Nigeria’s Inflation Climbs to 29.90% in January 2024, Adds Pressure on Central Bank
By Matthew Eloyi
Nigeria’s inflation rate surged to 29.90 per cent in January 2024 from the previous month’s 28.92 per cent, as reported by the National Bureau of Statistics (NBS) in its latest Consumer Price Index. The 0.98 per cent increase underscores the persistent challenge of inflation in the country.
The NBS data, released on Thursday, revealed the concerning trend, adding more urgency for the Central Bank’s monetary policy committee to consider significant interest rate adjustments at its upcoming meeting scheduled for February 26-27, marking its first session in seven months.
According to the report, “In January 2024, the headline inflation rate increased to 29.90 per cent relative to the December 2023 headline inflation rate, which was 28.92 per cent. Looking at the movement, the January 2024 headline inflation rate showed an increase of 0.98 per cent points when compared to the December 2023 headline inflation rate. Similarly, on a year-on-year basis, the headline inflation rate was 8.08 per cent points higher compared to the rate recorded in January 2023.”
The data indicates a concerning acceleration in inflationary pressures, with food inflation being a significant contributor. The ongoing conflict between Russia and Ukraine has further exacerbated global food prices, impacting Nigeria’s domestic food market.
In response to the rising cost of living, protests have erupted in various parts of the country, including Niger, Kano, Kogi, and Ondo states, with citizens demanding tangible solutions to address the economic crisis.
Moreover, traditional rulers in the northern region, along with the Nigerian Bar Association, have voiced their grievances over the hardship inflicted by the removal of fuel subsidies, which has led to increased transportation costs and food inflation.
The escalating inflation rate highlights the urgent need for proactive measures from policymakers to mitigate the economic challenges faced by Nigerians.
