Nigeria Inflation Surges to 33.20% Despite Naira Gains: Prices of Goods Soar

Despite the recent strengthening of the Naira against the Dollar in Nigeria’s foreign exchange market, the prices of goods and services in the country have continued to rise at an alarming rate. According to the latest data from the National Bureau of Statistics, headline inflation has surged to 33.20 per cent, with food inflation reaching a staggering 40.01 per cent in March.

This means that Nigerians are facing higher costs for essential items such as yams, garri, rice, and beans, as well as increased expenses for energy sources like fuel, diesel, and electricity. The recent hikes in electricity tariffs have only added to the inflationary pressures faced by consumers.

Despite the Naira’s appreciation against the Dollar, which saw it strengthen to N1,136.04 per Dollar from N1,900 in February 2024, the impact on the prices of goods and services is yet to be felt. Ayo Teriba, the Chief Executive Officer of Economic Associates, has cautioned that it may take anywhere from three to twelve months for the exchange rate improvements to translate into lower prices for consumers.

As Nigerians grapple with the rising cost of living, it is clear that the challenges facing the economy are far from over. The government will need to take decisive action to address the root causes of inflation and ensure that the benefits of a stronger Naira are felt by all citizens.