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Nigeria's inflation soars to 33.69%

Nigeria's inflation rate climbed to a new high in April 2024, reaching 33.69%, according to multiple reports

Techcabal reports Nigeria's Inflation rose to 33.69%, driven by increased demand for food products and fuel scarcity. Food inflation also jumped to 40.53% as consumers sought cheaper alternatives to staples like rice, bread, and yam. Higher electricity tariffs and ongoing naira depreciation added to the inflationary pressures.

Central Bank Governor Olayemi Cardoso has committed to orthodox monetary policies, including stabilising the naira and boosting investor confidence. Despite aggressively raising interest rates in February and March 2024, these efforts have yet to succeed.

Meanwhile, reactions have come in across the country as labour unions blame President Bola Tinubu's economic reforms for the inflation spike and are demanding a significant increase in the minimum wage from ₦30,000 (about $20) to ₦615,000 (about $403) per month to address the rising cost of living.

Benjamin Boachie

Benjamin Boachie, the Chief Economist at SecondSTAX, recommended maintaining a hawkish monetary policy and focusing on improving the agricultural supply chain. He suggested using tools like tax relief and targeted subsidies to mitigate the impact on the most vulnerable.