Video - Nigeria's Economic Turmoil: Surging Prices and Struggling Lives

Nigeria is currently experiencing its worst economic crisis in a generation, leading to widespread hardship and anger. A litre of petrol costs more than three times what it did nine months ago, while the price of staple food items like rice has more than doubled in the past year. These rising costs have hit Nigerians hard, as wages have not kept up with the escalating cost of living. While Nigeria has experienced economic shocks from beyond its shores, domestic issues have also contributed to the crisis, driven by reforms introduced by President Bola Tinubu since he took office last May. Overall, annual inflation is now close to 30%, the highest in nearly three decades, while food prices have risen by 35%. The monthly minimum wage, unchanged since 2019, stands at 30,000 naira, worth just $19 at current exchange rates, leaving many people hungry and rationing food. President Tinubu's economic reforms included ending the long-standing fuel subsidy on the day he was sworn in. While the subsidy kept petrol prices low, it was a substantial drain on public finances, accounting for 15% of the budget in the first half of 2023. The subsequent rise in petrol prices has caused other prices to increase as companies pass on transportation and energy costs to consumers. Another factor driving inflation is the previous government's short-term loans from the central bank, which fueled inflation. President Tinubu also ended the policy of pegging the naira to the US dollar, causing the currency's value to plunge by more than two-thirds. Last May, 10,000 naira would buy $22; now it fetches around $6.40. This depreciation has increased the cost of all imported products. Despite the challenges, the government has introduced measures to ease the suffering. Vice-President Kashim Shettima announced a board to control and regulate food prices and ordered the distribution of 42,000 tonnes of grains from the national grain reserve.