Nigeria is a lot right now. If you've been scrolling through social media or catching the headlines, you've probably heard that the country is either on the brink of a total breakthrough or a massive headache. Honestly, it depends on who you ask. But if we’re looking at the actual national news in Nigeria this January, the reality is way more nuanced than the "doom and gloom" or "renewed hope" slogans suggest.
We are currently sitting in what the Finance Minister, Wale Edun, calls a "consolidation phase." Sounds fancy, right? Basically, it means the government is doubling down on the painful reforms started a couple of years ago. We’re talking about the fuel subsidy removal and the naira float.
Whether you're a business owner in Onitsha or a tech bro in Yaba, these policies have likely hit your pocket. Hard. But there’s a weird, quiet shift happening in the numbers that most people aren't talking about yet.
The Economy: Is Inflation Finally Chilling Out?
Let’s get into the meat of it. For the longest time, inflation was like a runaway train. In 2024, it was peaking above 33%. You’d go to the market on Monday, and by Thursday, the price of a bag of rice had jumped. It was exhausting.
Fast forward to right now, January 2026. The latest data shows annual inflation has actually slowed down to around 15.15%. That’s the lowest it’s been since 2020.
Now, don't get me wrong. Prices aren't necessarily "low." They’re just not rising as fast as they used to. It's a bit like a car slowing down from 100mph to 40mph. You're still moving forward, but you’ve stopped feeling like you’re about to crash into a wall.
- Food Prices: This is the big one. Food inflation has eased to about 10.84%. A huge part of this is thanks to a decent harvest season and a slightly more stable naira, which has been hovering below the 1,500 mark against the dollar.
- The Debt Situation: You might have seen headlines about Nigeria’s debt hitting ₦152 trillion. That sounds terrifying. But Wale Edun recently explained that about ₦49 trillion of that isn't "new" debt—it’s just the old dollar debt being revalued because the naira is weaker now.
Why the Central Bank is Bullish
The CBN is projecting a GDP growth of roughly 4.49% for the year. They’re betting on the fact that the banking sector recapitalization—where banks have to raise more capital to stay alive—is going to make the financial system "bulletproof."
But honestly? Most Nigerians aren't looking at GDP charts. They’re looking at the price of a gallon of fuel. And while the Dangote Refinery is now a major player, the price at the pump is still a touchy subject. There’s a constant tug-of-war between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the refinery over import costs and local pricing. It’s a mess, frankly.
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New Tax Laws: Who’s Actually Paying?
If you haven't heard about the Nigeria Tax Act 2026, you need to pay attention. This is probably the biggest shake-up to our tax system in decades. The government basically realized that the old system was a tangled web of "area boy" levies and confusing federal taxes.
Starting this month, there’s a new tax-free threshold of ₦800,000.
If you earn less than that in a year, you don't owe the federal government a dime in income tax. It’s a huge win for low-income earners who have been squeezed by the high cost of living.
For the small business owners, the news is even better. If your annual turnover is below ₦50 million, you’re looking at zero corporate income tax. The goal is to let small businesses breathe so they can actually grow and hire people.
The Digital Shift
Everything is going digital now. The newly empowered Nigeria Revenue Service (the agency formerly known as FIRS) is pushing for automated VAT invoicing. They’re trying to move away from those "tax man" visits that usually end in a bribe or a closed shop.
Power Grid: No More Total Blackouts?
We’ve all been there. You’re in the middle of a movie or an important Zoom call, and phew—the light goes out. National grid collapses used to be a weekly sport in Nigeria.
The Minister of Power, Adebayo Adelabu, has been making some bold promises for 2026. He claims that the "groundwork" laid in 2025 through the Siemens deal (the Presidential Power Initiative) is finally paying off.
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We’re seeing a massive shift in the 2026 budget:
- Decentralization: The government is moving away from the idea that one big grid can power everything.
- Rural Electrification: About ₦502 billion—nearly half of the power budget—is going to the Rural Electrification Agency (REA).
