Nigeria’s inflation surged to 21.82 percent in January 2023, according to the National Bureau of Statistics (NBS). This rise follows a redesign of the naira by the Central Bank of Nigeria (CBN) and represents a 0.48‑percentage‑point increase from the 21.34 percent recorded in December 2022. The figure marks a 17‑year high, ending a brief dip in December 2022 after 11 consecutive months of rising inflation.
The NBS attributes the 2022 inflation climb to several factors: disruptions in food‑product supply, higher import costs driven by the naira’s depreciation, and a general increase in production costs. In its Consumer Price Index report for January 2023, the bureau noted that the headline inflation rate rose to 21.82 percent from 21.34 percent in December, a month‑on‑month increase of 0.47 percentage points. On a year‑on‑year basis, the rate was 6.22 percentage points higher than January 2022’s 15.60 percent, underscoring a significant upward trend.
The NBS identified specific price drivers behind the surge, including higher costs for bread and cereal, actual and imputed rent, potatoes, yam and other tubers, vegetables, and meat.
The CBN maintains that its naira redesign policy will help curb inflation. Acting Branch Controller in Ondo State, Mr. Giwa Ademola, explained that the redesign will bring hoarded currency into the banking system, enhancing the effectiveness of monetary policy. He added that the move will provide more accurate data on money supply and monetary aggregates, enabling better design and implementation of monetary policy.
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