The economic hardship in Nigeria continues to deepen as the nation faces a significant spike in the cost of living, marking a decade-high increase in the prices of commodities and services. The aftermath of the COVID-19 pandemic combined with global supply disruptions from Russia's invasion of Ukraine has led to an inflationary surge, impacting the poorest segments of society in Sub-Saharan Africa, particularly in Nigeria.
The national currency's devaluation by roughly 10% against the US dollar has compounded these challenges, exacerbating the cost of imports and intensifying the country's already substantial external debt, which constitutes 60% of its total debt.
Recent data from SBM Intelligence highlights an unrelenting rise in the prices of goods and services, signaling the highest inflation rate Nigeria has witnessed in over ten years. This price surge has dramatically affected the purchasing power of Nigerian consumers, essentially erasing the average household's meager incomes.
According to the National Bureau of Statistics (NBS), headline inflation escalated to 31.70% as of February 2024, up from 29.90% in January of the same year. This increase indicates a significant and continual rise in the average price level of goods and services.
A detailed report by SBM Intelligence reviewed the prices of 64 goods and services, revealing stark increases across essential items. Notably, the price of Premium Motor Spirit (PMS) soared by 160.0%, Guinness Stout by 114.0%, and Coca-Cola by 100.0% in just the first quarter of 2024. Other everyday products such as Dudu Osun soap and Indomie noodles also saw significant price hikes, reflecting the broader inflationary pressure.
The NBS report further breaks down the inflation contributors, with food and non-alcoholic beverages leading the increase at 17.20%, followed by housing, water, electricity, gas, and other fuels at 5.56%. The food inflation rate alone stood at a staggering 40.01% year-on-year in March 2024, significantly higher than the 24.45% recorded in March 2023.
Amidst this economic turmoil, the cost of making a pot of jollof rice, a staple for many Nigerian families, surged by 29.3% from October to March 2024, according to SBM's Jollof Index. This index serves as a barometer for measuring inflationary trends through the lens of this popular national dish, providing a tangible reflection of the financial strain on ordinary citizens.
As Nigerians grapple with these harsh economic realities, the escalating cost of living continues to pose severe challenges for households across the nation, highlighting the urgent need for effective governmental intervention to stabilize the economy and alleviate the burden on its citizens.
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