Feature/OPED
How Policy Flip-Flops Are Making Nigerians Poorer
By Blaise Udunze
Nigeria’s deepening poverty crisis is no longer speculative; it is now statistically inevitable. Although the latest Consumer Price Index figures released by the National Bureau of Statistics (NBS) suggest that headline inflation is cooling and growth indicators show tentative improvement, regrettably, more Nigerians are slipping below the poverty line. Reviewing the recent projections from PwC’s Nigeria Economic Outlook 2026, it is alarming, which reveals that no fewer than two million additional Nigerians are expected to fall into poverty next year. This is expected to push the total number of poor people to about 141 million, roughly 62 percent of the population and the highest level ever recorded in the country’s history.
This grim outlook persists despite eight consecutive months of easing inflation and modest economic recovery, and as one can perceive, the contradiction is telling. The fact remains that macroeconomic signals are improving on paper, yet lived reality continues to deteriorate. It is glaring that the widening gap between policy metrics and human outcomes exposes a deeper truth in the sense that Nigeria’s poverty crisis is not simply the product of external shocks or temporary adjustment pains. It is the cumulative result of fragile policymaking, inconsistent reforms, weak institutional coordination, and a failure to sequence economic changes with adequate social protection. With these, it becomes clearer that poverty in Nigeria is no longer an unintended side effect of reform; it is increasingly its most visible outcome as identified today.
It would be recalled that the current administration in 2023, when it assumed office, promised a bold economic reset. At this point, the nation witnessed the fuel subsidy removal, exchange-rate liberalisation, and tighter fiscal discipline being introduced swiftly and applauded internationally for their courage and long-term logic. Notably, these reforms unleashed an economic storm whose aftershocks continue to batter households and currently resulting to the cost of a bag of rice that sold for about N35,000 two years ago now costs between N65,000 and N80,000, while a crate of eggs has risen from N1,200 to over N6,000 and basic staples like garri, tomatoes, and pepper have drifted beyond the reach of ordinary Nigerians. For millions, the economy did not reset; it snapped.
Inflation, often described by economists as a “silent tax,” has punished productivity, mocked thrift, and rewarded speculation.
Reports from the NBS’s December 2025 disclosed that headline inflation eased to 15.15 percent and according to it, this is due to a rebasing of the Consumer Price Index, down sharply from 34.8 percent a year earlier, this statistical moderation has brought little relief to households. Food inflation, at 10.84 percent year-on-year, and a marginal month-on-month decline may look reassuring on spreadsheets, but for families spending 70 to 80 percent of their income on food, such figures feel detached from reality. These figures are not only implausible but also insulting to those whose lives have been torn apart by the skyrocketing prices. With the realities facing the larger populace, Nigeria must be using another mathematics.
Nigeria may have changed its base year, but it has not changed the harsh arithmetic of survival.
PwC’s data underscores this disconnect, as nominal household spending rose by nearly 20 percent in 2025, real household spending contracted by 2.5 percent, reflecting the erosive impact of rising food, transport, and energy costs. The painful part of it, is that Nigerians are spending more money to consume less, and this is to say that growth, hovering around 4 percent, is not strong enough to absorb shocks or lift households meaningfully. As analysts note, Nigeria would require sustained growth of 7 to 9 percent to make a significant dent in poverty. That is to say that anything less merely slows the descent.
The structural weakness of the economy is compounded by policy inconsistency. Nigeria’s economic landscape is littered with abrupt shifts, subsidy removals without buffers, currency reforms without stabilisation mechanisms and trade policies that oscillate between restriction and openness. For households and small businesses, which employ most Nigerians, this unpredictability makes planning impossible. The economy has constantly being faced with price volatility, income shocks, and lost jobs because these are the ripple effects of every policy reversal. Uncertainty itself has become a poverty multiplier.
