The rising inflation crisis in Nigeria, as with many other countries around the world, has worsened as a data tracker in the country, Nairalytics, revealed that the country’s inflation rate surged to 20.52% in August 2022. The latest figure is the highest rate in 17years.
Nigeria’s inflation rate, which rose to 19.64% in July 2022, reached a new high in August, leading to a massive drop in the purchasing power of Nigerians. For context, the last time Nigeria suffered a 19% average inflation was in 2005 under the leadership of President Olusegun Obasanjo. At the time, Nigeria’s inflation rate spiked from a single digit in January 2005 to a whooping 28.2% by August of the same year.
According to the data released by Nairalytics, food inflation rose to 23.12% in August 2022. The spike in food prices is as a result of increase in prices of bread and cereals, food products (including potatoes, yam and other tuber), fish, meat, oil and fat.
- There were also hikes in prices of gas, liquid fuel, solid fuel.
- It is important to note that the impact of Nigeria’s high inflation rate is severe due to the fact that the major drivers of the country’s inflation are basic items Nigerians spend money on.
Recommendation by Experts
Financial experts in the country claim that to tackle Nigeria’s high inflation rates, the country needs to improve the agricultural sector to obtain more yields from farm produce, cut the cost of operation for farmers and support the manufacturing sector, while improving exportation.