It has become indisputable that the economy is biting hard on Nigerians, as indices to measure standard of living continue to reflect the negative. Strains in the economy have, in about a decade, seen the economy posing difficult sides to Nigerians. Recession since 2016 had recorded a wobble that brought the economy into shambles of sliding conditions.
The profile of inflation in the Country has become a case of major concern. Recently, the heightening rise in inflation records has posed before Nigerians strains with umbilical cords of hardship.
Nigeria’s inflation rate has continued to surge, hitting 27.33 percent in October. The record is a 0.61 percentage point from the 26.72 percent that was recorded in September.
In its Consumer Price Index (October 2023), the National Bureau of Statistics (NBS) stated that, “In October 2023, the headline inflation rate increased to 27.33 percent relative to the September 2023 headline inflation rate which was 26.72 percent. Looking at the movement, the October 2023 headline inflation rate showed an increase of 0.61 percentage points when compared to the September 2023 headline inflation rate.”
On a year-on-year basis, the headline inflation rate was 6.24 percentage points higher compared to the rate recorded in October 2022, which was (21.09 percent). This shows that the headline inflation rate (year-on-year basis) increased in October 2023 when compared to the same month in the preceding year (i.e., October 2022).
Major contributors to the increase in inflation were food and non-alcoholic beverages, housing, water, electricity, gas and other fuel, clothing and footwear, transport, and furnishings and household equipment and maintenance. The continued rise in inflation, recently, has been attributed to the removal of petrol subsidies and the devaluation of the official exchange rate, which are two key policies the President Bola Tinubu administration introduced upon commencement since May.
The situation looks far more gloomy as indications by reports have largely predicted further rise in inflation than hopes of the rate winding down. In its recent forecast for the year, KPMG had predicted that Nigeria’s headline inflation may rise to 30 percent by December 2023, citing fuel subsidy removal, and the unification of the foreign exchange market.
It is pertinent to state that the economy is strained and the need for the present government to take the conversation to revamping the economy to a stage of emergent attention, is much more pressing than may be imagined.
A check on the October inflation record found that the major contributors to the rise in rate were majorly driven by factors that bear relevance to basic needs, such as food and non-alcoholic beverages, housing, water, electricity gas and other fuel, clothing and footwear, transport, and furnishings and household equipment and maintenance. It is, hence, indisputable that the common masses have been at the struggling end of the disadvantages.
The need for concerted efforts geared towards the end of policy intervention to address the subjects of dissent, which in their state of deficiencies have continued to make local production of products around the basic needs which are major factors recently driving inflation, has become alarming.
The choice and strength of policies around the sectors of concern remain pertinent. Creating the enabling environment for the manufacturing sector to thrive is one pertinent concern that must be given attention.
The coordination of the economy at this point has become sacrosanct, necessitating intelligent and strategic moves, which the present administration should not afford to gamble with. President Tinubu had recently, in Mecca, Saudi Arabia, while advancing negotiations concerning a multi-billion dollar infrastructure finance facility from the Islamic Development Bank to fund a multi-sectoral portfolio of infrastructure projects at the federal and sub-national levels in Nigeria, said his administration inherited serious liabilities from predecessors, lamenting that Nigeria has serious deficits in port and power infrastructure, as well as agro-allied facilities.
The President, who said he would not make any excuses, however noted his government also inherited assets, saying, “We have serious deficits in port infrastructure, power infrastructure, and agro-allied facilities that will enable sustainable food security in our country. These deficits present an unrivaled opportunity for savvy investors in a market that is by far the largest on the continent. Yes, we had the vision to enable Lekki Deep Seaport before others saw it. We must be bold again.
“We inherited serious liabilities, but also assets from our predecessors. We do not make any excuses. There are several sectors replete with investment opportunities for smart investors. Access to finance and guarantees can be a hindrance in some cases,” the President said.
No doubt, the administration must have inherited problems which accumulated over previous administrations to set the economy in a state of shambles, yet the trust placed on the present administration is the demand to change the narratives, and it would only amount to loss of essence if the government fails in this regard.