Nigeria's Economy: Reform Numbers Questioned Amid Naira Instability

Nigeria's inflation dropped from 34% in 2024 to 15.2% in December 2024, with reserves hitting a seven-year high of $50 billion and IMF forecasting 4.4% growth. However, journalist Uddin Ifeanyi questions the sustainability of these gains. While eliminating fuel subsidies and floating the naira boosted reserves, Argentina's more comprehensive reforms achieved faster inflation reduction (1.5% vs 15.2%) and budget surpluses. Nigeria's naira remains weak externally but weak internally, with 15% inflation still above growth thresholds. Portfolio investors flee due to dollar weakness from US policies and high domestic inflation, forcing CBN to prop up the currency. The reforms failed to boost productivity or reduce poverty, leaving the naira's value unstable despite external strength.

SOURCE: https://www.premiumtimesng.com/opinion/860693-nigeria-all-poster-no-economics-by-uddin-ifeanyi.html