Nigeria is gripped by one of its worst economic crises in years as surging inflation and a rapidly declining currency batter the nation.
The latest government data shows inflation hit 29.9% in January, the highest since 1996. Food and beverage prices are driving the spike. Meanwhile, the Nigerian naira currency has plunged to a record low of 1,524 naira to $1 on Friday, a 230% drop in value over the past year.
The economic turmoil is squeezing Nigerians who were already struggling with reforms like subsidy cuts that caused gas prices to triple. With over 210 million people, Nigeria has Africa's largest economy but it relies heavily on imports and oil exports.
The naira's sharp decline makes imports more expensive, eroding incomes and savings. Daily necessities like food and household items are increasing in price daily. The situation is especially dire in conflict zones where farming has halted.
Experts cite poor monetary policies as a key factor. The Central Bank previously propped up the naira artificially while a parallel black market thrived. A new unified exchange rate was supposed to boost investment but instead accelerated the naira's slide as dollar inflows stayed weak.
President Bola Tinubu has directed releasing reserves of staple foods and other relief measures. But protests have broken out over the economic hardship. Tinubu blames hoarding and says authorities are cracking down on speculators.
With incomes declining and costs soaring, many Nigerians are struggling to afford basics like food and shelter. The government faces pressure to stabilize the economy and currency to alleviate the deepening crisis.