Nigeria Outperforms Other African Nations in Consumer Inflation, claims CBN


The Central Bank of Nigeria has said that Nigeria is still doing better than most African nations despite the high inflation witnessed across the country.

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Acting Governor of the CBN, Folashodun Shonubi said this at the 2023 Zenith Bank International Trade Seminar in Lagos on Tuesday, August 8.

Shonubi who was represented by the Deputy Governor, of Economic Policy at the CBN, Kingsley Obiorah, said Nigeria’s inflation rate stood at 22.8 per cent, adding that the International Monetary Fund expected the country to have a growth moderation of 3.2 per cent in 2023.

Also outlining the various factors that have caused inflation witnessed in the country, the acting CBN Governor said;

“Now, when you come down to Africa and neighbouring Ghana, At the last count inflation there is at 42.5 per cent. We have it at 31 per cent in Ethiopia and 36 per cent in Egypt.

“So, in our dear country, we are at 22.8 per cent. When you hear these figures, it tells you that we’re not doing as badly but all of this has also affected economic growth itself. Today, the IMF has revised growth downwards from 3.5% per cent to three per cent this year and 3 per cent next year.

“For Sub-Saharan Africa, they expect growth to moderate from 4.1 per cent last year to 3.5 per cent this year, but to take back again to just slightly over 4 v next year. In Nigeria they expect us to do 3.2 per cent this year.

“We know that the war between Russia and Ukraine is contributing a lot as the two countries are very important commodity exporters. Both of them account for 30 per cent of sunflower exports in the world. So, when such a region is at war, you know what will happen to food prices worldwide.

“We know too that there’s been a shift in demand from goods to services; services are usually more expensive. There’s also the disruption going on in China today with their zero COVID policy, power cuts as we know, and then the switch from coal to more renewable energy has also meant that power is not as valuable as it used to be.”

Shonubi also claimed that the high rate of investment in property services in China has also led to disruptions in the supply chain.

He said;

“We see too in China today some correction in the property market. A lot of Chinese don’t have quite the kind of investment vehicles that say the average American has.

“A lot of them have put their savings into property. But that has meant an oversupply of property in China today. There are 65 million empty apartments in China.

“That’s enough to take the entire population of France. So that correction is also leading to supply chain disruptions.
“In the decade between 2001 and 2011, the non-oil exports to GDP ratio for Nigeria was 0.8 per cent. And you can imagine that in the next decade, so, from 2012 to 2022, we were still at 1.2 per cent, showing an increment of 0.4 per cent over 20 years.

”We need to be growing much faster. Countries that are way smaller than us are doing much better.”

Also explaining why Nigeria has to do better in exports, Shonubi said;

“The Netherlands has a land size of 34,000 square kilometres. So, if you add water, you go to 42,000. It might interest you to know that non-oil exports from the Netherlands is 29% of their GDP. Most times they do $108 billion in non-oil exports.

“Now keep in mind the Netherlands is smaller than Niger State, actually the size of Niger State. I’ll give you another example. Ireland is a country that sits on just about 70,000 square kilometres, and they routinely do non-oil exports of $170 billion so we can do better.”

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Gbenga Samson
Gbenga Samson
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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