Lagos, Kogi, Rivers Lead As Inflation Hits 27.33%

Lagos, Kogi, Rivers lead as inflation hits 27.33%

Nigeria is facing its worst cost of living crisis in about two decades following the surge of inflation to 27.33% in October. This is as recorded inflation in Kogi (34.20%), Rivers (31.44%), Lagos (31.23%), Oyo (31.21%), and Akwa Ibom (30.74%) outpaced the national average by a distance.

October inflation is the highest rate recorded in the country since August 2005 when it was 28.2%. It is also the 10th consecutive month that the price of goods and services has risen in the country in 2023.

Despite the persistent rise in the inflation rate, the Central Bank of Nigeria, on Wednesday, expressed optimism that the low rate of increase in the average price level in October compared to September 2023, was a pointer to the fact that its monetary policy stance to tighten rates and its money market reforms were yielding the desired effect.

While month-on-month headline inflation in October was 1.73%, which was 0.37 percentage points lower than the rate recorded in September 2023 (2.10%), it was still a 0.61 percentage point increase from the 26.72% (year-on-year) that was recorded in September.

In its Consumer Price Index (October 2023) that was released on Wednesday, the National Bureau of Statistics said, “In October 2023, the headline inflation rate increased to 27.33% relative to the September 2023 headline inflation rate which was 26.72%.

“Looking at the movement, the October 2023 headline inflation rate showed an increase of 0.61% points when compared to the September 2023 headline inflation rate.

“Furthermore, 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%). 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).”

The major contributors to inflation were food and non-alcoholic beverages (14.16%), housing, water, electricity gas and other fuel (4.57%), clothing and footwear (2.09%), transport (1.78%), and furnishings and household equipment and maintenance (1.37%).

Cost of living is worse in cities where urban inflation has risen to 29.29% and a bit milder in rural areas where rural inflation rate in was 25.58% (below the national average). Residents of Kogi (34.20%), Rivers (31.44%), Lagos (31.23%) are spending more on goods and services as their inflation rates are well above the national average.

Inflation rate is lowest in Borno (20.06%), Jigawa (23.52%), Sokoto (24.47%), Kebbi (24.48%), and Katsina (24.56%). Food inflation rose to 31.52% in the month, which was a 7.80 percentage points increase from the rate recorded in October 2022 (23.72%). This is 0.88 percentage points higher than the 30.64% recorded in September.

The cost of food is higher in Kogi (41.74%), Kwara (38.48%), and Lagos (37.37%). It is cheaper in (24.41%), Kebbi (24.90%), and Jigawa (25.10 %). The continued rise in inflation has been attributed to the removal of petrol subsidies and the devaluation of the official exchange rate.

Punch, 16th Nov 2023