A new chart by SBM Intelligence has shown how the prices of some selected everyday items will increase by the end of May 2023 if the current inflation rate of 17.71 percent remains the same.
According to the Africa-focused geopolitical research and strategic communications consulting firm, inflation in Nigeria is already one of the highest in the world, and the World Bank estimates that by the end of this year, it is likely to push an additional one million Nigerians into poverty.
“Inflation management specifically, and the larger monetary policy management, as well as the attendant fiscal policy decisions will be crucial to the wellbeing of the Nigerian people in the coming years,” SBM stated.
Headline inflation rate for May 2022 rose to the highest in 11 months and also the fourth consecutive increase since January this year as a result of the Russia-Ukraine crisis.
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Data from National Bureau of Statistics (NBS) show that on a month-on-month basis, it increased by 1.78 percent to 17.71 percent in May from 16.82 percent in April.
Since February, the crisis has intensified the hardship for many people, since both countries are major producers and exporters of agricultural commodities, particularly grains, and countries like Nigeria which depend heavily on them for inputs in direct human consumption and industrial processing.
Analysts at SBM say many developed economies are experiencing record inflation levels, and the factors driving these are already arriving on Nigeria’s shores, to exacerbate our existing inflationary problems.
“Rolling back destructive fiscal policy choices like the fuel subsidies, restricted import lists and others will be a priority for the post-2023 government.
“Fixing the exchange rate regime to remove the current arbitrage by allowing a willing buyer, willing seller mechanism to determine the rate thereby freeing up Nigeria’s foreign exchange supply and bringing more predictability into the market will be crucial,” they concluded.
