PRESIDENT Bola Tinubu’s policies, which pushed Nigeria’s inflation rate up consecutively three times, have set a new inflation record for the nation in 20 years, checks by The ICIR have shown.
By this record, this is the first time the country’s inflation rate would increase consecutively for three months after a democratically elected president was sworn into office since 1999, according to findings from inflation rate data provided by the National Bureau of Statistics and the Central Bank of Nigeria from 2003 to August 2023.
This continued rise has been attributed to economic policies implemented by the President, which have impacted the cost of goods, foods and household items, transportation and other commodities.
The ICIR reported how Tinubu announced the immediate removal of subsidy on Premium Motor Spirit (PMS), otherwise known as petrol.
A few weeks later, the CBN announced the abolition of segmentation in the foreign exchange market, consequently floating the naira after several years of regulations.
Under the Tinubu administration, the inflation rate increased from 22.79 per cent in June to 24.08 per cent in July and 25.80 per cent in August, following the latest data by NBS.
Further findings, however, showed that the August inflation rate is the highest since August 2005, when Nigeria hit 28.2 per cent under the former President Olusegun Obasanjo, administration.
Inflation in previous administrations
The data surveyed in this report are for 2003 and 2023, as provided by the NBS and CBN.
In 2003, when Obasanjo was sworn into office for the second term on May 29, the inflation rate was 8.7 per cent. It grew to 14 per cent in June but dropped to 12.9 per cent and 12.4 per cent in July and August, respectively.
Furthermore, the late President Umaru Yar’Adua assumed office on May 29 2007, with an inflation rate of 4.6 per cent. The rate grew to 6.4 per cent but dropped to 4.8 per cent and 4.2 per cent in June and July, respectively.
Similarly, former President Goodluck Jonathan assumed office on May 29, 2011, with an inflation rate of 12.4 per cent. The rate dropped consecutively to 10.2 per cent, 9.4 per cent and 9.3 per cent in June, July and August, respectively.
Meanwhile, when former President Muhamadu Buhari assumed power on May 29, 2015, the inflation rate was 9 per cent. The rate grew and stood at 9.2 per cent in June and July and later increased to 9.3 per cent in August 2015.
Buhari was later re-elected in 2019 for a second time and sworn into office on May 29, 2019. At that time, the inflation rate was 11.4 per cent. It dropped to 11.22 per cent in June, 11.08 per cent in July and 11.02 per cent in August of the same year. The ICIR reported how the inflation rate grew 59 times under Buhari’s administration.
However, in the case of Tinubu, the inflation, which was 22.41 per cent when he assumed office on May 29 2023, had grown by 3.39 per cent to 25.80 in August 2023.
NBS stated in its report, “Due to the deregulation of the sector and the removal of the fuel subsidy, all the items that constitute energy are now determined by market forces, and hence their prices are termed volatiles. Therefore, core inflation is referred to as all items index less farm produces and energy.”