Nigeria’s unabating rising inflation hit an all-time high of 26.72 per cent for September, representing a 0.92 per cent-point rise from the previous month’s 25.80 per cent, data from the recently released Consumer Price Index (CPI) report of the National Bureau of Statistics (NBS) have indicated.
The Statistician-General, National Bureau of Statistics (NBS), Prince Semiu Adeniran, in a statement, attributed the rise in inflation to the removal of petrol subsidies and the devaluation of the official exchange rate, both significantly impacting consumer prices.
Month-on-month inflation rose to 2.18 per cent- a 1.08 per cent difference from the previous month of August.
Concerning year-on-year inflation contributions, Food, and non-alcoholic beverages accounted for the most significant share at 13.84 per cent, followed by housing water, electricity, gas, and other fuels at 4.47 per cent, and clothing and footwear at 2.04 per cent.
In September 2023, urban inflation hit 28.68 per cent, marking a 7.43 per cent increase from the 21.25 per cent recorded in September 2022, while rural inflation stood at 24.94 per cent, indicating a 4.62 per cent-point increase from the 20.32 per cent in 2022.
Food inflation experienced a sharp rise to 30.64 per cent in September 2023, a 1.30 per cent increase from the previous month and 7.30 per cent points higher than the corresponding period in 2022.
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On a month-on-month basis, the Food inflation rate in September 2023 reached 2.45 per cent, which was 1.41 per cent lower compared to the rate in August 2023 (3.87 per cent).
The drop in month-on-month Food inflation resulted from a reduced rate of growth in the average costs of Potatoes, Yam, and other tubers, Bread and cereals, Fruits, as well as Fish.
The annual rate of Food inflation for the twelve months ending September 2023 averaged 25.65 per cent, a 6.29 per cent increase from September 2022 (9.36 per cent).
The “all items less farm produce,” which excludes volatile agricultural produce prices and energy, registered a year-on-year rate of 21.84 per cent in September 2023, up by 4.35 per cent compared to September 2022’s 17.49 per cent.
On a month-on-month basis, the Core Inflation rate for September 2023 was 2.22 per cent, a slight increase from 2.18 per cent in August 2023.
The average twelve-month annual inflation rate for the twelve months ending September 2023 was 19.55 per cent, a 4.48 per cent point increase from September 2022.
The most significant price hikes were observed in the costs of Passenger Transport by Road, Passenger Transport by Air, Medical Services, Furniture Repair, Maintenance, and the repair of personal transport equipment, among others.
For September 2023, the highest year-on-year all items inflation rates were observed in Kogi (32.95 per cent), Rivers (30.63 per cent), and Lagos (30.04 per cent), whereas Borno (21.05 per cent), Jigawa (22.39 per cent), and Benue (23.22 per cent) reported the most gradual increases in headline inflation on a year-on-year basis.
In September 2023, the highest year-on-year Food inflation rates were recorded in Kogi (39.37 per cent), Rivers (35.95 per cent), and Lagos (35.66 per cent), whereas Jigawa (23.41 per cent), Borno (25.29 per cent), and Sokoto (25.38 per cent) reported the most modest increases in Food inflation on a year-on-year basis.
*158 million people face food insecurity in Africa- IMF
At least one hundred and fifty-eight million people are food insecure in Africa, the International Monetary Fund (IMF) has said in its October 2023 special issue report on Africa.
According to the IMF, the figure represents about 13 per cent of the population on the continent.
The IMF also noted that in Africa, only a handful of nations possess the necessary technology, financial means, and capabilities to effectively navigate economic shocks on their own.
This situation is notably challenging for the continent’s fragile and conflict-ridden states, which are highly susceptible to external shocks like soaring food prices, pandemics, and climate-related hazards.
According to the IMF, the ramifications of a nation’s failure hardly stay confined within its borders; instead, they cascade into neighbouring countries and persist across generations.
Hence, addressing conflicts and fragility within states is not just a regional concern; it’s a critical global public good, necessitating concerted efforts to ensure stability and prosperity in the region and beyond.
The interconnectivity of nations also underscores the importance of collective action and international cooperation to promote resilience and mitigate the far-reaching effects of fragility and conflict in Africa.
Meanwhile, the IMF special issue stated that the suspension of the Black Sea Grain Initiative is a worrying development that risks putting renewed upward pressure on international food prices. In addition, elevated oil prices may feed into food prices, including through the price of fertilisers.
