The cost of living is on the rise in Nigeria as the inflation rate continues to mark a rise for the fourth month in a row.
Reuters reported that the December inflation rate reportedly increased by 0.20% from the previous month, rising to 34.80% in annual terms. The data provided by the statistics agency accounted for the higher inflation rate by attributing it to a higher demand for food and non-alcoholic beverages, particularly during the holiday season.
Although President Bola Tinubu predicted that the rate would drop by 15% throughout the year, the food inflation was marked as 39.84% year-on-year in December as the prices of corn, rice, fish, yam, sweet potatoes and beer all marked an increase.
“My family is now living one day at a time (and) trusting God,” said trader Idris Ahmed per AP News back in February. Ahmed also reported that the sales of his clothing store in Nigeria’s capital declined by more than 70%, dropping from an average of $46 daily to $16.
The higher cost of living, marked as the worst in the past 28 years, can be traced to President Tinubu’s movement to devalue the national currency in 2023, choosing to allow market forces to compare the naira to the dollar. Along with the devaluation of the naira, the end of gas subsidies has led to an over 200% increase in gas prices, contributing to increased costs of powering the generators that run homes and businesses.
Nigeria's inflation rate hit 34.8% in December 2024, a near 30-year high, up from 34.6% in November. Food inflation eased to 39.84%. The Consumer Price Index (CPI) rose by 2.44% month-on-month, slowing from a 2.64% increase in November. pic.twitter.com/mIVeUyqoIV
— northcourt (@Northcourt_RE) January 17, 2025
The inflation rate continues to rise, even after public sector workers in Nigeria receive an increased minimum wage. The increased minimum wage was reportedly set to 70,000 naira, equivalent to $44, and was six times less than the unions requested. The unions accepted with “mixed feelings” as they asked for an increase to 500,000 naira as the minimum wage.
Nigeria is not the only country in Africa that is currently struggling with inflation rates.
As of October last year, Zimbabwe’s inflation rate increased to 37.2% monthly. The increased consumer inflation resulted from the country’s devaluation of their respective currency.
The central bank allowed the value of the gold-backed currency to fall by over 42%, decreasing to approximately 27.6880 to the dollar as of October.
The country itself has also had the inflation rate exacerbated by the “worst drought in a century,” leaving over 60% of Zimbabwe’s 15 million residents affected and impacting power and agriculture.
The drought has been induced by El Nino, which is linked to the warming of the waters. The crops and livestock production have all been affected, further damaging the country’s economy.
The dry spell is expected to continue, with many families reporting that they are skipping eating to preserve the food already in their possession.
“I can now afford to eat once a day,” said citizen Georgina Maphosa per Reuters. “I had hoped that this season would be better, but my early crop is already a write-off.”
