Millions of Nigerians will now struggle to afford three square meals and other necessities as the country’s headline inflation jumped to 26.72 per cent in September from 25.80 per cent in August 2023.
The National Bureau of Statistics September Consumer Price Index, which measures the rate of change in the price of goods and services, disclosed this on Monday.
The 26.72 per cent is the highest in the ninth month of rising inflation, significantly championed by food inflation, which stood at 30.64 per cent.
NBS blamed the soaring food inflation on the prices of oil and fat, bread and cereals, potatoes, Yam and other tubers, fish, fruit, Meat, vegetables and milk, cheese, and eggs.
A household food trader at Wuse Market, Aishat Mabe, confirmed that egg, beans, and Spaghetti increased by at least 20 per cent in the last three weeks.
“A crate of eggs of 2500 last week now sells for N2900, beans, Spaghetti and other food items had added at least a 20 per cent increment in price. The situation is worrisome”, she said.
With an already struggling Nigerian economy, the development indicates more misery for Africa’s largest economy, with over 200 million people.
Rising inflation, debt management and a forex crisis are headaches for the barely four-months-old administration of President Bola Ahmed Tinubu.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun and the new Governor of the Central Bank of Nigeria, Olayemi Cardoso, certainly have a lot of work to do on the country’s economy to halt an impending poverty crisis.
Speaking with DAILY POST, a popular economist and former President and Chairman of the Council of Chartered Institute of Bankers, Prof Segun Ajibola, said inflation remains a monster the Tinubu Government must tackle.
According to him, Nigeria’s inflation is cost-induced, and measures other than monetary policies should be considered as a solution.
“A holistic package of policies is more desirable to tackle cost overruns being triggered by non-monetary factors.
“Inflation is a hydra-headed problem and, in the words of former President Nixon of the US, the world’s No.1 enemy. It is one monster that is not easy to tame.
“The problem of inflation in Nigeria is simply cost-induced. I do not believe monetary measures alone can solve the problem.
“The cost of production has increased because of the rise in energy costs and the naira exchange rate, among others. Factories depend on imported raw materials and spares, and importers of consumables are doing so at current exchange rates.
“The farmers are paying more for farm inputs and transport costs. All of them are, as much as they can, pass the incremental costs to the consumers, which is fuelling inflation.
“Monetary management will be productive if a rise in aggregate demand induces inflation. Today, the real value of money in Nigerians’ hands has decreased. Likewise, the disposable income of the populace. Attempting contractionary monetary policy may not, therefore, address the current challenges”, he stated.
Also, Former president of the Chartered Institute of Bankers of Nigeria, Mazi Okechukwu Unegbu said inflation will only be tackled if the country looks inward by using its resources to tackle her problems, including reducing the cost of governance and corruption.
“There is no way the inflation in the country will be controlled unless we look inward to use our resources to take care of our problems. The cost of governance must be reduced drastically.
“Imagine buying an SUV for members of the House of Representatives in the face of our borrowing $1.5 billion to support the budget. It does not make sense.
“Another point is that the last administration stole so much money; we must go after them and recover what was stolen to help the economy. Once we are serious about fighting looters, I believe Nigeria’s economy will improve, and inflation will be tamed”, he said.
On his part, Dr Muda Yusuf, the Director at the Centre for the Promotion of Private Enterprise, said that CPPE high energy must be tackled to tame Nigeria’s rising inflation.
According to him, it will be difficult to tame inflation without fixing the power sector.
He called on Tinubu’s administration to declare an emergency in the country’s power and energy sectors.
“The effects of high energy costs are devastating. We need a state of emergency declaration in the energy and power sectors.
“It will be very difficult to tame inflation if we do not fix power, logistics and forex. Regrettably, there are no quick fixes in these areas. But it is important to prioritize these issues and drive accelerated progress with the right strategies”, he stated.
Similarly, Idakolo Gbolade, Chief Executive Officer of SD & D Capital Management, said the Government needs to initiate urgent policy measures to reduce the sufferings of Nigerians.
“The factors affecting inflationary trends are still subsisting, and the new management team of CBN are just shaping their policy direction.
“The government revenue is still low, the Federal Government still has budget deficits that need a $1.5 billion IMF loan to bridge, and the Naira is still experiencing a free fall.
“The Federal Government needs to implement its policies quickly from both monetary and fiscal sides and create confidence in the economy. The Government needs to increase revenue urgently and negotiate loan repayment.
“We need to increase the foreign reserves significantly to stabilize the Naira. The Government’s policies can stem inflation in the long run, but in the immediate, critical measures need to be put in place to save the economy and reduce the suffering of the people”, he said.
