Abuja: Nigerians are continuing to struggle with the rising cost of everyday life as the country moves closer to the 2027 general election. While the government says its economic reforms are beginning to stabilise the economy and attract investors, many families are still finding it difficult to afford food, housing, transport and other basic needs.
The growing gap between economic improvements and the experience of ordinary people is becoming an important political issue ahead of the election. President Bola Tinubu's government has introduced major reforms since taking office, including the removal of fuel subsidies and changes to the foreign exchange system. The measures were designed to improve government finances, attract investment and create the foundation for stronger economic growth.
However, the reforms also brought an immediate increase in the cost of living. Fuel prices rose sharply after the subsidy was removed, pushing up transport costs and making it more expensive to move food and other goods across the country. Electricity costs have also increased for many consumers, adding further pressure to household budgets.
For many Nigerians, the problem is not simply that prices are increasing. It is that incomes have not risen enough to keep pace with the higher cost of living.
A worker in Abuja earning 135,000 naira a month told Reuters that her salary can disappear within days because of the cost of food, housing, electricity and other necessities. Her experience reflects the difficulties faced by many middle income and lower income households across the country.
Food remains one of the biggest concerns. The cost of preparing common Nigerian meals has increased significantly in recent years. Families are being forced to reduce the amount of food they buy, change what they eat or spend a larger share of their income on groceries.
The government, however, points to several signs that the economy is moving in a better direction. Inflation has fallen considerably from the extremely high levels seen during the earlier part of the reform period. Nigeria's foreign exchange reserves have also increased strongly, reaching about 52.5 billion dollars, their highest level in many years.
Investor confidence has also improved. Nigeria recorded strong capital inflows, while the country's stock market has delivered substantial gains this year. These developments suggest that international investors are becoming more confident about the direction of the Nigerian economy.
But the benefits of stronger financial markets are not being felt equally by the population. Only a small percentage of Nigerians invest directly in the capital market, meaning that a rising stock market does not necessarily provide immediate relief for families struggling to pay their bills.
The government also faces pressure over wages. Nigeria's national minimum wage was raised to 70,000 naira, but labour groups have argued that the increase is not enough to compensate for the sharp rise in prices. Workers continue to demand better wages and payment of outstanding allowances and wage related benefits.
The issue is becoming increasingly important because Nigeria is heading towards presidential and National Assembly elections scheduled for January 2027. Political parties are expected to make the cost of living a central part of their campaigns.
Supporters of Tinubu argue that the difficult reforms were necessary because Nigeria's previous economic system was placing a heavy burden on government finances. They say the country needed to remove expensive subsidies, improve its foreign exchange system and encourage investment before sustainable growth could begin.
Opposition parties are likely to take a different view. They can point to the daily experience of Nigerians who are still struggling with food prices, transport costs, electricity bills and weak purchasing power. For these voters, improvements in economic indicators may matter less than whether they can afford to support their families.
The situation presents Tinubu with a difficult political challenge. The government needs to show that the economic pain caused by the reforms will eventually lead to better living standards. Falling inflation, stronger reserves, increased investment and improved economic growth could strengthen that argument if the gains begin reaching households.
But if prices remain high and wages fail to catch up, public frustration could remain strong despite improvements in the wider economy.
Nigeria's economic story is therefore becoming increasingly complicated. The country appears to be making progress in some important areas, but many citizens have yet to feel that progress in their daily lives.
As the 2027 election approaches, the key question will be whether Nigeria's economic recovery can move beyond financial markets and government statistics and translate into cheaper food, better wages, more jobs and greater financial security for ordinary people.
For Tinubu's government, that difference between economic recovery on paper and economic relief at home could become one of the most important issues of the coming election.