The National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation rate climbed to 34.6% in November 2024, up from 33.8% in October.
This increase reflects the relentless rise in the cost of goods and services, marking another month of worsening economic conditions under President Bola Ahmed Tinubu’s administration.
On a year-on-year basis, inflation was 6.4 percentage points higher than the 28.2% recorded in November 2023. While the month-on-month inflation rate of 2.638% in November showed a marginal slowdown compared to 2.640% in October, the cost of living continues to skyrocket, leaving millions of Nigerians struggling to make ends meet.
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Food inflation, in particular, remains a major driver of the overall increase. At 39.93% in November, food prices have surged by 7 percentage points compared to the same period last year, disproportionately affecting low-income households who spend a significant portion of their income on food.
Staples like yam, maize, and rice—critical components of the Nigerian diet—have become unaffordable for millions. The average annual food inflation rate for the 12 months ending November 2024 was 38.67%, up from 27.09% in 2023, highlighting the worsening trend.
Regionally, states like Bauchi (46.21%), Kebbi (42.41%), and Anambra (40.48%) recorded the highest food inflation rates, indicating severe price volatility in northern and southeastern Nigeria. Meanwhile, states such as Delta (26.47%), Benue (28.98%), and Katsina (29.57%) reported the lowest rates but remained well above sustainable levels.
Impact on Nigerians
The rising inflation has placed unbearable pressure on ordinary Nigerians, eroding their purchasing power and pushing millions into deeper financial distress. For many, basic necessities like food, transportation, and healthcare have become luxuries. The situation has sparked widespread discontent, with citizens lamenting the inability of the government to address the root causes of the crisis.
The World Bank has painted an even bleaker picture of Nigeria’s economic future. In its 2023 forecast, the institution warned that inflation, combined with stagnant economic growth, could push an additional 7.1 million Nigerians into extreme poverty in 2025. This would bring the total number of Nigerians living on less than $2.15 a day to about 100 million. A new assessment has found that a staggering 33 million people will face acute food insecurity in Nigeria in 2025, with the number of people facing emergency levels of need projected to almost double.
Tinubu’s Fiscal Policies Under Scrutiny
The continuous rise in inflation calls into question the effectiveness of Tinubu’s fiscal policies, which were expected to stabilize the economy following the controversial fuel subsidy removal mid-last year. Tinubu’s administration had touted the subsidy removal as a necessary step to free up funds for critical infrastructure and social investment programs.
However, the resulting economic shocks, compounded by the depreciation of the naira and structural inefficiencies, have left the masses worse off.
Measures by the government to shore up the economy, including implementing a floating exchange rate and attempting to attract foreign investment, have yet to yield tangible results for the average Nigerian. Instead, they have fueled inflation and deepened economic inequality.
The removal of the fuel subsidy, which was intended to save the government billions of naira annually, has ironically led to skyrocketing transportation costs and triggered a domino effect on the prices of goods and services. Similarly, the devaluation of the naira has made imports more expensive, driving up production costs for businesses that rely on foreign raw materials.
Economic experts have criticized the government’s inability to complement these policy moves with robust social safety nets or initiatives to support local production.
With inflation spiraling out of control and poverty levels rising, economists are calling for targeted interventions to reduce inflationary pressures, such as improving agricultural productivity, reducing transportation costs, and introducing direct cash transfers to vulnerable households.
The Central Bank of Nigeria (CBN) has maintained a tight monetary policy to curb inflation, but critics argue that high interest rates are stifling economic growth and further squeezing struggling businesses. There is a growing consensus that fiscal policy must work hand-in-hand with monetary measures to address the underlying structural issues driving inflation.