Nigeria Plunges into Economic Crisis as Currency Collapse Spikes Inflation, Hardship for Millions

Nigeria's currency has plummeted 230% in value over the past year, triggering high inflation that reached 29.9% in January, the highest since 1996. This has caused economic hardship for millions of Nigerians.

The currency crash and inflation spike result from poor implementation of recent economic reforms, including ending fuel subsidies without adequate measures to contain the shock.

Nigeria's economy relies heavily on oil exports, which have declined. This reduces foreign currency inflows needed to stabilize the naira currency.

The Central Bank has tried to clear the large backlog of foreign exchange demands and unify exchange rates, but dollar inflows remain insufficient.

With soaring prices for basic goods, many Nigerians are struggling to cope. The government has released some food stocks and plans further measures, but the crisis persists.