Nigeria’s annual inflation rate rose to 22.79 per cent in June from 22.41 per cent in the previous month, the National Bureau of Statistics (NBS) said Monday.
The statistics office said the June inflation rate showed an increase of 0.38 per cent points when compared to May 2023 headline inflation rate.
The NBS said on a year-on-year basis, the Headline inflation rate was 4.19 per cent points higher compared to the rate recorded in June 2022, which was 18.60 per cent.
“This shows that the Headline inflation rate (year-on-year basis) increased in June 2023 when compared to the same month in the preceding year (i.e., June 2022),” it said.
According to the report, the food inflation rate quickened to 25.25 per cent in June from 24.82 per cent in May.
President Bola Tinubu had, in his inaugural address on 29 May, announced the removal of fuel subsidy.
Following the announcement, the Nigerian National Petroleum Company Limited (NNPCL) directed its outlets nationwide to sell fuel between N480 and N570 per litre, an almost 200 per cent increase from the initial price below N200.
The hike immediately triggered an increase in transportation fares and prices of goods and services by various percentages.
Inflation has remained high in Africa’s largest economy, prompting the apex bank to hike interest rates to their highest levels in nearly two decades.
In an aggressive push to contain the nation’s inflationary pressure, the Central Bank of Nigeria, in May, raised its benchmark lending rate to 18.5 per cent.
Tinubu Declares State Of Emergency On Food Security
On July 13, 2023, President Bola Tinubu declared a state of emergency on food security in Nigeria.
The President directed that all matters pertaining to food and water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.
The directive was said to be in line with his administration’s position on ensuring that the most vulnerable are supported.
The President said he was not unmindful of the rising cost of food and its effect on the pocket of citizens.
The President also directed the immediate release fertilizers and grains to farmers and households to mitigate the effects of the subsidy removal.
“There must be an urgent synergy between the Ministry of Agriculture and the Ministry of Water Resources to ensure adequate irrigation of farmlands and to guarantee that food is produced all-year round.” the President was quoted as saying.
“We shall create and support a National Commodity Board that will review and continuously assess food prices as well as maintain a strategic food reserve that will be used as a price stabilisation mechanism for critical grains and other food items. Through this board, government will moderate spikes and dips in food prices.
“To achieve this, we have the following stakeholders on board to support the intervention effort of President Bola Ahmed Tinubu: The National Commodity Exchange (NCX), Seed Companies, National Seed Council and Research institutes, NIRSAL Microfinance Bank, Food Processing/ Agric Processing associations, private sector holders & Prime Anchors, small holder farmers, crop associations and Fertilizer producers, blenders and suppliers associations to mention a few.
“We will engage our security architecture to protect the farms and the farmers so that farmers can return to the farmlands without fear of attacks.”