Nigeria’s untamed rising inflation under the government of President Bola Ahmed Tinubu in the last nine months has worsened the citizens’ misery.
Friday last week, the National Bureau of Statistics Consumers’ price index and inflation report showed that Nigeria’s headline inflation rose to 31.7 per cent and food inflation jumped to 37.95 per cent.
CPI measures the average change in the prices of food and services consumed by people in daily living.
With headline and food inflation skyrocketing to 31.7 per cent and 37.95 per cent, respectively, it showed that most Nigerians’ living cost and misery index had worsened.
A further Year-on-year analysis showed that headline inflation rose by 9.79 per cent compared to the 21.91 per cent recorded in February 2023.
Also, food inflation rose by a whopping 13.57 per cent compared to 24.45 per cent recorded in February 2023.
Similarly, from June 2023 to February 2024, under President Tinubu, Nigeria’s inflation has soared further by 8.91 per cent, caused by fuel subsidy removal and Naira floating at the foreign exchange market.
The untamed rise indicates that more citizens are finding it difficult to afford food, clothing, health care, energy, shelter, transport, Communications, education and other basic needs.
The inability of citizens to access basic needs is a problem in Urban and Rural sentiments in Nigeria.
However, though the 2023 misery index is yet to be released, the feelings on the streets of Nigeria showed that Nigerians are poorer.
Indeed, the current poverty rate in Nigeria exceeds the 133 million quoted by the NBS Multidimensional Poverty Index (MPI) for 2022.
The recent move by the Central Bank of Nigeria to raise the interest rate by 400 basis points to 22.75 per cent and previous monetary measures are yet to address the country’s inflation.
The statement made barely five days ago by the Minister of Finance, Olawale Edun, that Nigeria is constrained by revenue to fundcritical infrastructures and citizens’ welfare further paints a glimmer of hope.
Consequently, uncertainties have trailed the implementation of the 2024 N28.7 trillion national budget.
Speaking exclusively with Journalist on Monday, a renowned economist, former President, and Chairman of the Council of Chartered Institute of Bankers, Prof Segun Ajibola, said Nigeria’s heavy reliance on imports has further worsened its inflation.
He noted that the untamed inflation in the country worsened the misery index and that Nigerians were feeling the pain.
Prof Ajibola contended that Nigeria’s inflation is not induced by excess liquidity.
He said that controlling the cost of energy (by making refineries work) and other infrastructures, improving the value of the Naira, and tackling the problems of insecurity, especially those limiting food production, are the solutions.
“Inflation is a monster to tame. Whenever it debuts, it turns itself into an elephant in the room. It will take everything within the arsenals of such an economy to uproot it.
“The case of Nigeria is quite challenging because the economy is vulnerable to the outside world. Nigeria is one country that imports all sorts of consumer durables and non-durables.
“Basic raw materials, spares and accessories are imported. Likewise, necessities such as food, medicine, etc are imported.
“Accordingly, the domestic economy is susceptible to imported inflation. In the same vein, the recent devaluation in the value of the Naira has pushed up the landing cost of these items, thereby increasing the local prices of consumables and the cost of producing those manufactured locally. This cost-push inflation has been ravaging the domestic economy for a while now.
“Inflation worsens the misery index. Nobody gains from its impact. It leaves all the parties in its trails devastated. Nigerians are feeling the pain.