Revenue Reforms Bite Hard: Nigerians Pay More for Less

The Nigerian economy is undergoing a painful transition, and the average citizen is bearing the brunt of it. Following the federal government’s decision to remove fuel subsidies and float the naira, Nigerians are paying significantly more for basic needs—yet getting far less in return.

Under President Bola Tinubu's administration, these revenue reforms were introduced as part of broader economic restructuring. Officials argue that subsidy removal and currency liberalization are necessary to free up funds and attract foreign investment. But in reality, these policies have unleashed inflationary pressure, worsening the cost of living across the country.

As of December 2024, Nigeria’s inflation rate had skyrocketed to 34.8%, with food inflation soaring beyond 40%. Prices of everyday items such as rice, yam, bread, and cooking oil have more than doubled. Transportation costs are also climbing due to rising petrol prices, directly impacting commuters and traders.

The floating of the naira has led to significant depreciation of the currency, pushing the prices of imported goods even higher. Unfortunately, while government revenues have increased, public welfare seems to have declined. Many Nigerians now question how these funds are being utilized, as improvements in infrastructure, healthcare, or education remain invisible.

Small businesses are not spared either. Many are closing shop due to high operating costs and low patronage. While the government promotes reforms, citizens face hunger, job losses, and uncertainty.

Economists and civil society organizations are urging the government to provide safety nets—such as food relief, transport palliatives, and a reviewed minimum wage—to cushion the negative effects of these reforms.

In a nation where millions already live below the poverty line, the pressure is mounting. If not urgently addressed, these economic changes could trigger deeper social and economic unrest.

---

For more updates and news, visit luchiinter.blogger.com daily.