Nigeria’s inflation rate at almost 21%, food inflation 23%

Nigerians are indeed witnessing the most trying times of the economic degradation and deterioration. Things are not getting better for all Nigerians especially the poor stricken ones who can barely afford a daily meal.

The numbers released by the country’s National Bureau of Statistics (NBS) are not good. According to NBS, food inflation soared to 23%, while the country’s inflation rate stands at 20.52% in August of third quarter..

The country’s National Bureau of Statistics “NBS on Thursday, 15th September 2022 released Nigeria’s Consumer Price Index report for the month of August of 2022, putting Nigeria’s inflation rate at a near 17-year high of 20.52%. A further breakdown of the report showed that food inflation rate also quickened to its highest level in almost 17 years to stand at 23.12%, while core inflation rose to 17.2% in the same month. An interesting component of the nation’s index is the food index, which accounts for more than 50% of the basket of items tracked by the NBS.”

The price of foodstuffs are soaring especially wheat due its high demand and its shortage in the market. Nigeria is a big consumer of wheat and also a major importer of wheat. But importation from Ukraine has been interrupted by the war between Ukraine and Russia.

• “Nigeria is a huge consumer of wheat products, with its local production only accounting for just 1% of the 5 to 6 million metric tons consumed annually, while we rely on importation to meet local demand. Hence, the enormous demand-supply gap is bridged with over $2 billion spent annually on the importation of wheat, piling more pressure on the nation’s import bill.”

Moreover, Nigeria is in dire financial strait and barely has the liquidity to pay her bills especially foreign debts. Therefore, the foreign exchanges needed for importation of foods are not available.