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Nigeria’s economy falls into ‘depression’ as UK economy enters recession

Millions of Nigerians are facing hunger, erosion of purchasing power and insecurity due to reforms that drove up inflation, InsideNigeria understands.

While the slogan “let the poor breathe” became popular during the campaign of Bola Tinubu last year, many are now saying breathing has become more difficult under the current administration. Quite literally, there has been an alarming increase in the price of inhalers.

President Bola Tinubu scrapped a popular but costly fuel subsidy last May and lifted restrictions on currency trading, which more than tripled petrol prices. Africa’s biggest economy is now grappling with a cost of living crisis, fueled by the highest inflation rate in nearly three decades.

The widespread insecurity has also hit agricultural output, fuelling food price inflation.

In another related news, Britain’s economy fell into a recession in the second half of 2023, a tough backdrop ahead of this year’s expected election for Prime Minister Rishi Sunak who has promised to boost growth. Gross domestic product (GDP) contracted by 0.3% in the three months to December, having shrunk by 0.1% between July and September, official data showed.

The fourth-quarter contraction was deeper than all economists’, which had pointed to a 0.1% decline. Sterling weakened against the dollar and the euro. Investors added to their bets on the Bank of England (BoE) cutting interest rates this year and businesses called for more help from the government in a budget plan due on March 6.

Thursday’s data means Britain joins Japan among the Group of Seven advanced economies in a recession, although it is likely to be short-lived and shallow by historical standards. Canada has yet to report GDP data for the fourth quarter.