Nigerians Experienced Inflation 67 Times Under Emefiele
- Under the suspended Governor of the Central Bank of Nigeria, Nigeria witnessed inflation 67 times
- A recent report noted that the consumer price index was about 8.2% when Emefiele mounted the saddle in 2014
- In 2015, inflation rose 10 times, one year after Emefiele became CBN boss
According to a recent report, inflation has not increased less than 67 times since June 2014, four months after Godwin Emefiele became the Governor of the Central Bank of Nigeria (CBN).
Inflation rate data provided by CBN shows that the consumer price index was 8.2% in June 2014 when Emefiele assumed office.
Source: Getty Images
Inflation rose 10 times in one year under Emefiele
Nigeria currently battles with an inflation rate of 22.22% as of April 2022, rising by 0.03% to 22.41% in May, the highest in 17 years.
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The development means that inflation rose by 14.02 percentage points while Emefiele mounted the saddle at the bank.
A breakdown of the number of times inflation rose indicates that it increased thrice between June and December 2014.
By 2015, inflation rose 10 times, except in June and October.
Inflation worsened in 2016 as Nigeria marked double-digit inflation and was on the increase all through the year, rising 12 times.
Nigeria experienced a recession in 2016, the first under the Emefiele.
In 2017, inflation rose only in July and recorded different decline rates in the same year.
In 2018, inflation rose only four times - August, September, November, and December.
In 2019, Nigerians experienced inflation six times, showing Nigerians paid more for their purchases.
Nigeria entered another recession in 2019 as the COVID-19 pandemic affected global economies.
The same year, inflation rose from 12.31% in January to 15.57% in December.
There was an improvement in 2021 as inflation rose four times that year - in January, February, March, and December.
In 2022, inflation rose 10 times under Emefiele, except in January and December.
By the end of 2022, Nigerians had experienced inflation 63 times under Emefiele.
However, inflation has risen throughout 2023, from 21.82% in January to 22.22% in April.
CBN gives reasons for increasing monetary policy rate
Analysts say the increase in inflation happened despite tightening monetary policies of the CBN to curb inflation.
In 2022, CBN decided to continuously hike interest rates and a naira redesign to control the amount of cash in circulation.
The CBN had increased MPR from 11.5% in early 2022 to 18.5% in May this year, a seven consecutive rate increase.
Within 12 months, Nigeria’s interest rate rose by 800 basis points, according to a Punch report.
The suspended CBN governor stated that CBN decided to keep increasing the MPR to address inflation.
He said the loosening of the MPR would contradict the objective of the pent-up aggregate demand, which fuelled inflation.
Despite the negative adverse effect of the hike on the private sector, the CBN said it would continue to hike rates until inflation falls below 15%
Ondo leads as 10 Nigerian states battle highest inflation in May 2023
Legit.ng earlier reported that according to investment analysts, Nigeria’s headline inflation will rise above 23% on the back of recent government policies, which include fuel subsidy removal and naira devaluation by the Central Bank of Nigeria (CBN), leading to the massive depreciation of the naira.
However, the National Bureau of Statistics (NBS) said in its Consumer Price Index (CPI) report that headline inflation rose year-on-year by 0.19 percentage points to 22.41% in May 2023 from 22.22% in April.
May inflation rate is the highest since September 2005 and the third straight month of staying within the 22% zone.
Source: Legit.ng
