Inflation Rises to 32.70% as Economic Pressures Mount

…World Bank expects high interest rates to persist

Samuel Mobolaji

Nigeria’s inflation surged to 32.70 per cent in September, after two months of decline, driven by increasing food and energy prices.

The National Bureau of Statistics (NBS) reported this rise from 32.15 per cent in August, highlighting growing economic pressures. Year-on-year, inflation grew by 5.98 per cent compared to 26.72 per cent in September 2023.

On a month-to-month basis, inflation reached 2.52 per cent in September 2024, up 0.30 per cent from August.

Food inflation, a significant factor, climbed to 37.77 per cent from 37.52 per cent the previous month. Core inflation, which excludes food and energy prices, dropped slightly to 27.43 per cent from 27.58 per cent in August.

Meanwhile, the World Bank has predicted that Nigeria’s interest rates will remain high due to persistent inflationary pressures.

It would be recalled that the Central Bank of Nigeria (CBN) recently increased the monetary policy rate to 27.25 per cent as part of its continued efforts to control inflation.

According to the World Bank’s Africa Pulse report, inflation has been impacted by the earlier devaluation of the naira and the removal of the gasoline subsidy in 2023. While inflation eased in recent months, the latest rise in fuel prices may reverse this trend.

The World Bank forecasts Nigeria’s economy to grow by 3.3 per cent in 2024, with growth reaching 3.6 per cent in 2025-26 as macroeconomic reforms take hold. However, across Sub-Saharan Africa, economic growth remains slow, with a projected rate of 3 per cent in 2024, insufficient to reduce poverty levels significantly.

The report also highlights the need for increased investment in education and human capital as the region’s working-age population grows rapidly.