- Mini-Grids: They’re building solar mini-grids for universities like Delta University, Agbor, and the Federal University of Petroleum Resources, Effurun.
It’s a smart move. Instead of trying to fix a 50-year-old grid all at once, they’re creating "islands" of power. If one part of the country goes dark, the others stay lit. It’s not perfect yet, but the frequency of total system collapses has definitely dropped.
Security: The New Surge in Kidnappings
I wish I could say the national news in Nigeria was all about economic growth and solar panels. But we have to talk about the elephant in the room: security.
There has been a heartbreaking surge in child abductions recently. It’s been over a decade since the Chibok girls were taken, and yet, we are still dealing with the same headlines. The Committee on the Elimination of Discrimination against Women (CEDAW) recently released a report highlighting that at least 91 of the original Chibok girls are still missing or in captivity.
The conflict in the North has evolved. It's not just "Boko Haram" anymore. It's a mix of banditry, farmer-herder clashes fueled by climate change in the Sahel, and purely commercial kidnapping-for-ransom.
The government’s response has been to push for a decentralized policing system. President Tinubu has been vocal about the need for state-regulated forest guards and local accountability. But for the families in Kaduna or Plateau, these "policy frameworks" feel a world away from the reality of living in fear.
What to Watch in Politics: The 2027 Shadow
Even though the next election is a year away, the political maneuvering has already started. Senator Datti Baba-Ahmed has officially declared his intention to run for President in 2027.
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The opposition is currently a bit of a jigsaw puzzle. You’ve got Peter Obi criticizing the government’s ₦8 trillion debt write-off for the NNPCL, calling it "fiscal recklessness." Then you’ve got Nyesom Wike—now the FCT Minister—locked in a bitter feud with the Rivers State Governor, Siminalayi Fubara.
It’s messy. It’s loud. It’s very Nigerian.
The Davos Debut
On a more global note, Nigeria is making a big splash at the World Economic Forum in Davos this month. They’ve set up the first-ever "Nigeria House" on the Davos Promenade. It’s basically a high-end showroom to tell global investors: "Look, we’ve done the hard work. Our taxes are simplified, our grid is getting better, and we are open for business."
What Most People Get Wrong
People often think Nigeria is a monolith. They hear "national news" and assume the whole country is either booming or burning.
But Nigeria in 2026 is a country of contradictions. You have the tech sector in Lagos attracting millions in VC funding, while rural farmers are struggling with desertification and insecurity. You have a government that’s successfully slowing down inflation while the average citizen still feels "broke."
The nuance is that we are in a transition.
The reforms are working on paper, but the "human" part of the economy is still catching up. The success of 2026 depends entirely on whether the government can turn those macroeconomic wins—like the 4.68% growth target—into actual jobs for the 10 million people they want to empower through the Renewed Hope Ward Development Programme.
Actionable Insights for 2026
- Check Your Tax Bracket: If you’re an employee or business owner, re-evaluate your tax filings. With the ₦800,000 threshold and the ₦50m turnover exemption for SMEs, you might legally owe significantly less than you did last year.
- Invest in Energy Efficiency: Even with the grid improvements, the cost of power is going up. If you're running a business, look into the REA’s mini-grid initiatives or solar incentives. The 2026 budget is heavily skewed toward renewable energy tax breaks.
- Stay Informed on Security: If you are traveling or doing business in the North-West or North-Central zones, don't rely on old maps. The security situation is fluid. Use local intelligence and official security alerts before moving goods.
- Diversify into Non-Oil Sectors: Non-oil exports grew by 21% last year. The government is throwing everything at agriculture, solid minerals, and the creative economy. If you’re looking for where the "easy" money (and government support) is, it’s no longer in oil.
Nigeria is a tough place to navigate, but for the first time in a long time, the chaos seems to have a bit of a plan behind it. Whether that plan actually puts food on the table for everyone remains to be seen.