The annual inflation rate in Nigeria increased to 17.9 per cent in September, the highest in more than 11 years, from 15.5 per cent in February 2016, according to the National Bureau of Statistics (NBS).
It has maintained a steady rise in the past eight months from February, which is an indication of high profile economic crisis in the most populated country in Africa.
In August, it rose to 17.4 per cent, reflecting higher prices in consumable items, including electricity, kerosene, transport and food, with a separate index which rose to 16.6 per cent from 16.4 per cent in August, said the NBS at the weekend.
But The NBS has revised its forecast for year-end inflation, estimating the index will end at between 17.1 per cent and 18 per cent, up from 9 per cent at the start of the year.
Nigeria, Africa’s biggest energy producer, has seen its economy slide into recession for the first time in 25 years, largely due to the impact of low oil prices.
Crude oil sales account for 70 per cent of government revenue.
These problems have been exacerbated by a spate of militant attacks this year that have cut oil output causing dollar shortage on the currency markets that has frustrated businesses struggling to import raw materials for production.
On Friday the central bank auctioned two-month dollar forwards to clear a backlog of demands from airlines, manufacturers and other companies, traders said.
Minister of finance, Kemi Adeosun, has been having a running battle with the CBN Governor, Godwin Emefiele that both inflation and interest rates should be pruned down for the country to witness early recovery from recession.
However, the consensus among policy makers is that foreign and local loans should be sourced with which to fund the 2016 budget, having about $2.2 billion deficit.
They argue that if Nigeria could solve current scarcity of dollars hitting the economy, other factors, including high inflation and interest rates would ease off,
But apart from AfDB, which had agreed to help the country with $1 billon, no other international institutions has indicated zeal to do likewise without stringent conditionalities, that could worsen the hardship in the country.
By Emma Eke….
RipplesNigeria …without borders, without fears
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
Students suffer as contractors abandon Kano school projects after receiving over N70m
In 2019, to improve the condition of public schools in Kano State, the Federal Government disbursed millions of naira to...
SPECIAL REPORT: World Bank road projects go bad in Enugu, as state govt fails to fulfill promise
Counterpart funded road projects between the world Bank and Enugu State government have started to fail, as the state government...
INVESTIGATION: How N70m road construction created more hardship for Sokoto residents
“To address recurrent accidents on Gagi to Gidan Dilo road and Fakon Idi roads, in Sokoto State, the Federal Government,...
INVESTIGATION: Inside Kwara school where students are used as labour on teachers’ private farms
In this report, SHEREEFDEEN AHMAD uncovered how young students in Kwara State, Nigeria, are being used for labour work on...
INVESTIGATION: How Kano SUBEB awarded contracts to inactive contractors, non-existent schools
In an effort to address issues hindering quality education, the Kano State Government in 2020 awarded N88,406,667.10 for the construction...