Nigeria's Economic Adjustments Yield Mixed Results

Over the past three years, Nigeria has faced substantial macroeconomic adjustments, including the removal of the petrol subsidy, the unification and liberalization of the foreign exchange market, and a tightening cycle by the Central Bank of Nigeria (CBN). These changes led to increased petrol prices, naira depreciation, and higher borrowing costs, affecting households and small businesses.

However, there are signs of improvement, with headline inflation decreasing from a peak of over 34% in 2024 to 15.43% in July 2026, as reported by the National Bureau of Statistics. The naira stabilized at approximately N1,346 to N1,349 per dollar in August 2026, and external reserves reached $52.66 billion by August 19, 2026, marking a 17-year high.

Real GDP grew by 3.89% year-on-year in the first quarter of 2026, driven by the non-oil economy. Despite these positive indicators, inflation remains high, particularly food inflation at 20.31%, raising concerns about the overall economic relief for Nigerians.