Nigeria’s inflation rate has hit a new high, climbing to 34.8% in December 2024, up from 34.6% recorded in November. This slight but significant increase continues a worrying trend that has characterized the nation’s economy in recent months, leaving many Nigerians grappling with higher living costs.
According to data released by the National Bureau of Statistics (NBS), the uptick in inflation is driven primarily by rising food prices, increased transportation costs, and persistent depreciation of the naira. Experts attribute the unrelenting surge to the removal of the fuel subsidy earlier in 2024, which triggered a domino effect across all sectors of the economy.
For the average Nigerian, the impact is evident. Market prices for staples like rice, beans, and yams have skyrocketed, placing immense pressure on household incomes. A bag of rice, which sold for ₦40,000 at the start of 2024, now costs over ₦60,000 in most markets across the country.
A trader at the Wuse Market in Abuja lamented, “Every day, customers come here, but when they see the prices, they walk away empty-handed. We are all feeling the heat.”
Transportation costs have also escalated due to the high price of fuel, further compounding the woes of ordinary citizens. This has affected not only commuters but also traders, who now spend more to transport goods to markets, leading to even higher prices for consumers.
Economic analysts warn that the rising inflation could worsen if proactive measures are not implemented. “What Nigeria needs now is a combination of fiscal discipline and economic reforms to stabilize the naira and address structural issues in food production and distribution,” said Dr. Ahmed Yusuf, an economist at the University of Lagos.
The federal government has acknowledged the challenges and assured Nigerians of its commitment to addressing the economic situation. In a recent address, President Bola Ahmed Tinubu stated, “We are working on comprehensive solutions to ease the burden on Nigerians and create a resilient economy. The road ahead may be tough, but together, we will overcome.”
Meanwhile, the Central Bank of Nigeria (CBN) is expected to review its monetary policies in response to the latest figures. Analysts predict that the apex bank may raise interest rates further to curb inflation, a move that could have mixed outcomes for businesses and consumers alike.
As Nigerians brace for tougher economic times, many are calling for immediate interventions, including subsidies on essential goods and investments in agriculture to boost local food production. The road ahead is uncertain, but the resilience of the Nigerian people will once again be tested in the face of these mounting challenges.
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