NLC protests: Why Nigeria's economy is in such a mess

 

Nigeria is currently experiencing its worst economic crisis in a generation, leading to widespread hardship and anger.

The trade union umbrella group, the Nigeria Labour Congress (NLC), held protests in the main cities on Tuesday, calling for more action from the government.

A litre of petrol costs more than three times what it did nine months ago, while the price of the staple food, rice, has more than doubled in the past year.

These two figures highlight the difficulties that many Nigerians are facing as wages have not kept up with the rising cost of living.

Like many nations, Nigeria has experienced economic shocks from beyond its shores in recent years, but there are also issues specific to the country, partly driven by the reforms introduced by President Bola Tinubu when he took office last May

How bad is the economy?

Overall, annual inflation, which is the average rate at which prices go up, is now close to 30% - the highest figure in nearly three decades. The cost of food has risen even more - by 35%.

However, the monthly minimum wage, set by the government and which all employers are supposed to observe, has not changed since 2019, when it was put at 30,000 naira - this is worth just $19 (£15) at current exchange rates.

Many are going hungry, rationing what food they have or looking for cheaper alternatives.

In the north, some people are now eating the rice that is normally discarded as part of the milling process. The waste product usually goes into fish food.

Widely shared social media videos indicate how some are reducing portion sizes.

One clip shows a woman cutting a fish into nine pieces rather than the average four to five. She is heard saying her goal is to ensure her family can at least eat some fish twice a week

What is causing Nigeria's economic crisis?

Inflation has soared in many countries, as fuel and other costs spiked as a result of the war in Ukraine.

But President Tinubu's efforts to remodel the economy have also added to the burden.

On the day he was sworn in nine months ago, the new president announced that the long-standing fuel subsidy would be ending.