Nigeria’s Inflation Surges to 26.72% in September 2023, Driven by Fuel Subsidy Removal and Exchange Rate Devaluation

Nigeria is grappling with a significant surge in inflation with the Consumer Price Index (CPI) for September 2023 rising to a concerning 26.72%, according to the latest National Bureau of Statistics (NBS) report released on Monday.

This represents a sharp 0.92% point increase compared to the previous month’s 25.80% level.

The primary factors behind this startling increase are the removal of petrol subsidies and the devaluation of the official exchange rate.

Both these decisions have had a substantial impact on consumer prices across the nation.

The month-on-month inflation rate saw a 1.08% increase from the preceding month of August to 2.18% in September.

Year-on-year inflation reveals that food and non-alcoholic beverages contributed the most at 13.84%, followed by housing, water, electricity, gas, and other fuels at 4.47%, and clothing and footwear at 2.04%.

Urban inflation, particularly concerning, hit 28.68% in August 2023, a 7.43% point increase from September 2022.

Meanwhile, rural areas experienced an increase from 20.32% in 2022 to 24.94%.

Food inflation saw a sharp rise to 30.64% in September 2023, a 1.30%-point increase from the previous month and a staggering 7.30%-point increase from the same period in 2022.

This was partially mitigated by a drop in the month-on-month food inflation rate due to slower growth in the costs of certain staple items.

The report also noted that “All items less farm produce and energy” registered a year-on-year rate of 21.84%, reflecting the broader impact of inflation across various sectors.

These economic challenges are affecting citizens’ daily lives, with notable price hikes observed in passenger transport, medical services, and furniture repair, among other areas.