Nigeria's Key Political and Economic Trends in 2024

Nigeria’s Key Political and Economic Trends in 2024

In 2024, Nigeria, Africa's most populous nation, faces significant political and economic challenges. President Bola Tinubu’s administration is implementing economic reforms like unifying exchange rates and removing fuel subsidies, which have led to inflation and currency challenges. Despite projected GDP growth of 3.1% fueled by reforms and oil recovery, inflation hits 33.95%. Security concerns regenerate investor hesitance. Diplomatically, Nigeria strengthens ties with the U.S. and India, focusing on security collaboration and economic partnerships, while hosting military events to enhance regional cooperation. Overall, Nigeria’s narrative is one of reform-driven progress amidst deep-rooted structural issues.

advtanmoy 25/11/2024 5 minutes read

Political & Economic Events Shaping Nigeria in 2024

Reference Date: November 25, 2024

Nigeria, commonly known as the giant of Africa with more than 150 million people is the most populous country in Africa. The President of Nigeria is both head of state and head of government and is elected through a multi-party system, by the people. The President heads the Federal Executive Council, also known as the cabinet and is the Commander-in-Chief of the Armed Forces of Nigeria. With one of the biggest democracies in the world and a presidential system of government, it has a dual economy, based on its rich natural resources, traditional agriculture and the trade sector.Nigeria is located at the extreme inner corner of the Gulf of Guinea on the west coast of Africa and lies between latitudes 3°15’ to 13°30’ N and longitudes 2°59’ to 15°00’ E. On the south, it is bordered by the Gulf of Guinea, on the west and north, it is bordered by the Republics of Benin and Niger respectively, and on the east, it adjoins the Cameroon Republic. Nigeria has a land area of 923, 768 km2 in which land comprises 910, 768 km2 and water accounts for 13, 000 km2.

Here are some key political and economic events shaping Nigeria in 2024:

Political Events

Implementation of Economic Reforms: The administration of President Bola Tinubu has continued to implement significant economic reforms. These include policies to unify exchange rates and remove fuel subsidies, which were initiated in 2023. The reforms aim to stabilize the economy but have faced challenges such as inflation and a weakened currency (PwCPeoples Gazette Nigeria)
Insecurity and Governance: Security remains a critical issue affecting Nigeria’s stability and investor confidence. Despite significant spending on defense over the past years, The government is under pressure to address ongoing challenges in the north and other regions. the Governments of the United States of America and the Government of Nigeria on the occasion of the sixth U.S.-Nigeria Binational Commission in Abuja on April 29-30, 2024. (Read here)
International Relations: Nigeria’s foreign policy has focused on regional leadership, including strengthening ties within ECOWAS. This is significant given ongoing political instability in West Africa, including coups in neighboring countries.

Economic Events

GDP Growth: Nigeria’s economy is projected to grow by approximately 3.1% in 2024, driven by reforms, oil production recovery, and improved policy environments. Key sectors contributing to this growth include financial services, ICT, and utilities.
Inflation and Monetary Policy: Inflation has risen sharply, reaching 33.95% by mid-2024. In response, the Central Bank of Nigeria has raised the monetary policy rate to 26.25% to combat inflationary pressures.
Improved Foreign Direct Investment (FDI): FDI has been on the rise, particularly in sectors like manufacturing and ICT. These trends reflect growing investor interest amidst reforms aimed at improving the ease of doing business.
Infrastructure Challenges: Despite a budget of ₦1.32 trillion for infrastructure development, the allocation remains below what is needed for significant progress, highlighting a gap in public investment.

These developments underline Nigeria’s complex socio-economic landscape in 2024, balancing reform-driven progress with persistent structural challenges.

Diplomatic and military events involving Nigeria in 2024

January 10-11, 2024: U.S. Marine Corps General Michael Langley and Sergeant Major Michael Woods visited Nigeria to strengthen bilateral cooperation. Discussions focused on countering extremism, regional security, and Nigeria’s leadership in addressing West Africa’s challenges. This emphasized the importance of U.S.-Nigeria collaboration in addressing security issues in the region (AFRICOMState Department).
August 28, 2024: Nigeria’s Chief of Defense Staff (CDS), General Christopher Musa, met with Niger’s Chief of Staff, General Moussa Barmou, in Niamey. The meeting aimed to deepen military collaboration, particularly through the Multinational Joint Task Force (MNJTF). Agreements included joint military operations, intelligence sharing, and border security measures to combat the proliferation of small arms in the region.
November 18-30, 2024: Nigeria hosted the African Military Games Association (AMGA) 2024. This event brought together over 2,000 military athletes from 32 countries, fostering inter-military cooperation and showcasing Nigeria’s leadership in African peace and security initiatives. The games symbolized unity and Nigeria’s significant role in promoting military and cultural diplomacy.

Nigeria’s diplomatic relationship with India

Nigeria maintains a multifaceted diplomatic relationship with India, marked by strong economic, defense, and cultural ties. Here are some highlights of their recent activities:

Defense Cooperation: In 2024, Nigeria and India reaffirmed their commitment to enhancing military collaboration. This includes intelligence sharing, joint training programs, and efforts to combat insecurity. Both countries view defense cooperation as a way to improve operational capabilities, particularly in areas such as maritime security and counter-terrorism (AfricanewsMinistry of Defence ).
Economic Partnership: India is Nigeria’s largest trading partner in Africa, with bilateral trade reaching $14.9 billion in 2022. This partnership encompasses sectors like energy, technology, and health. Both nations recently signed agreements to further boost trade and development, including cooperation on customs and cultural exchanges.
Diplomatic Engagements: The historic visit of Indian Prime Minister Narendra Modi to Nigeria in 2024 underscored the deepening ties between the two countries. Nigerian President Bola Ahmed Tinubu highlighted their shared goals of supporting Global South nations and fostering sustainable growth.
Cultural and Educational Ties: Nigeria and India have a long history of educational and cultural exchange programs. Approximately 60,000 Indians reside in Nigeria, and there are around 200 Indian companies operating there, contributing significantly to Nigeria’s economy and cultural integration.

These activities illustrate the robust and dynamic nature of Nigeria’s relationship with India, built on shared strategic interests and a history of mutual support. Both nations aim to expand their collaboration to address global challenges and promote regional stability.

Read more: