After the Covid-19 pandemic in 2020, the world was met with a great lost and no country was spared. 2022 was a year to recover, restructure and improve each country economy which many countries have been doing, some countries are just staying in the survival line (not going up or down) while some countries economy continues to depreciate.
Image generated from POE AI
Taking my country Nigeria as a case study. According to my research and what I know and faced
Since 2022, Nigeria has experienced some fluctuations in its inflation rate. The country has been grappling with high inflation, which has been a cause for concern among its citizens and policymakers. It’s like there is a factor somewhere which is always ready to increase its inflation rate.
In 2022, Nigeria's inflation rate was around 18.7%. This was primarily driven by factors such as increased government spending, rising food prices, and foreign exchange challenges. These factors contributed to a surge in the cost of living for many Nigerians.
In subsequent years, the inflation rate has continued to fluctuate. In 2023, it rose to approximately 20.7%, posing challenges to the country's economic stability. The government and central bank have implemented various measures to address this issue, including tighter monetary policies and efforts to diversify the economy.
Immediately after the election of the new government/president. The first policy that was made to made a better country was the removal of subsidies on petroleum. The fact remains many people saw this as a goodwill policy with the aim of having more funds in the federal treasury which will help focus more monetary policies in other sectors of the country economy.
However, despite these efforts, the inflation rate in Nigeria remained stubbornly high. As of the most recent data available, in 2024, the inflation rate in Nigeria stood at around 18.5%. This persistent inflation has had a significant impact on the purchasing power of Nigerians and has made it more difficult for the average citizen to afford basic necessities.
The Nigerian government continues to work towards stabilizing the economy and reducing inflation. Efforts are being made to boost agricultural productivity, attract foreign investment, and improve infrastructure, all of which are aimed at fostering economic growth and curbing inflationary pressures.
17th and 18th of February 2024, the people of Kwara state went on protest to the house of their Emir to show how much they are suffering and how high the cost of living has been.
This is a picture I took of people in Ogun state after a gas station offer to give free fuel for their first 200 customers
Currently, most of the blames for the hyperinflation has been moved to the depreciation of the country currency. As at 18th February 2024., $1 equals 1,617 naira. Now imagine if you earn $1,617 from crypto and you convert that to naira, that’s more than 1millions Naira.
The depreciation of the Naira against the dollar can have several effects on Nigeria's economy. Let me explain.
A depreciating Naira means that it takes more Naira to buy a certain amount of dollars. This can lead to higher import costs for goods and services, as most international trade is conducted in dollars. As a result, the prices of imported goods, such as electronics, vehicles, and machinery, tend to increase. This can lead to higher inflation and a decrease in the purchasing power of Nigerians. And the sad part is Nigeria deals more with imported goods which makes most of her products cost.
In conclusion
The citizens of the country are clamoring for change, while most people are going into tech, crypto trading and web3. There are still many policy that has been implemented to make this little side hustle difficult for the trades but one thing that Nigerians are known for is their resilience and strong will.
#februaryinleo #cryptomonday
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