The year 2022 witnessed a significant inflation rate of 18.85 percent, which was higher compared to the previous year’s rate of 15.63 percent.
Unfortunately, three months into 2023, the inflation rate reached a worrying 22.04 percent, marking the highest level since 2001.
Inflation’s Impact on Nigerian States
A recent analysis conducted by TechEconomy, based on the National Bureau of Statistics (NBS) Consumer Price Index (CPI) and Inflation Report for March 2023, reveals that several states in Nigeria are grappling with double-digit inflation primarily driven by surges in food prices, non-alcoholic beverages, housing, water, electricity, gas, and other fuels.
Food Inflation Statistics
According to the report, the food inflation rate in March 2023 stood at 24.45 percent on a year-on-year basis, representing a significant increase of 7.25 percent compared to March 2022’s rate of 17.20 percent.
States with the Highest Inflation Rates
NBS data identifies Ondo, Bayelsa, and Lagos as the states with the highest inflation rates in March 2023. Ondo leads with an all-items inflation rate of 25.38 percent, followed by Bayelsa at 24.80 percent and Lagos at 24.66 percent.
Regarding month-to-month changes, Bayelsa experiences the highest all-items inflation rate at 2.58 percent, followed by Nasarawa at 2.54 percent and Lagos at 2.41 percent.
In terms of food inflation, Kwara, Ondo, and Lagos have the highest year-on-year rates, with Kwara leading at 28.48 percent, followed closely by Ondo at 28.22 percent and Lagos at 27.92 percent.
Month-on-month, Bayelsa faces the highest food inflation rate at 3.11 percent, followed by Rivers at 3.00 percent, and Ondo at 2.98 percent.
Lowest Inflation Rates
Conversely, Borno records the slowest rise in headline year-on-year inflation at 10.18 percent, with Cross River and Sokoto following closely at 19.24 percent and 20.01 percent, respectively.
For month-on-month changes, Anambra leads with the lowest inflation rate at 1.03 percent, followed by Ebonyi at 1.14 percent, and Zamfara at 1.27 percent.
While, Sokoto records the slowest rise in food inflation on a year-on-year basis at 18.99 percent, trailed by Zamfara at 20.57 percent and Plateau at 21.38 percent.
Controlling Inflation
Encouraging indigenous production of goods and services especially in the agricultural sector will help to reduce prices and boost national food security. However, insecurity must be first tackled because farmers have stopped going to farms. When thry arent going to farms it affects the entire agricultural sector.
The Federal Government can initiate plans that will reduce our dependence on imported goods. Many Nigerians are used to imported products; there is the need to encourage indigenous producers to upgrade the quality of their products to meet international standards.
There are other control measures such as control, monetary policy, etc. Overall, the government should focus on initiatives that will speed up production.
Conclusion
The increasing inflation rates across Nigerian states are concerning, particularly due to the impact on the prices of essential goods and services.
The TechEconomy analysis highlights the urgency for effective measures to address the rising inflation and stabilize the economy, focusing on key sectors such as food and non-alcoholic beverages, housing, and utilities.
