Nigeria’s inflation peaks under Tinubu for the second time in 18 years

NIGERIA’S inflation rate for November 2023 has jumped to 28.2 per cent, making it the highest inflation rate recorded in almost two decades since August 2005.

Findings by The ICIR showed that this is the second time Nigeria would hit an inflation rate of 28.2 per cent. The first was August 2005. 

The latest data from the National Bureau of Statistics (NBS) showed that the inflation rate rose by 0.87 per cent from 27.33 per cent in October 2023

The November inflation rate is the 11 consecutive increase reported this year as millions of Nigerians battle with the high cost of household products following several economic reforms implemented by President Bola Tinubu since he assumed office on May 29. 

The NBS said that on a year-on-year basis, the headline inflation rate was 6.73 per cent points higher compared to the rate recorded in November 2022, which was 21.47 per cent.           

The food inflation rate, a major determinant of the inflation rate, rose to 32.84 per cent. NBS said that the rise in food inflation on a year-on-year basis was caused by increased prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables and coffee, tea and cocoa. 

Since removing the fuel subsidy in May, Nigerians have struggled to adjust to the economic hardship of increasing market prices. Alternatively, the President has rolled out several palliative schemes to ease the economy, but the rising inflation rate shows that there has been very little impact. 



    While appearing before the Joint Committee on Banking, Insurance, and Other Financial Institutions on Thursday, December 14, the Central Bank of Nigeria (CBN) governor, Yemi Cardoso, said the inflation rate was expected to decline by 2024.

    He said, “The outlook for the domestic economy remains positive and is expected to maintain the positive trajectory for 2024. Inflation pressures may persist in the short-term but are expected to decline in 2024.”

    Also, while presenting the 2024 budget, Tinubu said that the budget was targeted at reducing the inflation rate to 21.4 per cent. 

    Meanwhile, KPMG Nigeria predicts that with the persistent inflationary pressure, Nigeria’s inflation rate might hit 30 per cent by December 2023. 

    Kehinde Ogunyale tells stories by using data to hold power into account. You can send him a mail at [email protected] or Twitter: Prof_KennyJames

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