
Nigeria’s inflation rate increased for the fourth straight month in December, rising to 34.8% year-on-year, up from 34.6% in November, according to data released by the country’s statistics agency on Wednesday.
The rise in inflation was primarily driven by higher demand linked to the festive season, with food and non-alcoholic beverages contributing significantly to the price increases. This continued upward trend follows a sharp inflation spike after President Bola Tinubu’s 2023 decision to devalue the naira and remove fuel subsidies in efforts to boost economic growth and stabilize public finances.
Inflation showed signs of easing in July 2024 as the initial impact of the naira devaluation began to subside, but further increases in petrol prices reignited inflationary pressures, compounding the ongoing cost-of-living crisis in the country.
Food inflation remained a key factor, registering a 39.84% increase in December compared to 39.93% in November. Items such as yam, sweet potatoes, beer, corn, rice, and fish were particularly affected, according to the National Bureau of Statistics.
In response to rising inflation, Nigeria’s central bank raised interest rates six times throughout 2024 in an attempt to control price growth.
Despite these challenges, the Nigerian government remains optimistic about reducing inflation to 15% in 2025, aided by lower petroleum product imports, as outlined by President Tinubu in his budget speech last month.