Nowhere is this fragility more evident than in food systems and rural livelihoods, and this has been where insecurity has merged with policy failure to create a new poverty spiral. Across farmlands in the North and Middle Belt, crops rot unharvested as banditry and insurgency force farmers off their land. Nigeria’s largely agrarian economy has been crippled by violence that disrupts planting cycles, destroys infrastructure, and displaces communities. The result is both income poverty for farmers denied access to their livelihoods and food inflation that erodes purchasing power nationwide.
For record purposes, earlier last year, the NBS Multidimensional Poverty Index showed that 63 percent of Nigerians, about 133 million people, are multidimensionally poor, with poverty heavily concentrated in insecure regions. Findings showed that about 86 million of the poor live in the North, and this is where insecurity is most severe. This record showed that rural poverty stands at 72 percent,c compared to 42 percent in urban areas, and while the states most affected by banditry and insurgency record poverty rates as high as 91 percent. Insecurity is no longer just a security problem; it is one of Nigeria’s most powerful poverty drivers.
The economic cost of insecurity in Nigeria today is staggering. This is because the conservative estimates suggest Nigeria loses about $15 billion annually, which is roughly equivalent to N20 trillion, due to insecurity-induced disruptions across agriculture, trade, manufacturing, and transportation. At the same time, security spending now consumes up to a quarter of the federal budget. In just three years, over N4 trillion has been spent on security, which crowded out investment in health, education, power, and infrastructure. Every naira spent managing perpetual violence is a naira not invested in preventing poverty, even as poverty deepens, the state’s fiscal response reveals a troubling misalignment of priorities. The 2026 federal budget, estimated at N58.47 trillion, ironically allocates just N206.5 billion to projects directly tagged as poverty alleviation and this only amounts to about 0.35 percent of total spending and less than one percent of the capital budget. In a country where over 60 percent of citizens live below the poverty line, this allocation borders on policy negligence.
Worse still, over 96 percent of this already meagre poverty envelope sits under the Service Wide Vote through the National Poverty Reduction with Growth Strategy, largely as recurrent provisions. All ministries, departments, and agencies combined account for barely N6.5 billion in poverty-related projects. This fragmentation reflects a deeper institutional failure, that is to say, poverty reduction exists more as a line item than as a coherent national mission.
Where MDA-level interventions exist, they are largely palliative and scattered, grain distribution in select communities, tricycles and motorcycles for empowerment, and small scale skills acquisition for women and youths. The largest such project, a N2.87 billion tricycle and motorcycle scheme under a federal cooperative college, accounts for nearly half of all MDA-based poverty spending. The fact remains that the various interventions may offer temporary relief, and they do little to address structural drivers of poverty such as job creation, productivity, market access and human capital development.
Even the Ministry of Humanitarian Affairs and Poverty Alleviation illustrates the problem just as its budget jumped sharply in 2026, much of the increase went into administrative and capital items, office furniture, equipment, international travel, retreats, and systems automation rather than direct poverty-fighting programmes. This reflects a familiar Nigerian paradox: institutions grow, but impact shrinks.
International partners have been blunt in their assessments. The World Bank estimates that Nigeria spends just 0.14 percent of GDP on social protection, which is far below the global and regional averages. Only 44 percent of safety-net benefits actually reach the poor, rendering the system inefficient and largely ineffective. PwC similarly warns that without targeted job creation, productivity-focused reforms, and effective social protection, poverty will continue to rise, undermining domestic consumption and straining public finances further.
Fiscal fragility compounds the crisis. The N58.18 trillion 2026 budget carries a deficit of N23.85 trillion, with debt servicing projected at N15.52 trillion, nearly half of expected revenue. The public debt has ballooned to over N152 trillion. The contradiction here is that Nigeria is borrowing not to expand productive capacity but to keep the machinery of government running. The truth is not far-fetched because, as debt crowds out development spending, households are forced to pay privately for public goods, education, healthcare, water, deepening inequality and entrenching poverty across generations.
