Economists attribute Nigeria’s 28-year high inflation rate of 33.69% to collapse of security infrastructure


Nigeria’s consumer price inflation (CPI) surged to a 28-year high of 33.69% in April 2024, marking the sixteenth consecutive month of acceleration. The increase, up from 33.20% in the previous month, is attributed to various factors including the depreciation of the naira, removal of fuel subsidies, and electricity tariff hikes, according to the National Bureau of Statistics (NBS).

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Food Inflation Drives CPI Surge

Food inflation, a significant driver of the headline index, reached 40.53% year-on-year in April. This surge is fueled by rising prices of essential food items such as millet flour, garri, bread, and various meats and beverages. However, food inflation moderated to 2.5% in April, down from 3.62% in March, due to decreases in the rate of price increases for certain items.

Core Inflation and Regional Variances

Core inflation, excluding volatile agricultural produce and energy prices, stood at 26.84% year-on-year in April, up from 19.96% in the same period last year. Across states, headline inflation was highest in Kogi, Bauchi, and Oyo, while Borno, Benue, and Taraba recorded slower year-on-year rises.

Monetary Policy Outlook

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is set to meet to discuss measures to combat inflation. Previous rate hikes by the CBN appear to be taking effect, with a slower year-on-year increase in headline indicators in recent months. It is anticipated that the CBN will cautiously proceed with rate hikes at the next MPC meeting, potentially increasing rates by 75 to 100 basis points.

Analyst’s Perspective

Analysts attribute the persistent rise in food prices to ongoing security concerns in food-growing regions, logistical challenges, and infrastructure deficits.

The pass-through effect of currency depreciation on domestic food prices also contributes significantly to soaring food prices, putting pressure on consumers’ purchasing power.

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Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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