Nigeria Grapples with Soaring Inflation as Prices Reach 28-Year High.
Nigerians are facing a worsening cost-of-living crisis as inflation reached a staggering 33.95% in May, according to data released by the National Bureau of Statistics (NBS) on Saturday. This marks the 18th consecutive month of rising inflation and the highest rate in 28 years, fueling public discontent with President Bola Tinubu’s economic reforms.
The latest inflation figures paint a grim picture for Nigerians, many of whom are already struggling to make ends meet. The relentless rise in prices, which began in November 2023, has been attributed in part to President Tinubu’s economic reforms. These reforms include slashing subsidies on petrol and electricity, as well as devaluing the Nigerian Naira currency twice within a year.
Critics, particularly labor unions who recently suspended a strike demanding a higher minimum wage, argue that these reforms disproportionately burden the poor. They point to the fact that millions of Nigerians are now grappling with the worst cost-of-living crisis in decades.
The NBS data reveals that food and non-alcoholic beverages continue to be the primary drivers of inflation. Food inflation, which makes up a significant portion of Nigeria’s inflation basket, jumped to 40.66% in May, compared to 40.53% the previous month.
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Analysts suggest that the combination of high food prices and a weakened Naira is the main culprit behind Nigeria’s inflationary woes. The Central Bank of Nigeria (CBN) has responded by raising interest rates for the third time in 2024, aiming to curb inflation. Governor Olayemi Cardoso has signaled that interest rates will remain high for as long as necessary to bring inflation under control.
However, the effectiveness of these measures remains to be seen. With public anger mounting and economic hardship deepening, the coming months will be crucial for President Tinubu’s administration. The government must find a way to address the root causes of inflation while also alleviating the suffering of ordinary Nigerians. Otherwise, the social and economic consequences could be dire.
