The problem of the high inflation rate in Nigeria is a source of concern to both the rich and the poor. The poor in Nigeria cannot afford the prices of commodities in the market. The vulnerable cannot eat twice a day due to the high inflation rate. The household consumers are the ones feeling the heat of high inflation.
The prevailing high inflation in Nigeria is eroding the value of money, which may likely reduce investment and the real GDP growth rate in 2022. All items’ prices shift upward on the other market day. Nigeria’s prices do not obey the law of gravity as prices keep rising instead of falling.
Selected food price watch for May 2022 showed that the average price of 1kg of beans (white, black eye, sold loose) rose on a year-on-year basis by 37.22 percent from N382.37 in May 2021 to N524.70 in May 2022. On a month-on-month basis, this increased by 1.09 percent from N519.05 in April 2022. The average price of 1kg of a yam tuber increased yearly by 37.87 percent, from N269.98 in May 2021 to N372.23 in May 2022, the National Bureau of Statistics (NBS) reported.
Many Nigerians are passing through acute pain as they can no longer eat twice daily due to high commodity prices. Many Nigerians now buy lesser quantities of consumables due to the prevailing high prices in the market. High inflation is killing the economy, and Nigerians need to be saved from the imminent collapse of the economy.
Nigerian producers are also feeling the pains of high prices as the cost of production has risen, and have become so frustrating to contribute meaningfully to the national output. Many producers cannot produce optimally and have reduced human labour.
The prevailing situation in the manufacturing sector can worsen the inflation problem confronting the economy. It is high time actions were taken to save the Nigerian economy.
The current market price of cooking gas is still far above what the majority can afford. A survey of the prevailing prices in some selected states shows that the average price of refilling a 12.5 kg gas cylinder is N10,000. The high price of cooking gas has made life so difficult for the vulnerable in Nigeria.
High inflation in Nigeria can be attributed to a drop in the supply of agricultural products to the market. Many Nigerian farmers in the Middle-Belt and North-East states have not returned to farming due to the fear of being killed or raped by bandits.
Many other farmers are still practising small-scale farming methods. Nigeria’s population calls for mechanised agriculture to produce a large quantity and number of agricultural products for consumption.
Also contributing to high inflation in Nigeria is the high exchange rate. According to Tony Anakebe, managing director of Gold-Link Investment Limited, about 80 percent of importers source forex from the parallel market due to their inability to source forex from the official market.
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Nigerians need a leader with a different value system to help rescue the economy and the vulnerable from the challenges of high inflation. Only a leader who understands the pain high inflation has inflicted on Nigerians will be able to rescue the economy. A leader who has the interest of the people at heart, and who does not embezzle public funds will be able to envision a great Nigeria and strive to restore value to the naira.
Nigeria’s survival and continued existence depend on the outcome of the next general elections. Nigerians must resist any attempt to buy over their votes by the politicians. All Nigerians, irrespective of their tribe, language, and religion must jointly decide on who is competent to rescue the Nigerian economy from the impact of high inflation and bad economic policies.
Nigerians need a leader who has the political will to exercise direct control on prices to bring down the inflation rate to a low single-digit. Low inflation and sustainable growth are the primary macroeconomic goals of every developing country. The prevailing high inflation rate in Nigeria has a negative impact on every sector of the economy.
The enormous socio-economic problems confronting the Nigerian economy call for the thoughtful recruitment of a leader who has a broad understanding of the problems and possesses the capacity to remedy the laughable economic situation in the country.
Felix Ashakah is an economics lecturer at Western Delta University, Oghara
