Nigeria’s inflation surges to 27-year high

Nigeria’s inflation crisis reached a fever pitch in December 2023, soaring to a staggering 28.9%, the highest level in 27 years.

This surge, revealed by the National Bureau of Statistics (NBS) on Monday, paints a grim picture of an economy buckling under the weight of rising prices and eroding livelihoods.

The figure marks a significant jump from November’s 28.2% and a 7.58% higher than December 2022. The relentless upward trend since 2016 has become a burden for ordinary Nigerians, squeezing incomes, draining savings, and fuelling a nationwide cost-of-living crisis.

The December spike can be attributed to a confluence of factors. The removal of fuel subsidies sent transportation costs spiralling, while a weakening naira further stoked inflationary pressures.

Food Inflation

Food inflation, a potent contributor to the overall misery, jumped to 33.93% – a stark reminder of the everyday struggles faced by millions across the country.

NBS data also revealed troubling month-on-month increases, indicating that the pace of price hikes is accelerating.

While the Central Bank has attempted to tame inflation through interest rate hikes, their effectiveness remains debatable.

Analysts urge the government to go beyond monetary measures and address the underlying structural issues plaguing the economy. They say food security concerns, inefficient supply chains, and foreign exchange volatility need focused attention to break the inflationary spiral and bring relief to the suffering populace.