EconomyNewsNigeriaFood and Energy Costs Soars Nigeria’s Inflation to 33.2% New High

Nigeria’s inflation rate surged to a new high of 33.2 per cent in March 2024, according to data released by the National Bureau of Statistics, NBS, on Monday.

This represents a 1.5 percentage point increase from the 31.7 per cent recorded in February 2024.

The rise in inflation is being attributed primarily to increasing food and beverage prices, coupled with rising energy and housing costs.

Food inflation, a key driver of overall inflation in Nigeria, reached 40.01 per cent year-on-year in March, up from 37.92 per cent in February.

In March 2024, food inflation on a year-on-year basis was highest in Kogi with 48.46 per cent, Kwara with 46.18 per cent, and Akwa Ibom with 45.18 per cent. However, when compared on a month-on-month basis to February 2024, food inflation in March 2024 was highest in Abia at 5.17 per cent, Cross River at 5.14 per cent and Bayelsa at 4.75 per cent.

On the other hand, states with the slowest rise in food inflation on a year-on-year basis are Nasarawa (33.76 per cent), Borno (34.28 per cent), and Bauchi (34.38 per cent). Also, Borno (1.59 per cent), Yobe (2.08 per cent) and Adamawa (2.12 per cent) recorded the slowest rise in food inflation on a month-on-month basis.

The NBS report also highlights a significant year-on-year increase in inflation compared to March 2023.

The headline inflation rate in March 2023 was 22.04 per cent, which means inflation has accelerated by over 11 percentage points in the last year.

While the month-on-month increase in inflation slowed down slightly in March compared to February, the overall trend remains concerning.

Nigerians are facing a tough economic climate. This rapid inflation is putting a strain on households, making it difficult to afford necessities.

Economists warn that if not addressed, this high inflation rate could erode purchasing power and dampen economic growth in Nigeria.