A report by the Central Bank of Nigeria (CBN) has blamed Nigeria’s ongoing inflation crisis on insecurity and infrastructural deficits.
The report, which is part of Nigeria’s periodic economic update from the apex bank, was released in the Q4 2024 economic report.
“Inflation remained elevated in Q4 2024, as both food and non-food components of the CPI basket increased,” the report noted.
“Headline inflation rose to 34.80 per cent year-on-year, up from 32.70 per cent in the preceding quarter, driven by higher energy costs and exchange rate pass-through. Other contributing factors included hoarding, insecurity, and infrastructural challenges,” the report stated.
The report further highlighted: “Inflation remained broadly distributed across the components of the CPI basket during the review period, with analytical evidence indicating an increase in its pervasiveness.
“Specifically, 74.62 per cent of items in the CPI basket exceeded the historical average of 14.60 per cent (2010-2023), compared to 70.14 per cent in the preceding quarter.”
However, the report stated that Nigeria’s inflation is expected to moderate starting in 2025.
Nigeria’s headline inflation rate declined to 24.48 per cent in January, according to the latest data from the National Bureau of Statistics (NBS).
The bureau had also reported that food inflation stood at 26.08 per cent year-on-year.
Speaking at a press briefing in Abuja, the Statistician-General of the Federation and CEO of NBS, Adeyemi Adeniran, attributed the decline to the recent rebasing of Nigeria’s inflation basket.
This move was aimed at aligning the country’s inflation measurement with global standards.
“The last time Nigeria rebased its inflation calculation was in 2009, meaning that prices of goods from that period were still being used as a reference,” Adeniran explained.
He added, “This update allows for methodological improvements that enhance accuracy and ensure consistency with international best practices.”
Although the Nigerian government has reported a drop in inflation figures, Nigerians continue to lament the rising cost of living.
Nigerians have also lamented insecurity including attacks on farmers by criminal herders.
