Nigeria's Economic Policies: Stability vs. Living Standards

In an interview, Adi, a professor of economics at the Lagos Business School, evaluated the economic policies of the Federal Government over the past three years, focusing on the removal of the fuel subsidy under President Bola Ahmed Tinubu's administration. He noted that while these policies were appropriate and have led to macroeconomic stabilization, they have also resulted in declining living standards, increased poverty, and rising inequality.

Adi highlighted that Nigeria's current economic growth rate of about four percent is insufficient for significant improvements in household incomes, estimating that it would take approximately 15 years for per capita income to double from around $1,000 to $2,000. He contrasted Nigeria's income situation with Ghana, which has a per capita income of $2,500, and pointed out that Nigeria's income levels have fallen since the subsidy years.

The debate over fuel subsidy removal has resurfaced, with Atiku Abubakar, the Africa Democratic Congress presidential candidate, pledging to reinstate a modified version of the subsidy if elected in the 2027 elections.