Festive Sales Spike Nigeria’s Inflation to 34.8% – NBS

Nigeria’s inflation rate surged to 34.80% in December 2024, up from 34.60% in November, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) on Wednesday. The rise, although marginal at 0.20%, reflects increased demand for goods and services typical of the festive season.

The December 2024 inflation rate represents a sharp year-on-year increase of 5.87% compared to 28.92% in December 2023. This escalation highlights the growing economic strain on Nigerians, particularly in the face of rising prices for essential goods and services.

The report noted: “The increase in the inflation rate for December was driven by festive season demand for goods and services.”

Food inflation remains a significant concern, hitting 39.84% year-on-year in December 2024, a notable rise from 33.93% in December 2023. The spike is attributed to higher prices for staples like yam, sweet potatoes, rice, maize, bread, cereals, and fish. These staples are critical to the average Nigerian diet, making the rising costs particularly burdensome.

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The current inflation levels reflect what many describe as the worst cost-of-living crisis since Nigeria gained independence more than 60 years ago. When President Bola Tinubu assumed office in May 2023, inflation was at 22.41%.

Since then, it has soared by over 12%, a trend attributed to two major policy decisions: Petrol Subsidy Removal: Ending the subsidy has led to higher transportation and production costs, which ripple across various sectors and Forex Rate Unification: The unification of Nigeria’s foreign exchange rates has impacted import costs, further driving inflation.

In December 2024, President Tinubu presented a ₦49.7 trillion budget to the National Assembly, expressing an ambitious plan to reduce inflation to 15% by 2025. While this goal reflects optimism, many economists remain skeptical, describing it as aspirational and overly bullish given the current economic realities.