Nigeria Records Highest Inflation Rate in 28 Years

In a concerning economic development, Nigeria has hit a staggering milestone with its inflation rate skyrocketing to 31.7 per cent in February 2024, marking the highest level witnessed in 28 years.

This revelation comes from the latest report released by the National Bureau of Statistics (NBS), shedding light on the country’s escalating economic challenges.

The NBS report, analyzing the Consumer Price Index (CPI) for February 2024, also disclosed a substantial surge in food inflation, which climbed to 37.92 per cent during the same period. This alarming increase represents a significant jump from the 35.41 per cent recorded just a month earlier in January 2024.

On a year-on-year (YoY) basis, Nigeria’s headline inflation rate witnessed a stark rise of 9.79 percentage points compared to February 2023, underscoring the intensifying inflationary pressures gripping the nation’s economy.

The month-on-month (MoM) basis further accentuated the inflationary woes, with the headline inflation rate for February 2024 standing at 3.12 per cent, reflecting a noticeable acceleration in the pace of price increases compared to the preceding month.

The surge in food inflation, a critical component of Nigeria’s CPI, was attributed to steep hikes in the prices of essential commodities such as bread and cereals, potatoes, yam, fish, oil, meat, fruits, and beverages like coffee, tea, and cocoa.

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Geographically, certain regions bore the brunt of the inflationary wave more severely than others. States like Kogi, Rivers, and Kwara experienced the highest food inflation rates on a YoY basis, while Bauchi, Plateau, and Taraba witnessed relatively slower increases. On a MoM basis, Adamawa, Yobe, and Borno saw the most significant spikes in food prices, contrasting with Cross River, Niger, and Abuja, which reported more moderate rises.

The stark reality of Nigeria’s economic challenges underscores the urgent need for robust interventions to curb inflation and alleviate its adverse effects on both the economy and the populace’s purchasing power. As inflation continues to soar, policymakers face mounting pressure to implement effective measures to stabilize prices and restore economic stability.