Challenges ahead for Nigerians as inflation soars during the festive season

As Nigeria approaches the festive season, many families are bracing for a tough time due to rising inflation. Under the leadership of President Bola Ahmed Tinubu, both the country’s general inflation and food prices have continued to climb, leaving many Nigerians feeling the pinch.

Experts, including economists and financial analysts, say that the government’s efforts to control inflation are simply not enough. Inflation surged to 34.60 percent in November, and experts worry that it will keep getting worse. They also think the federal government’s offer of free train rides over the holidays won’t have much of an effect on the situation.

Prof. Segun Ajibola, a former President of the Chartered Institute of Bankers, and Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise, both shared their thoughts on this during separate interviews on Monday, December 17.

On Monday, the National Bureau of Statistics reported that Nigeria’s inflation rate had increased by 0.72 percent from October to November, reaching a new high of 34.60 percent. Food inflation also jumped to 39.93 percent in November, up from 39.19 percent the previous month.

This increase in prices is partly due to higher costs for energy and transportation across the country.

The Nigerian government recently announced two weeks of free train rides to help reduce the cost of transportation for Nigerians during the holiday season. Mohammed Idris, the Minister of Information and National Orientation, explained this during a press briefing on December 17.

However, experts are not convinced that this will make much of a difference. Prof. Ajibola told Daily Post that the free train service and actions by the Central Bank of Nigeria (CBN) have not been effective in tackling inflation.

“CBN is applying the wrong methods. The real solution lies in improving Nigeria’s economy through better fiscal measures,” he said. He added that the government’s focus should be on reducing production costs and improving the ease of doing business in the country.

Prof. Ajibola pointed out that with the rising inflation, Nigerians will face even more difficulties during the holidays. “Unfortunately, people’s buying power is getting weaker. But the government is trying to help with the free train services,” he noted. When asked about the effectiveness of the free train service, he responded, “It won’t make much of a difference. Less than 1 percent of Nigerians even have access to train services.”

Muda Yusuf also expressed his concerns about the government’s approach. He said, “The government’s monetary policies haven’t been as effective as expected. We need better fiscal responses, such as subsidies for transportation and tax breaks for businesses, to reduce inflation.”

Yusuf also shared that inflation is hurting the everyday lives of Nigerians, especially in terms of food and transportation costs. “It’s a big problem for ordinary citizens. The cost of living is going up, and it’s really affecting people’s well-being,” he said.

While Yusuf praised the free train service, he emphasized that the government needs to focus on long-term solutions. “A one-time subsidy is not enough. We need to see sustainable solutions in areas like transportation, agriculture, education, and healthcare,” he explained.

Yusuf also suggested that the government needs to address issues like rising energy costs, the exchange rate, and insecurity that have all been affecting Nigeria’s economy.

In recent months, the Central Bank of Nigeria has raised interest rates to try to control inflation. In November, the CBN increased the interest rate to 27.50 percent, up from 27.25 percent, in response to the ongoing inflation crisis.

With the holiday season approaching, many Nigerians are hoping for better support from the government to help ease the financial pressure they are facing.