To be clear, not all signals are negative. This is because opportunities exist if reforms are sustained and properly sequenced. Regional trade under the African Continental Free Trade Area could diversify exports and create jobs. But reform momentum without inclusion and institutional capacity risks becoming another missed opportunity.
This is the central tragedy of Nigeria’s moment. The country is attempting necessary reforms in an environment of weak buffers, fragile institutions, and low trust. Poverty is therefore not accidental. It is the predictable outcome of inconsistency, reforms without protection, stabilisation without security, and budgets without people.
Nigeria faces an undeniable choice. It can continue down a path where fragile policies deepen deprivation and erode trust, or it can build a disciplined, coordinated framework that aligns reforms with social protection, security, and inclusive growth. Poverty is not destiny. But escaping it requires more than courage in reform announcements; it demands consistency, compassion, and the political will to place human welfare at the centre of economic strategy.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: bl***********@***il.com
By Louis Strydom
Last year, I argued in my piece Lean Carbon, Just Power that a limited and temporary increase in African carbon emissions is justified to meet the continent’s urgent electrification needs.
That position was not a retreat from climate ambition. It laid out a credible lean-carbon pathway that reconciles power systems development realities with climate arithmetic.
The central question remains: not whether emissions must fall, but how much temporary headroom is tolerable to accelerate energy prosperity for a continent responsible for roughly 4% of global CO2.
The flexibility equation
The future of Africa’s electrification is neither “all renewables tomorrow” nor “gas indefinitely”. Intermittent renewables alone cannot power the continent’s fragile grids at scale. Solar and wind require highly dispatchable power capacity to ensure the reliability of the system.
The real choice is not between renewables and fossil fuels in the abstract; it is between flexible firm power that complements solar and wind, and the de facto alternative: the increasing reliance on high-emissions diesel backup and widespread grid instability.
I argue that a realistic transition strategy must embrace “a capped carbon overdraft”: a strictly bounded, time-limited deployment of flexible power plants running on gas that supports the deployment of renewables and declines according to a binding schedule. This strategy means accepting minimal, temporary emissions to allow for a faster, cleaner and more resilient clean transition.
The response to this argument drew serious scrutiny. Three objections deserve a direct answer.
First: Does the case for flexible thermal power hold on a full life cycle basis?
It does. Our power system studies in Nigeria, Mozambique, and Southern Africa consistently reach the same conclusion – the least-cost long-term system is renewables-led, with flexible engines balancing variability. That holds across capital, fuel, maintenance, carbon pricing, and decommissioning. South Africa’s Integrated Resource Plan 2025, approved in October, makes the point concretely: it projects 105 GW of new capacity by 2039 with renewables as backbone, yet includes 6 GW of gas-to-power by 2030 explicitly for grid stability. Even the continent’s most industrialised economy concludes it needs dispatchable thermal capacity to underpin a renewables-heavy system. The question is not whether firm power is needed, but how to make it as clean and flexible as possible.
Second: Does this argument talk over Africa’s ambition to leapfrog fossil fuels?
No. It is designed around that ambition. Wärtsilä launched the world’s first large-scale 100% hydrogen-ready engine power plant concept in 2024, certified by TÜV SÜD, with orders opening in 2025. Ammonia engine tests now demonstrate up to 90% greenhouse gas reductions versus diesel. These are not roadmaps. They are ready-to-use technologies. The honest difficulty is timing. Sub-Saharan grids averaged 56 hours of monthly outages in 2024. The African diesel generator market is growing at nearly 7% a year, projected to reach 1.3 billion dollars by 2030. Nigerian businesses spend up to 40% of operational costs on fuel for backup power. That is the real counterfactual – not a continent neatly powered by sun and wind, but a billion-dollar diesel habit deepening every year the grid stays unreliable. Even Germany is tendering 10 GW of hydrogen-ready gas plants with mandated conversion by 2035 to 2040. If Europe’s largest economy needs transitional thermal flexibility to backstop an 80% renewables target, insisting low-income African nations skip that step is not climate leadership. It is development deferred.
