In Nigeria, inflation reaches 15%

Africa’s largest economy sees inflation hitting 15.75 percent in December, its highest in 33 months, according to figures from the National Bureau of Statistics (NBS). Nigeria, which had closed its borders from August 2019 to December 2020 (the import of rice and certain foodstuffs remaining prohibited) to stimulate its process of food self-sufficiency, is moving further away from the convergence criteria for the adoption of Eco, the single currency of ECOWAS.

This Olympic inflation, which results in part from the instability of the national currency, the Naira, supported by massive dips in foreign exchange reserves, is felt heavily in the basket of the housewife. Thus, the NBS estimates that food inflation reached 19.56% in December 2020 against 18.30% a month earlier. “This increase in the food index was caused by the increase in the prices of bread and cereals, potatoes, yams and other tubers, meat, fruits, vegetables, fish and vegetables. oils and fats, ”reports the statistics agency.

Likewise, core inflation, which excludes changes in food and energy prices, stood at 11.37% in December 2020, up 0.32% from the 11. 05% recorded in November. The NBS estimated that the highest increases during the month were recorded in the prices of air passenger transport, medical services, hospital services, footwear, road passenger transport, miscellaneous services related to hairdressers and personal care establishments.

Africa’s largest economy, Nigeria has 87 million poor people. A paradox ? According to observers, this inflation is caused by various factors including, among others, the Covid-19 pandemic which has destroyed the macroeconomic parameters of the country, the depreciation of the national currency and the closure of borders with neighboring countries. The Lagos Chamber of Commerce and Industry (LCCI) and the Association of Industrialists of Nigeria (MAN) noted in 2020 that the border closure had pushed up the prices of inputs and finished products in Nigeria. “For the year 2021, we expect headline inflation to remain high as the combination of food supply shocks, exchange rate policies (FX), higher energy costs, currency illiquidity, “Increased insecurity in major food producing states will continue to put pressure on consumer prices in the domestic market,” noted Muda Yusuf, LCCI Director General, as quoted by ICIRI News.


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