Despite improved macroeconomic indicators, Nigeria’s economic recovery remains uneven, with citizens facing worsening living conditions and persistent inequality.
Nigeria’s recent economic data suggest progress, but citizens see little relief. Headline inflation dropped from 34.8 percent in December 2024 to 21.9 percent by July 2025, while foreign reserves reached a three-year high of $40.1 billion. Yet, everyday Nigerians continue to struggle with rising costs and stagnant incomes.
“The deeper question is why macroeconomic progress so rarely translates into welfare gains. Nigeria’s growth model rewards capital, not labour,” analysts warn. Growth is concentrated in oil, finance, and telecommunications—sectors that create limited jobs.
Per capita income has fallen from $877 in 2024 to $835 this year, underscoring how growth fails to match population expansion. Small businesses, facing interest rates above 25 percent and erratic power supply, are shutting down in large numbers.
Experts urge policymakers to shift focus from managing indicators to improving outcomes through fiscal transparency, SME credit access, and reliable energy, warning that stability without welfare risks becoming a “statistical mirage.”