring Costs”
Date: July 14, 2025 | By SpringnewsNG Media Limited
Nigeria’s Economy Rebounds on Paper, But Citizens Yet to Feel Relief From Reforms
In the first half of 2025, Nigeria’s economic indicators suggest a cautious but promising recovery. Key data show positive trends: inflation has slowed, the naira has stabilised, and investor confidence is gradually returning. The country’s GDP is projected to grow by 3.7% year-on-year, supported by increased oil production, manufacturing growth, and improved business conditions, according to Stanbic IBTC’s Purchasing Managers Index (PMI).
Inflation rates dropped significantly—from a high of 34.8% in December 2024 to an average of 22.97% in H1 2025—following the rebasing of the Consumer Price Index (CPI). Exchange rate volatility has eased, with the naira stabilising at ₦1,551.43 to the US dollar. Meanwhile, Nigeria’s foreign reserves, FX auctions, and diaspora remittances helped bolster the economy, while bond yields rose to 8.6%, reflecting increased credit market confidence.
The government’s steady 27.5% Monetary Policy Rate and the repayment of key IMF loans have also earned Nigeria improved sovereign credit ratings. Additionally, the successful passage of four major tax reform bills and robust debt market performance—₦11.4 trillion raised in H1 alone—are considered signs of sound fiscal management and policy maturity.
The Disconnect: Strong Data, Weak Daily Realities
Despite these macroeconomic gains, millions of Nigerians remain trapped in daily hardship. The supposed benefits of economic reforms have yet to trickle down to ordinary citizens. Food prices remain high, healthcare access is limited, and insecurity continues to grip rural areas.
The reality for many is stark: while government statistics paint a picture of progress, the average Nigerian is still struggling to afford basic necessities. The term “disinflation” may reflect on economic charts, but it has not brought cheaper goods to the market stalls.
This disconnect—“data up, people down”—underscores the urgent need to reorient reforms toward real human impact. Economic recovery cannot be measured by numbers alone, but by improvements in everyday life: access to food, jobs, healthcare, and security.
Real Progress Requires Inclusive Growth
For Nigeria’s reforms to truly succeed, they must lift people out of poverty and offer tangible improvements in living standards. Economic indicators may suggest that the country is on the right path, but until reforms are felt at the grassroots level, the story remains incomplete.
As policymakers continue to implement fiscal and monetary adjustments, there must be a stronger focus on inclusive growth. The government’s next big leap should be from macroeconomic stabilization to microeconomic transformation—where reforms translate into lower living costs, improved public services, and a better quality of life for all Nigerians.
The Road Ahead
Nigeria is at a pivotal moment. With global lenders and investors watching closely, now is the time to ensure that the country’s economic wins are matched by social gains. Only then can Nigeria move from recovery to prosperity—not just on paper, but in the lives of its people.
Bottom line: Data may be up, but for real progress, people must rise with it.