Third: Does the carbon comparison include full life cycle methane?
It must. Methane leakage materially worsens the climate profile of gas-to-power because methane is a far more potent greenhouse gas than CO₂. If leakage exceeds a few per cent of production, gas loses its advantage over coal on a 20-year timeframe.
But the IEA notes that 40% of fossil methane emissions could be eliminated at no net cost with existing technology. My claim that gas has a lower footprint than coal is conditional on aggressive methane management – eliminating flaring and venting, enforcing measurement under frameworks like the EU Methane Regulation and OGMP 2.0. Without those conditions, the arithmetic fails. But the real choice in most African markets is not between pristine gas and pristine renewables. It is between ageing coal, a growing fleet of unregulated diesel generators, and new fuel-flexible plants that start or transition to gas and convert to hydrogen or ammonia on a contractual schedule. Displacing diesel and coal with well-managed gas in future-fuel-ready engines cuts CO₂, local pollution, and water use now, while building the infrastructure for fuels that eliminate fossil dependence.
The critics are right to demand rigour, full life cycle accounting, methane transparency, and credible timelines. Those are exactly the conditions that make a lean-carbon pathway work. Africa does not seek permission to pollute. It seeks the tools to end energy poverty while peaking emissions early and declining fast. Build engine power plants that run on available fuel today. Mandate their conversion tomorrow. The carbon overdraft stays small. The payback stays fast. And the technology to switch to sustainable fuels is already here.
Louis Strydom is the Director of Growth and Development for Africa and Europe at Wärtsilä Energy
You’re back home after mudik (homecoming), the suitcases are unpacked, and the excitement of being with family for Eid already feels like a long time ago. But just because Eid is over doesn’t mean the special connection of being with family has to fade. Here are the best group chat features for beating the post-Raya blues.
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Keep The Vibe Going by Sharing Ramadan Highlights
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Keep the Memories Rolling with Status: Your Status feed doesn’t have to go quiet just because you’re back home. Post the most memorable throwback photos from the Eid reunion and add questions to spark responses like “What was your favourite Raya dish?” Add music and stickers to Status to keep the energy alive.
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Express Yourself with Text Stickers: Turn inside jokes, family slogans, or a favourite Eid quote into a Text Sticker. It’s a quick, personalised way to add some warmth and humour to the group chat.
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Skip the Stock Cards, Use Meta AI for a Personal Touch: Don’t just send a generic “Hi” or “Good morning” in the family chat. Use Meta AI to make your personalised greeting card or quickly transform a single photo into an animated image to send a heartfelt, animated check-in.
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Schedule The Next Reunion
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Plan Your Next Post-Raya Get-Together: The blues often hit when the fun ends. Keep spirits up by creating a new Event in the group chat right away. Add event reminders so everyone doesn’t miss the opportunity to connect.
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Schedule a Call, Don’t Just Say “Call Me”: Carry on the family tradition of staying connected, even when you’re miles apart. Tap + then Schedule a call in the Calls tab to lock in a regular “Post-Raya Check-in” video call. Send a reminder so everyone can join on time.
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Keep the Raya Spirit Alive by Getting Everyone Involved
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Assign yourself a fun “tag” in the family group: Are you the one who always ends up cooking? Or the one who plans the itinerary for family trips? Or the master of GIFs who keeps everyone amused? Use the Member Tag feature in the group to give yourself a witty, funny, or practical role—”Next Event Planner” or “Tech Support Guru,” maybe?. Member tags can be customised for each group you’re in.
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Share a Spontaneous ‘I Miss You’ Video: Did you just see something that reminded you of the reunion? Press and hold the camera icon to record a spontaneous Video Notes message. It’s faster than typing and instantly brings warmth and real-time emotion back into the group.
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Digital Hugs: Making the Long-Distance Moment Count
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Share a Moving Memory: Don’t just send a still photo. Share a Live or Motion Photo to capture the ambient sound and movement of a recent Eid moment. It makes your memories feel more vivid, personal, and real—a perfect antidote to feeling disconnected.
