Nigeria's NEC Backs 90-Day Plan to Tackle Cost of Living Crisis

The National Economic Council (NEC) has endorsed a critical 90-day economic action plan proposed by the Federal Ministry of Finance, signalling a concerted effort to address Nigeria's persistent cost-of-living crisis. This strategic initiative, approved on Friday, 23 October 2026, aims to improve food affordability and fast-track projects designed to deliver immediate benefits to citizens.

According to Stanley Nkwocha, the Senior Special Assistant to the President on Media & Communications (Office of the Vice President), the plan underscores the government's commitment to stabilising the economy. The move comes as millions of Nigerians continue to grapple with high inflation and diminishing purchasing power, making the urgency of such interventions paramount.

Why the NEC Approves 90-Day Plan for Economic Relief

The newly approved 90-day plan is a direct response to the escalating economic pressures facing Nigerian households and businesses. Its core objectives are multi-faceted: to ease the burden of the cost of living, specifically by improving access to affordable food, and to accelerate the implementation of key projects. These projects are strategically selected for their potential to generate tangible, direct benefits for the populace, ranging from infrastructure development to social welfare programmes.

Nigeria's economy has been navigating a complex landscape marked by inflationary pressures and currency volatility. The rapid rise in the general price level, or inflation, has significantly eroded the value of incomes, making everyday goods and services more expensive. This situation has been exacerbated by global economic shifts and domestic supply chain challenges, particularly impacting food prices across the nation.

Understanding the Economic Context: Money Supply and Credit Trends

The NEC's decision arrives amid notable shifts in Nigeria's monetary landscape. Recent data indicates a substantial increase in the nation's money supply, which is the total amount of currency and other liquid assets in an economy. In a single month, Nigeria's money supply swelled by N7.5 trillion, reaching a staggering N146.6 trillion.

While an expanding money supply can indicate economic activity, a rapid increase without corresponding productivity gains often fuels inflation. Simultaneously, credit to the private sector, which represents loans extended by financial institutions to businesses and individuals, saw a decline of N537.6 billion in September, despite registering annual growth. This reduction in private sector credit can signal a tightening of lending conditions or reduced demand for loans, potentially hindering business expansion and job creation.

These dynamics present a challenging backdrop for the new economic plan. Policymakers must carefully balance efforts to inject liquidity and stimulate growth with the need to contain inflationary pressures. As we reported in "Nigeria's Central Bank Signals Policy Shift with Key Rate Cut to 23%", the Central Bank of Nigeria (CBN) has been actively adjusting its monetary policy to manage these economic forces.

Addressing Food Affordability and Unlocking Liquidity

A primary focus of the 90-day plan is to enhance food affordability, a critical component of the broader cost-of-living crisis. High food prices disproportionately affect lower-income households, exacerbating poverty and food insecurity. The plan likely includes measures to boost agricultural productivity, improve supply chain efficiency, and potentially implement targeted subsidies or interventions to stabilise staple food prices.

Beyond food, the plan aims to "optimise cost" and "unlock additional liquidity." Optimising cost refers to making government operations and project execution more efficient, reducing waste, and ensuring better value for money. Unlocking additional liquidity means making more funds available in the economy, either through government spending, easing credit access, or attracting investments. This could involve streamlining bureaucratic processes or leveraging existing assets to free up capital for productive use.

Such measures are crucial for stimulating economic activity and supporting businesses. Businesses, especially small and medium-sized enterprises (SMEs), often struggle with access to capital, or liquidity, which is the ease with which an asset can be converted into cash without affecting its market price. Increased liquidity can facilitate expansion, investment, and job creation, thereby contributing to overall economic growth.

Implications for Savers, Investors, and Businesses

For ordinary savers, the success of this 90-day plan could mean a potential stabilisation or even a slight reduction in the rate of inflation. This would help preserve the real value of their savings, which have been eroded by high prices. However, if the measures to inject liquidity are not carefully managed, they could inadvertently fuel further inflation.

Investors will be closely watching the plan's implementation for signals of economic stability and growth opportunities. Accelerated project delivery could create new avenues for investment in infrastructure, agriculture, and other key sectors. Businesses, particularly those involved in food production, logistics, and project execution, stand to benefit from the focused attention and potential funding streams. Improved cost optimisation within government could also translate to a more predictable and efficient operating environment.

However, the challenge lies in effective execution. Past economic plans have sometimes faced hurdles related to funding, coordination, and political will. The ability of the Federal Ministry of Finance to swiftly implement the proposed actions and demonstrate tangible results within the 90-day timeframe will be critical to building public and investor confidence.

What to watch

• Mid-December 2026: The conclusion of the 90-day action plan, with expected announcements on initial results and impact on food prices.
• Monthly Inflation Reports: Upcoming data releases from the National Bureau of Statistics will indicate whether inflationary pressures are easing.
• Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) Meetings: The CBN's decisions on interest rates will reflect its assessment of the plan's impact on inflation and liquidity.
• Government Budget Releases: Details on funding allocations for accelerated projects will provide insight into the scale and scope of the initiatives.

Frequently asked questions

What is the 90-day economic action plan approved by NEC?

The 90-day economic action plan, proposed by the Federal Ministry of Finance and endorsed by the National Economic Council (NEC), aims to address Nigeria's cost-of-living crisis. Its primary goals are to improve food affordability and accelerate the implementation of projects designed to deliver direct benefits to Nigerians.

Why is the Nigerian government focusing on food costs and liquidity?

The government is focusing on food costs because high prices significantly impact the cost of living for ordinary citizens, contributing to inflation and economic hardship. The plan also seeks to unlock additional liquidity in the economy to stimulate business activity, investment, and growth, which can be constrained by reduced private sector credit.

Who announced the NEC's approval of the economic plan?

The approval of the 90-day economic action plan by the National Economic Council (NEC) was announced by Stanley Nkwocha. He serves as the Senior Special Assistant to the President on Media & Communications, operating from the Office of the Vice President.

How does the plan relate to Nigeria's money supply and private sector credit?

The plan is being introduced amidst significant economic shifts, including a recent N7.5 trillion surge in Nigeria's money supply, reaching N146.6 trillion. Concurrently, credit to the private sector saw a N537.6 billion decline in September. The plan aims to manage these dynamics by optimising costs and strategically unlocking liquidity to support economic stability and growth.