29/09/2025
Nigeria at 65 - Balancing Hard Realities with Enduring Promise
Nigeria turns 65 this October, a milestone that invites reflection on both progress and persistent challenges. Since independence in 1960, the nation has endured civil war, cycles of military rule, global oil shocks, and democratic transitions. Yet, despite repeated turbulence, Nigeria has remained united, resilient, and deeply influential within Africa and beyond. The anniversary is therefore both a celebration of survival and a sober reminder of unfinished business.
The most immediate challenge facing households is inflation. After subsidy removal and exchange rate reforms, inflation surged to nearly 35% in late 2024 before easing to just above 20% by August 2025. The Central Bank’s recent decision to cut interest rates, the first in five years was cautiously welcomed. Still, the relief has been modest. Food prices remain painfully high, driven by insecurity in farming regions and inadequate transport systems.
While monetary policy has slowed inflation, it has not solved its roots. The crisis is not only about money supply, it is also about weak agricultural productivity, unreliable power, and insecurity that prevents farmers and traders from getting goods to market. High interest rates stabilized the naira but left manufacturers and small businesses gasping for credit. Without structural fixes in energy, logistics, and food production, price pressures will continue to weigh heavily on ordinary Nigerians.
Institutional reform has been another defining theme of the past two years. The removal of fuel subsidies, unification of exchange rates, tax reforms, and partial implementation of the Oronsaye Report have been praised internationally as bold steps. They signal discipline and seriousness in fiscal management. Yet, domestically, many see them as harsh. Millions of low-income households are absorbing the shock with little protection. Social safety nets exist, but coverage is narrow, leaving the poor disproportionately exposed.
Debt service compounds the problem. An ever-larger share of revenue now goes into repaying loans, squeezing space for infrastructure, education, and health. Tax reforms have helped modestly but remain hampered by weak enforcement and entrenched interests. Until Nigeria significantly broadens its tax net and reduces leakages, fiscal fragility will remain a stubborn obstacle to development.
Public trust sits at the heart of these challenges. Nigerians understand that reforms are necessary, but they expect fairness and inclusion. The protests that followed subsidy removal in 2024 highlighted the danger of reforms that feel punitive to the poor while sparing the privileged. Citizens want stability, but also justice. Without transparency and a human face to reforms, political will can quickly collapse.
This erosion of trust has also fueled a darker trend, the spread of Ponzi schemes. From MMM in 2016 to newer platforms like Compoundly, WealthBuddy, and CBEX in 2025, millions of Nigerians have lost savings. These scams thrive in an environment of high inflation, rising unemployment, and weak financial literacy. For many, joining them is less about greed than desperation, a gamble for survival in a system they feel has already failed them.
The deeper issue is a crisis of confidence in formal institutions. When banks are seen as unfriendly, stock markets as elitist, and the state as untrustworthy, citizens turn to informal networks. Social media has amplified this vulnerability, offering fraudsters a cheap and direct line to millions. The social consequences are devastating, broken homes, depression, and a corrosive belief that even legitimate systems cannot be trusted.
Regulators such as the SEC, EFCC, and CBN have stepped up enforcement, but their actions often come too late. By the time arrests are made, families have already lost their life savings. Civil society groups are filling some gaps through financial literacy drives, but coverage remains patchy and urban-focused. A coordinated, nationwide campaign for financial education, paired with quicker regulatory interventions, is urgently needed.
Beyond domestic policy, Nigeria is also navigating its role in a rapidly shifting global order. Foreign Minister Yusuf Tuggar has steered a pragmatic course, maintaining ties with the U.S., China, and Europe while keeping Nigeria non-aligned in great-power conflicts. Economic strategy mirrors this, with recent policies aimed at strengthening self-reliance through investment in manufacturing, digital services, and intra-African trade.
Regional integration could be a powerful tool. The new ECOWAS digital economy framework, which harmonizes e-commerce and data rules across 12 countries, holds promise for boosting investment and digital access. If Nigeria champions its implementation, the country could cement its place as a regional technology and trade hub. But success will depend on political will, something that has historically stalled similar frameworks.
Security, however, remains the Achilles heel. Banditry in the northwest, Boko Haram’s persistence in the northeast, and separatist unrest in the southeast continue to undermine reforms. They not only destabilize communities but also choke food supply chains and deter investment. No reform, however well designed, can thrive without credible improvements in security. Stability is the foundation on which all other progress must rest.
And yet, amid these difficulties, Nigeria’s promise shines through. Its youthful population, cultural dynamism, and entrepreneurial drive remain unmatched in Africa. Nollywood and Afrobeats dominate global culture, its tech startups continue to attract investment, and projects like the Dangote Refinery showcase ambition for self-reliance. These successes remind the world and Nigerians themselves that the nation is far from a story of decline.
The path forward requires connecting reforms with real improvements in daily life. Inflation must be tamed not only through monetary tools but also by securing food supply and reducing dependence on imports. Institutional reforms must be transparent and equitable, not just applauded abroad. Financial literacy must spread so that desperation does not feed fraud. And foreign policy must create opportunities for trade and investment while safeguarding sovereignty.
At 65, Nigeria stands at a crossroads between resilience and fragility, between progress and frustration, between aspiration and reality. The choices made now will determine whether the next decade brings renewed stability and growth or yet another cycle of crisis. The nation’s story is still unfolding, and its greatest test lies in aligning its vast potential with the dignity and prosperity its people have long deserved.
©️ Adebamiwa Olugbenga Michael
