NIGERIA’S untamed poor economy, largely spurred by exchange rate problems, unsustainable subsidy payments, increased energy price, and the recent floods, pushed up inflation figures in October.
According to figures that the National Bureau of Statistics (NBS) released on Tuesday, November 15, inflation figures rose in October on year-on-year basis to 21.09 per cent.
That was 5.09 per cent points higher than the 15.99 per cent rate recorded in October 2021, the NBS disclosed.
On a month-on-month basis, the headline inflation rate for October 2022 was 1.24 per cent, 0.11 per cent lower than the 1.36 per cent rate recorded in September 2022.
The general price level in October 2022 for the headline inflation rate (month-on-month basis) declined by 0.11 per cent.
The percentage change in the average consumer price index (CPI) for the 12 months ending October 2022 over the average of the CPI for the previous 12 months period was 17.86 per cent, showing a 0.91 per cent increase, compared to the 16.96 per cent recorded in October 2021.
Economic watchers say the Federal government needs to take urgent measures to tame the double digit inflationary pressure on the economy.
The former Director-General of the Lagos Chamber of Commerce and Industry (LCCI) and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the government may need to lower tariffs on some staple food imports to lessen the inflation effects on Nigerians.
“For Nigerians to be able to, at least, buy food this December, the government must lessen tariff on some staple food imports. If you look at the price in the markets, you could see inflation is doubling, and with Nigeria’s currency problem, it could get worse,” Yusuf said.
A financial analyst, Robert Omotunde, told The ICIR that the government needed to fix the exchange rate problems, which he said were affecting Nigeria’s food imports.
“Exchange rate is tied to inflation and tied to an import dependent nation like Nigeria. If we allow market principles to operate, there will be no need for speculation. What we have done is that we have restricted the market, and the players in that market are looking at an alternative market,” Omotunde said.
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.