Nigeria’s inflation is not showing any signs that its about to slow down. I have argued that inflation in Nigeria is largely due to supply side factors. The low level of production has accounted for the large gap between demand and available supply.
As shown above the average quarterly headline inflation rate has continued to accelerate since hitting its lowest rate of 11.3% in the first quarter of 2019. In 2019, President Muhammdu Buhari signed into law a bill that can increase the minimum wage by about 62%. However, not all states can implement the new minimum wage because of poor revenue generation. This shows the need for urgent strategic partnerships between the private sector and government both locally and globally. These partnerships can help boost production and increase foreign earnings.
In the monthly inflation data (March edition) published by the National Bureau of Statistics, Food inflation stood at 22.9% and Health inflation at 15.8%.
*Utility means Water, Electricity, Gas and Other Fuel