Nigeria’s headline inflation accelerated in October 2024, reaching 33.8%, up from 32.7% in August, according to the National Bureau of Statistics (NBC).
On a month-on-month basis, food inflation was highest in Adamawa (5.08%), Sokoto (4.86%), and Yobe (4.34%), while Kwara (1.11%), Ondo (1.31%), and Kogi (1.50%) recorded the slowest rise in Food inflation.
This surge is reported to be the highest inflation level in the past two decades, intensifying pressure on households, businesses, and policymakers. The increase was driven majorly by rising food and energy prices, compounded by the lingering effects of subsidy removal and currency depreciation.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Notably, Nigerians are grappling with the country’s worst cost-of-living crisis in decades. The increase in the costs of food prices has created significant barriers for many families in the country, making it more difficult for them to access essential food items. Recall that in 2023, Picodi, an international e-commerce organisation, revealed that Nigerian households spend 59 percent of their income on food, the highest globally.
While the harvest season last month initially helped stabilize food prices, flooding in key agricultural states increased transportation costs, which reversed these gains. The floods reportedly destroyed enough food to feed 8.5 million people for six months. Additionally, delays in implementing a 150-day waiver on food imports exacerbated the situation. The NBS report indicated that staple items such as rice, bread, and cooking oil experienced significant price surges.
Also, the cost of Petrol has surpassed N1,000 per liter increasing the cost of transportation, while Electricity tariffs have significantly increased, particularly for high-tier consumers, yet power outages persist, with multiple grid collapses reported.
Several analysts noted that the persistent exchange rate volatility is one of the central issues aggravating inflation. They further noted that the Central Bank of Nigeria (CBN) monetary tightening has struggled to fully anchor inflation expectations amid these structural challenges.
At its last meeting in September, the CBN raised interest rates by 50 basis points, citing continued increases in core inflation. With inflationary pressures showing no signs of slowing down, analysts predict the Bank will deliver another 25 to 50 basis point hike at its next Monetary Policy Committee meeting.
According to a Steve Hanke report, Nigeria’s inflation stood at a crushing 111%/yr, making it the 4th highest in the world. The country’s current inflation surge underscores the urgent need for policies to stabilize prices and alleviate the economic burdens on Nigerians. The CBN’s upcoming decision will be closely watched as it seeks to balance inflation control with economic growth.
However, experts predict that food inflation will likely remain high until the insecurity crisis deterring farmers from planting is resolved. Meanwhile, President Tinubu’s administration has emphasised that tackling the country’s food insecurity is a key focus in his economic reform.