Nigeria dey face serious economic challenges as inflation rate don rise to 32.70% for September 2024, according to report from National Bureau of Statistics (NBS). Dis increase be 0.55% higher than August 2024 rate of 32.15%.
The high petrol price be one of the main reasons why inflation dey rise. Since President Bola Tinubu remove fuel subsidy in May 2023, petrol price don increase by about 488% from N175 to N1,030 as of October 2024. Dis hike don cause transportation costs and production costs to rise sharply, leading to higher prices for goods and services across the country.
Food prices also play a big role in dis inflation. Food inflation rate for September 2024 be 37.77%, which be 7.13 percentage points higher than 30.64% recorded in September 2023. Items like rice, maize, beans, and yams see significant price increases.
The depreciation of the naira also contribute to the high inflation. Since the naira float against the dollar, it don lose significant value, trading at over N1,600 to the dollar. This make importation of goods more expensive and push up prices of petrol and other commodities.
Experts like Dr Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, express concern over the resurgence of high inflationary pressures. He say that factors like rising fuel price, depreciating exchange rate, and high transportation costs be driving inflation and reducing purchasing power.
