Nigeria continues to face many social and economic challenges that include insecurity such as banditry and kidnappings especially in the northwest region, continued insurgency by terrorist groups in the north-east, and separatist agitations in the south-east.
Following a change in administration in May 2023, the country has been pursuing bold reforms to reestablish macroeconomic conditions for stability and growth. The Central Bank of Nigeria has appropriately tightened monetary policy and refocused on its price stability mandate, facilitated by the authorities’ commitment to end deficit monetization. Although these measures are helping Nigeria’s economy turn the corner, inflation remains high, increasing hardship and poverty. To support the poorest and more economically at-risk households, the government has been implementing temporary cash transfers to reach 15 million households.
Development Challenges
Despite having the largest economy and population in Africa, Nigeria offers limited opportunities to most of its citizens. Nigerians born in 2020 are expected to be future workers 36% as productive as they could be if they had full access to education and health, the 7th lowest human capital index in the world. Weak job creation and entrepreneurial prospects stifle the absorption of the 3.5 million Nigerians entering the labor force every year, and many workers choose to emigrate in search of better opportunities. The poverty rate is estimated to have reached 38.9% in 2023, with an estimated 87 million Nigerians living below the poverty line — the world’s second-largest poor population after India.
Source: World Bank 2024