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Your Group Chat Background: Create a vibe with Meta AI: Don’t settle for a plain background for your family group chat. Use Meta AI to generate unique, custom chat wallpapers that reflect something uniquely memorable to your family: be it food, travel or a sport that unites everyone. Every time you open the chat, you’ll feel the warmth, not the distance.
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Make Sure No One Misses Out
No More FOMO: Send the Conversation History: Just added a family member who couldn’t make it to mudik? When adding a new member, you can now send up to 100 recent messages with the Group Message History feature. No need to recap; let them catch up instantly and feel included from the first tap.
By Olumide Balogun
Nigerians are natural explorers. Whether finding the best supplier in Balogun market, hunting down a recipe for party jollof, or looking for the most affordable flight out of Lagos, we are always searching.
Today, human curiosity is expanding, and the way Nigerians express it is evolving. We are speaking to our phones, snapping photos of things we like, and asking incredibly complex questions. For the Nigerian business owner, understanding this shift is a massive opportunity to get discovered by eager customers.
Here are four ways AI is rewriting how Nigerians search, along with simple steps to ensure your business is exactly what they find.
1. Visual Discovery is the New Normal
People are increasingly using their cameras to discover the world around them. Picture someone spotting a brilliant pair of sneakers in traffic and wanting to know exactly where to buy them. Today, shoppers simply take out their phones and search visually.
Tools like Google Lens now process over 25 billion visual searches every single month, and many of these searches are from people looking to make a purchase.
How to adapt: Your product’s visual appeal is paramount. Make sure you upload clear, high-quality images of your products to your website and social media. When a customer snaps a picture of a bag that looks like the one you sell, having great photos ensures your business pops up in their visual search results.
2. Conversations Replace Simple Keywords
Shoppers are asking highly nuanced, conversational questions. They are typing queries like, “Where can I find affordable leather shoes in Ikeja that are open on Sundays and do home delivery?”
To handle these detailed questions, new features like AI Overviews act like a superfast librarian that has read everything on the web. It provides users with a perfectly organised summary and links to dig deeper.
How to adapt: Answer your customers’ questions before they even ask. Create detailed, helpful content on your website and fully update your Google Business Profile. List your opening hours, delivery areas, and unique services clearly. This ensures the technology easily finds your details and recommends your business when a customer asks a highly specific question.
3. Intent Matters More Than Exact Words
Predicting every single word a customer might use to find your product is a huge task for any business owner. Thankfully, modern search technology focuses on the underlying need behind a search.
If someone searches for “how to bring small dogs on flights,” AI understands that the person likely needs to buy an airline-approved pet carrier. The technology looks at the true intent of the shopper.
How to adapt: You no longer need to obsess over guessing exact keywords. By using AI-powered campaigns, you allow the technology to understand your products and match them to the customer’s true needs. Your business will show up for highly relevant searches, bringing you customers who are actively looking for solutions you provide.
4. Smart Assistants Handle the Heavy Lifting
Running a business in Nigeria requires incredible hustle. Managing digital marketing on top of daily operations takes significant time and energy. The next frontier in digital advertising introduces agentic capabilities, which hold a simple promise of delivering better results for your business with much less effort.
The technology now acts as your personalised assistant.
How to adapt: You can simplify your marketing by using the Power Pack of AI-driven campaigns, including Performance Max. You simply provide your business goals, your budget, and your creative assets like photos and videos. The AI automatically finds new, high-value customers across Google Search, YouTube, and the web. It adapts your ads in real time to match exactly what the shopper is looking for, allowing you to focus on running your business.
The language of curiosity is constantly expanding. Nigerians are discovering brands in entirely new ways using cameras, voice notes, and highly specific questions. By understanding these behaviours and embracing helpful AI tools, you can let the technology connect eager customers directly to your digital doorstep.
Olumide Balogun is a Director at Google West Africa
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