Rising inflation: Nigeria’s weakened economy demands coordinated measures for vitality
Rising inflation rate has become a character of the Nigerian economy. It has remained a parameter reflecting the weakening profile of the economy over time recently. Although report have shown decline in the rate in the past few months of 2021, the effect remains insignificant to the reality of what the economy pose to the people. On Monday, report from the National Bureau of Statistics (NBS) revealed inflation rate rose to 15.6 percent in December last year, 2021, after recording eight months consecutive decline in 2021. The statistics represent a 0.2 percent point rise when compared with 15.4 percent recorded in November 2021. In its consumer price index, (CPI) report for December 2021, the Bureau noted that the food price index also rose by 0.16 per cent points to 17.37 per cent from 17.21 per cent in November 2021.
The report reads: “The CPI which measures inflation increased by 15.63 percent (year-on-year) in December 2021. This is 0.13 percent points lower than the rate recorded in December 2020 (15.75) percent. This is showing slowing down in the rate when compared to the corresponding period of 2020. Increases were recorded in all COICOP divisions that yielded the Headline index. On month-on-month basis, the Headline index increased by 1.82 percent in December 2021, this is 0.74 percent rate higher than the rate recorded in November 2021 (1.08) percent.
“The percentage change in the average composite CPI for the twelve-month period ending December 2021 increased by 16.95 percent from 16.98 percent over the average of the CPI for the previous twelve-month period recorded in November 2021 down by 0.03 percent points.
“Urban inflation rate increased by 16.17 percent (year-on-year) in December 2021 from 16.33 percent recorded in December 2020, while the rural inflation rate increased by 15.11 percent in December 2021 from 15.20 percent in December 2020. On a month-on-month basis, the urban index rose by 1.87 percent in December 2021, up by 0.75 the rate recorded in November 2021 (1.12) percent, while the rural index also rose by 1.77 percent in December 2021, up by 0.73 the rate that was recorded in November 2021 (1.04) percent.
“The composite food sub-index rose by 17.37 percent in December 2021 down by 2.19 percent points when compared to 19.56 percent in December 2020. This rise in the food sub-index was caused by increases in prices of bread and cereals, food product n.e.c, meat, fish, potatoes, yam and other tuber, soft drinks and fruit. On a month-on-month basis, the food sub-index increased by 2.19 percent in December 2021, up by 1.12 percent points from 1.07 percent recorded in November 2021. The average annual rate of change of the Food sub-index for the twelve-month period ending December 2021 over the previous twelve-month average was 20.40 percent, 0.22 percent points lower from the aver-age annual rate of change recorded in November 2021 (20.62) percent.”
The indices determining the weight of Nigeria’s economic profile on the strength of positivity or otherwise, have over time shown the Country economy sliding into the web of weakness with clusters of strains portending stress within the fabrics of the economy. The blow of sliding into recession and the accompanying weakening of the Naira have made situations tough for the economy. It is indisputable that the conditions posed by the economic strains are not in any way good omens for Nigerians. Many Nigerians who have been handicapped and emaciated by the toughening conditions have been exposed to resorting to several unhealthy conducts. Among these have been the increasing resort to crime and other illicit practices to make ends meet.
The situation has recently been worsened with the astronomic rise in the price of food staples. The clustering of the clogs of the strings have formed the bases for collision of deep seated crises heating up the polity. It is largely undisputed that the need for the Government to look in the direction of developing a coordinated system of economic policies modelled in tandem with the peculiar parameters of the Nigerian economy has become sacrosanct. This is essentially significant to blend interfacing architecture of clear cut policies dovetailing towards the need to address the pressing strains to salvage the economy from the web of discomfort, while infusing strategic measures to vitalise same. This is essential to avert the fears of pressing projections against the economy. While it is on record that the inflation rate had recorded an eight month downward slope, April – November in 2021, the development of a rise to close the year’s report is undesirable and hence, demanding concern for concerted efforts to reconfigure the parameters of the economy for better records.
