Nigerians Groan As APC-led Government Raises Inflation From 8% In 2015 To Current 33%
Down the years, and especially since last year, Nigerians have expressed anger at the state of the country’s economy.
As of April 2015, the inflation rate in Nigeria stood at 8.7%, but at the end of May 2024, it has hit a record high of 33.95% under the All Progressives Congress (APC)-led administration.
Down the years, and especially since last year, Nigerians have expressed anger at the state of the country’s economy.
The ugly development in the economy has seen the government announce different measures on different occasions, although this has not stopped inflation from continuing its spark.
Some commentators have also called for a strong review of the country’s economic policies.
For context, unemployment is on the high in the country, 63% of persons in Nigeria put at 133 million were multi-dimensionally poor as of 2022, before the Bola Tinubu-led administration came to be.
As of then, the inflation rate of the country stood at around 16%, it is unclear how many people would be said to be poor now, if the same survey was done, given that inflation has grown in the country.
This report looks at the economic indices behind the possible concerns expressed by Nigerians in respect to the economic downturn under the Tinubu-led administration.
On May 29, 2023, the Tinubu-led administration removed fuel subsidies and soon afterwards devalued the country’s currency. These two developments however have had a huge impact on the country’s economy.
Although the government has promised on several occasions to ensure better economic fortunes, this has yet to materialise.
Under the Tinubu led administration, general inflation has been on the increase in the country.
When Tinubu led administration was sworn in May 2023, inflation stood at 22.41% but as of May 2024, stands at 33.95%.
As of April 2015, the inflation rate stood at 8.7%, but as of the end of May, 2024, it has hit a record high of 33.95%.
Food Inflation has also continued steady rise, growing from 13.79% in May 2019 to over 40.66% in May 2024. This represents a 26.87% addition to the 2019 food inflation figure and would mean that food inflation grew by “194%” between May 2019 and May, 2024.
This has left Nigerians unable to purchase food given reduction in their purchasing power.
This development has led to growing hunger and lamentations by many Nigerians affected by the situation.
The worthiness of naira has also reduced under the Tinubu led administration.
For instance , the current minimum wage of the country put at N30,000 would have purchased more in 2019, than the currently proposed N62,000 minimum wage in the country.
Before now, N30,000 could buy 188kg of Garri while N60,000 would buy only 70kg of same Garri.
N30,000 will buy 65kg of Rice while N60,000 will only buy 42kg of Rice.
The price of food has continued to grow under the Tinubu led administration. As of 2019, the price of 1kg of Garri stood at N159 naira but stood at N851 as of April, 2024.
1kg of Rice was N459 as of December, 2019 but sold at N1399 as of April 2024.
Other issues are hike in electricity tariff despite multiple collapse in national grid,drop in electricity generation, unfavourable business climate and they have caused concerns throughout the country, with serious concerns expressed.
Although the government has stated that it plans to fight the food inflation by removing tariffs from food such as Rice, Maize, Wheat, there are still concerns on impacts this would have in curbing the growing inflation in the country.
The executive director of the Paradigm Leadership Support Initiative, Segun Elemo, told SaharaReporters that the government must find a way to quell the issue of food inflation rocking the country.
According to him, everyone in the country is feeling the impacts of these developments which has left Nigeria with no “middle-class citizens”
“It is either you are poor or rich. There is nothing like middle class citizen again in the country as inflation continues to expand” he said.
