Nigerians Struggle With Rising Cost of Living as 2027 Elections Approach

Millions of Nigerians are facing worsening financial pressure as the rising cost of food, housing, electricity and transport continues to outpace household incomes, months before the country heads toward the 2027 general elections.

For many workers, salaries that once covered basic needs now run out within days. Grace Adama, a health NGO worker in Abuja earning 135,000 naira ($99) a month, said she struggles to meet her expenses despite earning nearly twice the current minimum wage.

“If I’m paid today, my salary stays with me just for one week,” she told Reuters, citing rising costs of housing, electricity and other essentials.

The economic hardship has intensified since President Bola Tinubu introduced major reforms, including the removal of fuel subsidies, naira devaluation and reductions in electricity subsidies.

The government argues that the reforms were necessary to prevent a deeper fiscal crisis and stabilize the economy in the long term. However, their immediate impact has been painful for households.

The cost of preparing a typical pot of jollof rice is now more than twice what it was when Tinubu took office, according to an index by SBM Intelligence. Petrol prices have also risen sharply following the removal of subsidies and changes in the value of the naira.

Economic Reforms Boost Investor Confidence

While ordinary Nigerians continue to struggle, investors have responded positively to the government's economic reforms.

Foreign capital inflows into Nigeria reached a six-year high of about $23 billion last year, while the country's stock market has risen significantly this year.

The government has also highlighted the expansion of local participation in the oil industry and the operations of the 650,000-barrel-per-day Dangote Refinery as signs of growing economic confidence.

However, the benefits of these developments have yet to reach a large proportion of Nigerians. Fewer than 5% of Nigerian adults invest in the capital markets, while businesses and households continue to face high borrowing costs.

The Central Bank's key interest rate remains at 26.5%, as policymakers attempt to control inflation, which is approaching 16%.

Rising Discontent Ahead of Elections

Public dissatisfaction is becoming increasingly visible as Nigerians struggle to adjust to higher prices.

A June voter sentiment survey by SBM Intelligence found that about 80% of respondents believed the country was moving in the wrong direction.

Security remains another major concern, with kidnapping and other forms of insecurity continuing to affect communities across the country.

Despite the growing frustration, analysts say President Tinubu could still face a strong challenge only if the opposition parties succeed in forming a united front.

SBM Intelligence Chief Executive Cheta Nwanze said the opposition remains fragmented, making it difficult for it to effectively challenge the president.

Meanwhile, government officials maintain that Nigerians will eventually benefit from the reforms if inflation declines and interest rates fall.

Finance Minister Taiwo Oyedele acknowledged that the government needs to do more to ensure that economic growth translates into improved living standards for ordinary citizens.

For many Nigerians, however, the key question is how soon the promised benefits of the reforms will be felt in their daily lives.