Inflation in Nigeria has recorded an upward surge due to hikes in fuel prices and feared insecurity of the commodity.
The development means the purchasing power of Nigerians on a monthly minimum wage of less than $50 is on decline.
Inflation in Nigeria hit 16.8 percent in April following fuel price increases and accelerating costs for food, Nigeria’s National Bureau of Statistics (NBS) revealed.
Nigeria’s annual food inflation increase from 17.2 in March to 18.4 percent, the highest in eight months, according to the data.
The hike in fuel and food prices in the Africans most populous state’s economic is due to global supply disruptions by Russia’s invasion of Ukraine, analysts alleged.
Prices for wheat, the main grain for flour used for pastries and bread, have soared more than 5 percent over past week and over 68 percent yearl., according to Financial Times data according.
Fuel shortages in Nigeria have led to nearby 100 percent increases in transportation fares.
Some have even suspended operations as the price of the commodity rose from 190 to 700 naira ($0.46 to $1.69) per litre.
Read also: Ghana: Vice President rewards taxi driver who returned missing money to owner
Ikemesit Effiong, Lagos based socio-political risk advisor said the hikes in inflation means purchasing power of Nigerian consumers on minimum wage of 18,000 naira ($43.35) per month, are being severely affected.
“With high levels of unemployment and low growth, Africa’s largest economy is in the thoroes of extended state of stagflation. Nigeria is not just dealing with rising inflation” Effiong noted.
Rising state of insecurity across parts of the West African nation and up coming elections spending could influence prices to remain high for much of the remaining months of the year, the analyst further observed.
