LunagisthubNigeria’s Inflation Crisis: A Growing Concern Under the Tinubu Government
A recent report by the Central Bank of Nigeria (CBN) has shed light on the country’s worsening inflation crisis, which has been exacerbated by insecurity and infrastructural deficits. The report, released in the Q4 2024 economic report, reveals that inflation remained elevated in the fourth quarter of 2024, with both food and non-food components of the CPI basket increasing .
The headline inflation rate rose to 34.80% year-on-year, up from 32.70% in the preceding quarter, driven by higher energy costs and exchange rate pass-through. This surge in inflation has resulted in a significant increase in the cost of living, with Nigerians struggling to afford basic necessities.
The CBN’s report attributes the inflation crisis to insecurity and infrastructural deficits, which have disrupted economic activity and driven up costs. The ongoing insecurity challenges in the country have led to increased costs of production, transportation, and storage, ultimately resulting in higher prices for consumers.
To address the inflation crisis, the Tinubu government must prioritize investments in infrastructure and security. This includes upgrading the country’s transportation networks, improving energy supply, and enhancing security measures to protect businesses and individuals.
In addition, the government should consider implementing policies to support low-income households, such as subsidies for essential goods and services, and programs to promote economic empowerment.
Ultimately, the inflation crisis in Nigeria requires a comprehensive and multifaceted approach to address its root causes and mitigate its effects on the most vulnerable members of society.
Key Takeaways:
Inflation Rate: 34.80% year-on-year, up from 32.70% in the preceding quarter
Causes:Insecurity and infrastructural deficits
Effects:Increased cost of living, reduced purchasing power
Solutions:Investments in infrastructure and security, policies to support low-income households.
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