Inflation rate hits 34.80%, as expert warns ‘excessive revenue targets may worsen inflation’

Nigeria’s headline inflation experienced a slight increase, reaching 34.80 percent in December 2024 according to the latest statistics released by the National Bureau of Statistics (NBS).

The increase marks a marginal rise of 0.20 percent from November 2024’s rate of 34.60 percent, primarily driven by the increased demand for goods and services during the festive season.

In December 2024, the headline inflation rate of 34.80 percent was 5.87 percent higher than the rate recorded in December 2023, which stood at 28.92percent.

This year-on-year increase indicates a significant rise in the cost of living compared to the same month in the previous year.

On a month-on-month basis, the headline inflation rate in December 2024 was 2.44 percent, slightly lower by 0.20 percent compared to the rate recorded in November 2024, which was 2.64 percent. This indicates a slight deceleration in the rate of price increases from November to December 2024.

In November 2024, the headline inflation rate was recorded at 34.60 percent, showing an increase of 0.72 percent from October 2024’s rate of 33.88 percent.

On a year-on-year basis, the headline inflation rate for November 2024 was 6.40 percent higher than the rate in November 2023, which was 28.20 percent. Additionally, the month-on-month inflation rate for November 2024 was 2.638 percent, marginally lower by 0.002 percent compared to October 2024’s rate of 2.640 percent.

Meanwhile, the Chief Executive Officer (CEO) of the Centre for Promotion of Private Enterprise (CPPE), Dr Muda Yusuf has warned that setting excessive revenue targets for government agencies may worsen the inflationary pressure on the country.

In a statement yesterday, the CPPE Chief Executive expressed worry about the current fixation of the National assembly on revenue, especially the arbitrary revenue targets for MDAs.

“Excessive pressure on MDAs to boost revenue and increase IGR has profound inflationary implications. Reality is that Such pressures are invariably transmitted to investors in form of higher fees, levies, penalties, import duties, regulatory charges etc. These outcomes are in conflict with government aspirations to boost investment, curb inflation and create jobs.

“Revenue targets should be based on empirical studies, absorptive capacity of the economy and due consideration of the wider economic implications. Obsession with revenue would hurt investments, worsen inflationary pressures, aggravate poverty and impede economic growth.”

He recommended that there should be a careful balance act between revenue growth aspirations, desire to boost investment and commitment to moderate inflation.

Dr Muda Yusuf also urged the Central Bank of Nigeria (CBN) to pause on monetary policy tightening and interest rate hikes to reduce business operating costs.

He noted that the inflation outlook for 2025 promises to be positive on the basis of sustained moderation in exchange rate volatility, improvements in foreign reserves and prospects of easing geopolitical tensions with the inception of the Trump presidency in a few days time.

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