Politics
Alarming Trends: Nigeria Witnesses 11th Inflation-Increase In 2023, Reaching 6.68% Rise
As the festive season unfolds, ominous signs suggest that Nigerians may face a somber yuletide, marked by the country’s inflation surging to 28.20% in November—the highest since August 2005….CONTINUE READING....KINDLY READ THE FULL STORY HERE▶

According to the National Bureau of Statistics, this marks the eleventh occasion in 2023 where Nigeria’s inflation rate has seen an increase. From January to November this year, the nation’s inflation rate has risen by 6.68%, the fastest pace since the 2016 recession.
Prices for essential goods and services such as food items, accommodation, clothing, electricity, and education fees have sharply risen. A detailed examination reveals that the primary driver of the country’s escalating headline inflation rate is food inflation, which spiked to 32.84% in October.
For instance, the cost of a 50kg bag of rice has surged from N38,000 to N55,000 compared to the previous December, 25 liters of vegetable oil now sell for N42,000 from N32,000, and the price of a chicken (layer) has jumped from N3,000 to N6,000 in the past year.
Beyond the realm of food, transportation costs and other services have doubled nationwide. This is largely attributed to the adverse effects of fuel subsidy removal and foreign exchange fluctuations.
President Bola Ahmed Tinubu’s policies of fuel subsidy removal and Naira floating in June led to an increase in fuel prices to over N617 per liter and a surge in the forex rate to over N800/$1. Despite the purported gains of these policies, the negative impact on Nigerians persists.
Out of the 15 million households targeted for the N25,000 cash transfer from the $400 million World Bank loan to ease the fuel subsidy removal, only 1.5 million have received it. The ongoing scarcity of the Naira nationwide compounds the challenges, with individuals and point-of-sale operators expressing concerns about the shortage of banknotes.
Reflecting on the situation, Prof Godwin Oyedokun from the Lead City University in Ibadan emphasized that the soaring inflation rate is likely to significantly affect Nigerians during the festive season. He highlighted the potential constraints on purchasing power, increased financial strain, and challenges faced by small businesses.
Other experts, including Mr. Idakolo Gbolade and Mazi Okechukwu Unegbu, anticipate a continued rise in inflation, pointing to pressures on the Naira against the US Dollar and the inadequacy of current economic policies. Dr. Uju Ogunbunka underscored the dependence on imported goods as a factor contributing to inflation, while Prof. Segun Ajibola expressed skepticism about the effectiveness of monetary measures in curbing the inflationary pressure.
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