World Bank Raises Concern Over Inflation in Nigeria in 2022

The World Bank has said Nigeria may have one of the highest inflation rates globally in 2022, with increasing prices diminishing the welfare of Nigerian households.

In the November 2021 edition of the Nigeria Development Update prepared by the global financial institution, Nigeria is projected to have one of the highest inflation rates globally and the seventh-highest among Sub-Saharan African countries in 2022

“In 2022, Nigeria is expected to have one of the highest inflation rates in the world and the seventh highest in Sub-Saharan Africa,” it said.

“High inflation is frustrating Nigeria’s economic recovery and eroding the purchasing power of the most vulnerable households. In the absence of measures to contain inflation, rising prices will continue to diminish the welfare of Nigerian households.”

The bank further highlighted the adverse effects of inflation on Nigeria, which include pushing eight million Nigerians into poverty, and the possible disruption of consumption, investment and saving decisions, among other consequences.

The position of the World Bank is in agreement with the concern of many analysts and concerned Nigeria that the complete removal of fuel subsidy as already announced by the Federal Government will cause severe hardship and will lead to inflation in the country this year.

The Founder and President, Moahz Group Of Companies, Dr. Ojo Abdulqadir was reported by Punch Newspaper to have said that the proposed fuel subsidy removal by the Federal Government will significantly increase Nigeria’s hardship index. He was also said to have added that the said planned fuel subsidy removal should be strategically implemented in a manner that would not plunge more Nigerians into unprecedented levels of economic hardship.

Dr. Ojo’s view continues to buttress the concerns that have been raised already by prominent Nigerians like Femi Falana (SAN), sociocultural groups across the country and Nigeria Labour Congress (NLC).

Recall that NLC has fixed January 27 and February 1 to protest against the planned fuel subsidy removal.

This forecast is coming despite the fact that the World Bank is one of the major forces pushing the federal government to consider the removal of all forms of subsidies in the country without considering the possibilities of such removals heightening the said inflation.