Nigeria, Africa?s largest oil producer, is reeling from a series of economic shocks exacerbated by policy decisions that, while ostensibly aimed at long-term benefits, have plunged the populace into unprecedented hardship.

The removal of fuel subsidies and the unification of the naira exchange rate have combined to inflate the cost of living. For many, survival has become a Herculean task.

Once regarded as the land of the happiest people on earth, Nigeria has swung dramatically in the opposite direction. Africa?s most populous nation ranks 102nd on the World?s Happiness ranking. This is a decline from the 95th position it held in 2023.

The air of optimism and joy that once defined the country is now a faint memory, replaced by widespread despair and frustration.

The World Bank recently projected Nigeria?s poverty rate to climb further, estimating that over 129 million citizens now live below the poverty line.

Meanwhile, the Economist Intelligence Unit (EIU) warned that Nigeria could rank among the most difficult places to live over the next five years, citing economic instability, insecurity, and governance issues as major contributors.

As Christmas approaches, there is a palpable absence of joy. The streets, once filled with festive cheer, are now marked by muted celebrations. Markets that would typically be bustling with activity are subdued, with traders lamenting low patronage.

?People are not buying,? says Chidi Okonkwo, a fabric trader in Lagos?s Balogun Market. ?Before now, I would have sold out Christmas fabrics by mid-November. This year, my shop is still full. Customers complain that they can barely feed their families, not to talk of buying clothes.?

The situation is no better in the formal sector, where layoffs and salary cuts have become rampant. Small and medium enterprises (SMEs), the backbone of Nigeria?s economy, are struggling to stay afloat amidst skyrocketing production costs and dwindling consumer spending.

The human cost of the economic crisis is glaring. Hunger and malnutrition are rising, with children bearing the brunt.

Disillusioned youth and mass exodus

The youth, once heralded as the country?s greatest asset, are increasingly disillusioned. With no clear path to economic recovery, many are seeking greener pastures abroad.

?Every day, I check for visa opportunities,? says Segun, a 29-year-old graduate in Lagos. ?I love my country, but there?s nothing left for me here. I don?t want to wake up at 50 and realise I wasted my life waiting for things to improve.?

The Japa syndrome?Nigerians emigrating en masse?has become a defining trend, with professionals in health, tech, and finance leading the charge. This brain drain further compounds the country?s woes, with experts warning that critical sectors might be understaffed and ill-equipped in coming years.

Government hell-bent on reforms

The government insists that its policies are necessary for long-term economic stability. President Bola Ahmed Tinubu?s administration has described its reforms as bitter pills required to build a resilient economy.

?As you are all aware, we took the baton of authority at a time when our economy was nose-diving as a result of heavy debts from fuel and dollar subsidies.

?The subsidies were meant to support the poor and make life better for all Nigerians. We are all aware of the fact that the poor and average Nigerians were the sufferers of what was supposed to give them succor and improved standard of living.

?Unfortunately, the good life we thought we were living was a fake one that was capable of leading the country to a total collapse unless drastic efforts were urgently taken.

?The need to salvage the future of our children and bring the country back from the brink of collapse necessitated the strategic decisions to remove the fuel subsidy and also unify the exchange rates,? the president, who was represented by Wahab Egbewole, the vice chancellor of the University of Ilorin, said at the 34th and 35th combined convocation ceremonies of the Federal University of Technology Akure (FUTA) in Ondo State last week.

However, many Nigerians feel that the government has failed to cushion the immediate impact of these policies.

?We understand the need for reforms, but where are the safety nets?? asks Aisha Suleiman, a civil servant. ?How can you remove subsidies, hike electricity tariffs and devalue the naira at the same time??

Economists have urged the government to prioritise investments in agriculture, renewable energy, and digital innovation to create jobs and reduce dependency on oil revenues. Others advocate for improved governance, transparency, and accountability as essential steps toward rebuilding trust.

As Nigeria stands at a crossroads, the question remains: how long can its citizens endure the current hardship? (BusinessDay)

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