The three-month spike in inflation in 2023, with the recent figure reaching 22.04%, has brought pain, frustration and distress to the Nigerian people. It has also negatively impacted the country’s economy for the worse. Nigerians are overwhelmed and drowned by soaring food prices and the price of goods and services. It is now a commonly accepted reality that unless the prices of goods and services go down, there is no time to visit the market.
Prices of food, goods and services continue to soar without the purchasing power of Nigerians correspondingly increasing. The implication is that more Nigerians are likely to fall into poverty. The declining purchasing power reduces their ability to access basic necessities.
The National Bureau of Statistics’ March Inflation Report showed that inflation in the country rose by 6.12% from 15.92% in 2022. This is despite government efforts to counter the trend. Looking back, when Muhammadu Buhari took office in 2015, Nigeria’s inflation rate was at 9.01%. From that figure, it rose to 13.03% in 2015 and is now currently at 22.04% in 2023.
This means that prices for goods and services have risen by more than 160% over the eight years of Buhari’s led government.
During the ongoing World Bank/International Monetary Fund Spring Meeting taking place in Washington, the Governor of the Central Bank of Nigeria, Godwin Emefiele, said the CBN would not relent in efforts to fix inflation. He further stated that they would stabilize the country’s banking sector. Nigerians and some experts however have now run out of patience.
Emefiele had never hesitated in explaining to Nigerians what CBN is doing to tame inflation. This includes its recent move to increase the Monetary Policy Rate to 18%. However, the substance of the activities by the apex bank is not felt as the drums of the rising inflation beat Nigerians differently.
“We all know that the global economy still faces many challenges. We will not remove our eyes on monetary policy, which is to focus extensively on how to moderate inflation. Still, at the same time, ensure that banking system stability remains resilient and strong as it is right now”, he assured.
The former president and Chairman Council of the Chartered Institute of Bankers, CIBN, Prof Segun Ajibola, in an exclusive interview with DAILY POST, said that Nigeria must reduce or cut down the entire vulnerability on the global market. This is far from everyday rhetoric Monetary Policies and measures to tame the rising inflation.
He explained that Nigeria, especially the incoming government, must look inward. Nigeria has to be self-sufficient in food production, supply and energy production to undo the ugly trend of rising inflation.
According to him, Nigerians and Nigeria’s economy are at the receiving end.
He stressed that though inflation is inevitable, the country must not make it an incurable cankerworm.
“The former president of the US, Richard Nixon, said inflation is the worst enemy. It is a muster, a cankerworm, a visitor you avoid hosting. Once it visits you, it becomes your elephant or a master.
To understand more about how inflation works in the Nigerian economy, click here.
cc: Daily Post Ng
