Affliction will probably arise again
2025 might be a better year for Nigerian consumers… or not
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- Margaret
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Let’s get into today’s edition:
2025 might be a better year for Nigerian consumers… or not
Inmates are recreating Prison Break scenes in Kogi state
The Big Deal
2025 might be a better year for Nigerian consumers…or not
If the header of today’s edition is giving church, it’s because we’re trusting God for a miracle. 2024 was a brutal year for Nigerian manufacturers. You probably don’t need data to know how bad it was, but the stats are in, and we think you should know what the numbers are saying.
Manufacturers in Nigeria went through unending problems in – the cost of materials went up, the naira kept losing value, and banks charged high interest on loans. Many companies had to cut costs by increasing prices, laying off workers, or even shutting down some parts of their operations just to survive.
The cost of importing raw materials also increased by a shocking 88% in 2024. Some businesses tried to reduce their reliance on importing materials from other countries, but the attempt wasn’t helpful.
On paper, manufacturers made more money in 2024—total revenue for major companies increased by 67.7%, rising from ₦4.5 trillion in 2023 to ₦7.6 trillion. But their profit didn’t match the same energy. In reality, these guys suffered losses of 76.6%, amounting to ₦407.4 billion of their total earnings. So, even though businesses were bringing in more money, the cost of running these businesses was so high that they still ended up deeper in losses.
Despite all this, some companies are still optimistic. If the naira remains stable and energy prices drop, things might improve in 2025.
Why is this a big deal?
It’s too soon to tell whether things will be different in 2025, but we’re not that optimistic. Manufacturers are currently begging the government to create stable policies, improve electricity and roads, and simplify the tax system so businesses can operate more smoothly. Whether those changes will happen—or if another tough year is ahead—isn’t clear yet, but let’s walk you through what 2025 would look like if things don’t change.
If the exchange rate keeps misbehaving, production costs will keep rising, and more businesses will choose between hiking prices, downsizing, or shutting down altogether. In Ogun state alone, over 25% of bottled water producers have shut down their businesses because of outrageous taxes. It’s so bad that even if the naira gains stability by some form of miracle, taxes and electricity will still cause prices to increase.
The government has been imposing several levies on business owners, and with the introduction of increased Value Added Taxes (VAT), there isn’t much hope for Nigerian consumers. The hike, which is supposed to take effect this year, will raise VAT from 7.5% to 10%.
We’re almost four months into the year, and things are not looking that great yet. It would take a miracle for affliction not to arise again.
Inmates are recreating Prison Break scenes in Kogi state
2025 hasn’t even reached its peak, and we’ve already seen all kinds of crazy things. Very high on the list of crazies is the prison break that happened on Monday, March 24, where 12 inmates escaped from the Medium Security Custodial Centre in Koton-Karfe, Kogi State.
In a statement released on Monday the Nigerian Correctional Service (NCoS) says five of the escapees have been recaptured, while seven are still out there somewhere, possibly blending into the streets like normal citizens.
According to the NCoS spokesperson, Abubakar Umar, the jailbreak happened in the early hours of Monday when some inmates “manipulated padlocks” and made a run for it. The details are still coming together, but the Acting Controller, General of Corrections, Sylvester Ndidi Nwakuche, and other security agencies have started looking into it.
The Minister of Interior, Olubunmi Tunji-Ojo, has also stepped in, calling the incident “unfortunate” and ordering an immediate investigation. He also promised to use the NCoS’s “robust biometrics and technology” to track down the remaining inmates.
Meanwhile, Umar confirmed that all 12 escapees were awaiting trial, meaning they hadn’t even been sentenced yet before deciding to take matters into their own hands. Sadly, one officer was killed during the incident.
And as crazy as this whole thing sounds, this isn’t the first time it's happening in Kogi. In September 2021, 294 inmates escaped from prison, making the 2025 jailbreak look like child’s play in comparison. I44 inmates also escaped in 2014. You can search “prison break in Nigeria” and get crazy results for every year you type. Most of these jail breaks always involve gun men who somehow manage to overpower the Nigerian police force or silly reasons like “manipulated padlocks”. We’re not sure what’s going on in Nigeran prisons but clearly the government has some serious work to do.
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2025 might be the worst year in the history of Nigerian politics. We’re not even halfway into the year, and we’ve already seen a sitting president break the constitution. Now, we’re witnessing what seems to be a final act of injustice in the Akpoti-Udughan vs Akpabio case.