Nigeria’s inflation rate hit a 18-year high of 25.80% in August 2023, according to data released by the National Bureau of Statistics (NBS). This represents an increase of 1.72% from the previous month, and is driven by the removal of petrol subsidies and the devaluation of the naira.
The NBS report showed that food inflation was the highest contributor to overall inflation, rising by 29.34% in August from 26.98% in July. Housing, water, electricity, gas and other fuel, and clothing and footwear were the other major contributors.
On a year-on-year basis, inflation in urban areas was 27.69%, while it was 24.10% in rural areas. Food inflation was 29.34% in urban areas and 26.98% in rural areas.
The highest inflation rates were recorded in Kogi (31.50%), Lagos (29.17%) and Rivers (29.06%), while the lowest inflation rates were recorded in Sokoto (20.91%), Borno (21.77%) and Nasarawa (22.25%).
The government has said that it is taking steps to address the rising inflation, including increasing the supply of food and fuel. However, it is likely that inflation will remain high in the near term.
The high inflation rate is a major concern for the Nigerian government and businesses. It is eating into the purchasing power of consumers and making it difficult for businesses to plan for the future. The government is likely to take further steps to address the inflation, but it is unclear how effective these measures will be.