THE latest data from the National Bureau of Statistics (NBS) has revealed that Nigeria’s headline inflation rate increased to 33.95 per cent as of May 2024.
With this new rate, The ICIR findings, according to data available from 2003, showed President Bola Tinubu became the first president to increase the inflation rate consistently, every month, in his first year as president of the country.
Tinubu assumed office in May 2023 when the inflation rate was at 22.41 per cent. In one year, the president increased the inflation rate by 11.54 per cent.
The inflationary spike, analysts said could be connected to several policies enacted by the president within his first year in office. Some of these include the removal of subsidies, naira devaluation in the currency market, and increment of tax and levies among others.
“With his announcement of “no more subsidy” on May 29, 2023, the rollout of so-called palliatives was bungled, discontent and inflation accelerated and the government panicked and reversed subsidies in secret. Today reports indicate the fuel subsidies are back. Good policy bad implementation. While not implement subsidy removal in phases, not to suffocate Nigerians with high energy prices which is the major driver of inflation,” a development economist, Kalu Aja said.
Not long ago, the World Bank told the Central Bank of Nigeria (CBN) that a continuous interest rate hike poses a risk to Nigeria’s economic growth and is not enough to curb rising inflation.
The global bank stressed that the CBN increasing rate measures might not address the inflation issue which has significantly challenged the country’s economy.
While giving further insight, NBS said that the headline inflation rate for May 2024 increased by 0.26 per cent against the 33.69 per cent reported in April 2024. The report stated that the inflation rate was driven majorly by Food & Non-Alcoholic Beverages and Housing, Water, Electricity, Gas, and other Fuel.
In May 2024, the All-Items inflation rate on a Year-on-Year basis was highest in Bauchi (42.30 per cent), Kogi (39.38 per cent), and Oyo (37.73 per cent), while Borno (25.97 per cent), Benue (27.74 per cent) and Delta (28.67 per cent) recorded the slowest rise in headline inflation on a year-on-year basis.
| Index | May 2023 | May 2024 |
| Inflation rate | 22.41% | 33.95% |
| Urban inflation | 23.74% | 36.34% |
| Rural inflation | 21.19% | 31.82% |
| Food inflation | 24.82% | 40.66% |
| Core inflation | 19.83% | 27.04% |
Table showing inflation figures within a year under President Tinubu
Food Inflation
The Food inflation rate in May 2024 was 40.66 per cent which is 15.84 per cent higher compared to the rate recorded in May 2023 (24.82 per cent).
The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items: Semovita, Oatflake, Yam flour prepackage, Garri, Bean, etc (which are under Bread and Cereals Class), Irish Potatoes, Yam, Water Yam, etc (under Potatoes, Yam and other Tubers Class), Palm Oil, Vegetable Oil, etc (under Oil and fat), Stockfish, Mudfish, Crayfish, etc (under Fish class), Beef Head, Chicken-live, Pork Head, Bush Meat, etc (under Meat class).
In May 2024, food inflation on a year-on-year basis was highest in Kogi (46.32 per cent), Ekiti (44.94 per cent), Kwara (44.66 per cent), while Adamawa (31.72 per cent), Bauchi (34.35 per cent) and Borno (34.74 per cent), recorded the slowest rise in food inflation on a year-on-year basis.
Kehinde Ogunyale tells stories by using data to hold power into account. You can send him a mail at jameskennyogunyale@gmail or Twitter: Prof_KennyJames | LinkedIn: Kehinde Ogunyale
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.