Nigeria’s inflation rate reached 34.6% in November 2024, an increase from 33.88% recorded in October, according to the latest Consumer Price Index (CPI) report by the National Bureau of Statistics (NBS).
The NBS report revealed that the November inflation rate was 6.4 percentage points higher than the 28.2% recorded in the same month last year.
The month-on-month inflation rate for November also increased by 0.72%, further weakening the purchasing power of Nigerians already facing high costs of living.
Food inflation, a big component of the CPI, reached 39.93% on a year-on-year basis, up from 32.84% in November 2023.
On a monthly basis, food inflation edged up to 2.98% from 2.94% in October 2024. The steep rise was driven by high prices of essential items such as rice, yam flour, millet, dried fish, goat meat, and powdered milk.
The report attributed the high inflation to supply chain disruptions, rising transportation costs, and the lingering effects of policy reforms. For many households, this has translated into a severe cost-of-living crisis, with basic necessities increasingly out of reach.
Economic analysts trace much of the inflation surge to policy decisions taken by President Bola Tinubu’s administration.
Upon assuming office in May 2023, Tinubu removed the petrol subsidy and floated the naira, leading to a sharp increase in petrol prices—from under ₦200 per litre to over ₦1,100 in some regions—and a steep depreciation of the naira, which now trades at over ₦1,600 to the dollar.
While international financial institutions like the World Bank and IMF had long called for these reforms to stabilise Nigeria’s economy, the immediate fallout has been a spike in inflation and widespread hardship for citizens.
The removal of subsidies, coupled with volatile exchange rates, has made energy, transportation, and imported goods considerably more expensive.
With inflation continuing its upward growth, experts warn of far-reaching implications for the nation’s economy and social stability.
The cost of living has eroded disposable income and deepened poverty levels across Nigeria. Meanwhile, calls for the government to cushion the effects of its reforms through targeted social programmes and fiscal interventions have grown louder.
The inflation rate also brings a challenge to monetary authorities. The Central Bank of Nigeria (CBN) may face increasing pressure to tighten monetary policy, despite issues about the possible impact on borrowing costs and economic growth.
For millions of Nigerians, the hope is that policymakers will strike a balance between necessary reforms and measures that protect the most vulnerable populations.
