Nigerians have expressed concerns as the country’s inflation rate climbed to 31.70% in February 2024, according to the latest data released by the National Bureau of Statistics (NBS) on Friday, March 15.
This represents a surge from the 29.90% inflation rate recorded in January 2024.
The NBS report, titled “Consumer Price Index and Inflation Report” for February, paints a grim picture of rising prices for essential goods and services.
“This is a very serious situation,” said Lagos-based economist Dr. Aisha Hassan in an interview with Channels Television.
“Inflation at this level eats away at people’s purchasing power, making it nearly impossible to afford basic necessities like food, shelter, and healthcare,” she added.
The NBS report highlights a troubling trend: food inflation, a major driver of overall inflation in Nigeria, reached a staggering 37.92% in February. This sharp rise can be attributed to a confluence of factors, including disruptions in global supply chains due to the ongoing war in Ukraine, insecurity in food-producing regions within the country, and the devastating effects of climate change on agricultural output.
The rising cost of food poses a major challenge for many Nigerians, who already dedicate a significant portion of their household income to food purchases.
Meanwhile, the Nigerian government is facing mounting pressure to take decisive action to address the inflation crisis. Calls are growing for measures such as increased investment in domestic food production to reduce reliance on imports and stabilize prices. Adjustments to monetary policy by the Central Bank of Nigeria might also be necessary, but such measures might come at the cost of dampening economic growth.
Expanding social safety net programs has also been suggested as a way to provide some relief to the most vulnerable Nigerians struggling with rising living costs.
Some analysts have said the current inflationary pressures in Nigeria are a complex issue with no easy solutions. The government, alongside the private sector and civil society, will need to work together to implement effective policies that address the root causes of inflation and provide much-needed support to the Nigerian people.
