By Ayo Yusuf
Despite efforts by the President Bola Tinubu administration to change Nigeria’s monetary and fiscal policies, the nation’s inflation rate rose to 26.72% in September 2023 amid soaring food prices and other harsh economic realities.
According to the September 2023 Consumer Price Index (CPI) and Inflation Report released by the National Bureau of Statistics (NBS) on Monday, the situation was caused largely by the removal of fuel subsidy in May.
The CPI, which measures the changes in the prices of goods and services, rose from 25.80% in August 2023 with an increase of 0.92% points.
“In September 2023, the headline inflation rate increased to 26.72% relative to the August 2023 headline inflation rate which was 25.80%,” the report noted.
It also revealed that, “Looking at the movement, the September 2023 headline inflation rate showed an increase of 0.92% points when compared to the August 2023 headline inflation rate.
On a year-on-year basis, the headline inflation rate was 5.94% points higher compared to the rate recorded in September 2022, which was 20.77%.”
Furthermore, the report said the food inflation rate in September 2023 was 30.64% on a year-on-year basis, which was 7.30% points higher compared to the rate recorded in September 2022 (23.34%).
“The rise in food inflation on a year-on-year basis was caused by increases in prices of oil and fat, bread and cereals, potatoes, yam and other tubers, fish, fruit, meat, vegetables and milk, cheese, and eggs.
“On a month-on-month basis, the Food inflation rate in September 2023 was 2.45%, this was 1.41% lower compared to the rate recorded in August 2023 (3.87%). The decline in food inflation on a month-on-month basis was caused by a fall in the rate of increase in the average prices of potatoes, yam and other tubers, bread and cereals, fruits, and fish,” the report added.
It has been hoped that with the removal of restrictions for some food items previously banned from accessing forex by the Central Bank, their prices will fall.
Last Thursday, the Central Bank of Nigeria had lifted the ban on importers of 43 items previously restricted from accessing foreign exchange on its official platform.
This was disclosed in a statement titled, ‘CBN restates commitment to boost liquidity in the forex market’, signed by the Director, Corporate Communications, Isa AbdulMumin.
“Importers of all the 43 items previously restricted by the 2015 circular referenced TED/FEM/FPC/GEN/01/010, and its addendums are now allowed to purchase foreign exchange in the Nigerian foreign exchange market,” the statement said.
The apex bank said it would continue to promote orderliness and professional conduct by all Nigerian foreign exchange market participants to ensure market forces determined exchange rates on a willing buyer – willing seller principle.
