“Naija no dey carry last” is a popular term in Nigeria that conveys the resilient and enterprising spirit of Nigerians. Despite this optimism, many Nigerians, especially the youth, have become less hopeful about Nigeria’s potential to stand tall as a giant nation due to its inability to accelerate economic progress.
Chima, a 39-year-old who runs a small bakery on the outskirts of Abuja, employs six staff members. He has longed for an environment where his business can grow. “Over the years, the number of Nigerians living below the poverty line has risen from 70 million in 2010 to an estimated 109 million in 2023,” he noted. Nigeria ranked 161 out of 193 countries on the Human Development Index (HDI) in 2022.
Despite these challenges, many Nigerians continue to strive for better economic outcomes. From thriving markets in Lagos, Kano, and Aba to unicorn startups providing fintech solutions and a buzzing creative industry making waves globally, there is still hope for Nigeria's potential.
Since May 2023, Nigeria has embarked on significant reforms aimed at stabilizing the economy and fostering growth. The Central Bank of Nigeria unified multiple official exchange rates and fostered a market-determined official rate. This improved foreign exchange supply benefits businesses and consumers alike. Additionally, the government adjusted gasoline prices to phase out subsidies that cost over 8.6 trillion naira (US$22.2 billion) from 2019 to 2022.
However, implementing these reforms comes with high costs. Inflation rose to 33.7 percent in April 2024, impacting citizens' purchasing power. To mitigate this effect, the government announced a cash transfer program supported by the World Bank through the Nigeria Social Safety Net Program-Scale Up.
Turning around these reforms will require partnerships and support to achieve long-term economic prosperity. The World Bank has approved a new financing package of US$2.25 billion for Nigeria's Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF) and the Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR). These programs aim to stabilize the economy and support vulnerable populations while promoting fiscal sustainability.
The World Bank continues supporting Nigeria with technical advisory services and financing over US$15 billion across sectors such as reliable power, clean energy, girls’ education, women’s economic empowerment, climate adaptation and resilience, water and sanitation, and governance reforms.
As Nigeria strives towards economic prosperity, sustained efforts are required to deliver key public goods for its citizens. With continued investments in macro-fiscal reforms and public goods delivery, "Naija" can rise as an example for regional growth and improved citizen welfare.