In a recent announcement, the statistics office revealed that Nigeria’s annual inflation rate surged to 25.8% in August, up from 24.08% in July. This unsettling increase in inflation has thrown Africa’s largest economy into a state of economic turmoil, with citizens grappling with the severe impacts of soaring living costs.
In a bid to attract investors, President Bola Tinubu took the significant step in May of abolishing exchange restrictions and terminating a long-standing, albeit costly, petroleum subsidy. While this move initially held promise for the nation’s economic prospects, it has led to a sharp escalation in prices across various sectors, including food and transportation. The resulting financial strain on the population has prompted unions to threaten strikes in protest of these economic hardships.
Government data indicates that Nigerians have not witnessed an inflation rate of this magnitude since August 2005. The current situation raises concerns about the nation’s economic stability and the well-being of its citizens.
More details on this developing economic situation will be provided in subsequent reports.