Daily Management Review

Rising inflation triggers massive economic crisis in Nigeria


The biggest economy in Africa, Nigeria, is going through one of its worst crises ever.

The nation's inflation rate hit 29.9% in January, the highest since 1996, according to the National Bureau of Statistics. Inflation increased by 0.88% on an annualized basis and 0.98% on a monthly basis.

Additionally, the value of Nigeria's national currency has already decreased by 70% since May 2023, when the new President Bola Tinubu assumed office, according to CNBC. The nation's other issues include falling oil production, significant unemployment, power outages, and unprecedented amounts of public debt.

The Nigerian webpage Nairametrics states that the food industry has the greatest rate of inflation. It increased by 11.1 percent yoy in January 2024, to 35.41 percent. The most expensive foods were bread and cereal products, potatoes, yams, and other tuber crops; vegetable oils and fats; fish; meat; fruits; coffee; tea; and chocolate.

President Tinubu said on February 20th that steps will be taken to raise up to $10 billion in order to improve liquidity in the foreign exchange market and stabilize the exchange rate. The naira fell because an earlier presidential decree had harmonized various exchange rates and established a single market rate.

source: cnbc.com