The Nigerian Economy hit worst levels during the Buhari-led administration says global regulators

The Nigerian economy under President Muhammadu Buhari is worse than it was ten years ago, according to the World Bank.  Its flagship research for 2022, titled "Global Economic Prospect," had these conclusions.

The report further noted that the COVID-19 pandemic has undone at least a decade's worth of progress in per capita income in developing countries including Angola, Nigeria, and South Africa. Per capita incomes were also predicted to be lower in 2022 than they were ten years ago.

It added that nearly 110 million people in nations like Nigeria, the Democratic Republic of the Congo, Ethiopia, and South Sudan are living in conditions characterized by extreme poverty, and warned that the hike in commodity prices could intensify the detrimental effects of growing poverty on economic growth in these nations.

Despite the fact that the Nigerian economy is plagued by a number of socioeconomic issues, the nation has maintained double-digit inflation since February 2016, according to Nairametrics. On the other hand, between January 2013 and January 2016, Nigeria experienced a single-digit inflation rate.

Unfortunately, the spending power of Nigerians has been rapidly declining as a result of weak policies, adverse global economic conditions, and socioeconomic vices. 

The World Bank report emphasized that a further increase in food costs would reduce households' spending power and decrease consumer confidence, leading to more restrained growth and impeding the fight against poverty.

The results of the study support a similar report done by the Economic Community of West African States (ECOWAS), which found that the percentage of people barely surviving on less than $1.90 per day increased from 2.3% to 2.9% in 2021 and that country debt burdens rose amid a sluggish economic recovery, dwindling financial capacity, and weak resource management.

The international bank criticized Buhari's budgetary measures last year, pointing out how the Central Bank of Nigeria's currency rate policies hurt investments and fueled inflation.

In July 2022, the annual inflation rate surged to a level not seen in 17 years as a result of major increases in the price of energy and basic food products. According to the National Bureau of Statistics (NBS), Nigeria's inflation rate increased to 19.64% in July from June's 18.6%. 

According to Nairalytics' data, the health index, which measures the expense of healthcare in the nation, increased by 122.3% between May 2015 and July 2022, while the annual rate of h Similar increases were seen in education (132.5% rise), restaurants and hotels (132.5%), and transportation (141.7% increase) over the course of the seven-year Buhari-led administration.

It's important to note that, despite substantial efforts to lessen Nigeria's reliance on food imports, the country is still largely susceptible to the world food crisis. Furthermore, a significant factor in the increase in the food index was the 201.5% increase in the imported food index.

Similarly, the index for household water, electricity, gas, and other fuel increased by 119.7% between May 2015 and July 2022.ealth inflation decreased to 15.95% in July from 15.6% in June.

Nigerians must now contend with the increased cost of nearly everything as the underlying problems continue to exist everywhere.

However, the Organization of Petroleum Exporting Countries (OPEC) production curbs are expected to gradually ease, and other domestic regulatory reforms are also expected to help Nigeria's economy develop by 2.5% in 2022, according to the World Bank.