Nigeria’s inflation rate has surged to a staggering 34.80% in December 2024, setting a record high that continues to strain households across the country. The National Bureau of Statistics (NBS) report, released on Wednesday, revealed that the sharp rise in the consumer price index (CPI) was driven largely by an increase in demand for goods and services during the festive season. This 0.20% rise from November’s 34.60% figure highlights the growing pressure on Nigeria’s economy as Christmas shopping and other holiday-related expenditures put a significant strain on family budgets.
According to the NBS, the December inflation rate represents a notable increase of 5.87 percentage points compared to December 2023, when inflation was recorded at 28.92%. Despite the marginal month-on-month decline in inflation—falling to 2.44% in December from 2.64% in November—Nigerians are still grappling with the economic realities of spiraling prices that affect everything from food to fuel.
“This persistent inflationary pressure signals deeper economic challenges that are not only seasonal but are embedded in our economic structure,” said Dr. Ngozi Ifeanyi, an economist at the University of Lagos. “The spike during the holiday period is expected, but it highlights how fragile the Nigerian economy is right now. We are seeing a crisis in affordability, especially in key sectors like food and housing.”
Urban vs Rural: A Growing Divide
The NBS report further details how inflation impacted different regions of the country, with urban areas bearing the brunt of the price hikes. Urban inflation surged to 37.29% in December, marking a sharp year-on-year increase from 31.00% in 2023. Rural areas, although still experiencing significant inflation, saw a somewhat lower figure of 32.47%, up from 27.10% in December 2023.
The disparity between urban and rural inflation underscores the uneven economic pressures that Nigerians face depending on their geographical location. While city dwellers face higher living costs due to factors such as transport expenses and higher-priced services, rural communities are also seeing food prices and essential goods becoming more expensive.
In Lagos, the commercial capital of Nigeria, residents have already expressed frustration over the soaring cost of food and transport. “The Christmas season was supposed to bring joy, but it just made everything worse,” said Chinedu Okoro, a Lagos-based trader. “The price of rice and chicken shot up. I had to spend twice what I normally would just to prepare a meal for my family. It’s getting harder to make ends meet.”
The Food Price Dilemma
Food inflation remains one of the most pressing issues for Nigerian families. The NBS report highlighted that food prices surged even more sharply, further deepening the cost-of-living crisis. The report showed that food inflation remained persistently high throughout the year, and while some products saw a minor drop in price from November to December, the overall trend remained upward.
Households have had to adjust to the rising prices of basic food items like rice, flour, vegetables, and poultry. In Abuja, the capital city, many markets have seen a marked decline in consumer purchases as families reduce spending or opt for cheaper, lower-quality goods. “I used to buy chicken for my kids during the holidays, but this year, I had to make do with less expensive options,” said Amina Musa, a mother of three in the Garki area. “The price of food has just become unaffordable.”
The Bigger Picture: A Year of Economic Strain
When viewed in a broader context, the inflation numbers indicate that Nigeria’s economy is facing an ongoing structural crisis. The increase in the average Consumer Price Index (CPI) for the year shows a rise of 33.24%, an 8.58 percentage point increase from the previous year’s 24.66%. Despite attempts by the government to curb inflation through various measures, including fiscal interventions and attempts to stabilize the naira, inflation continues to soar.
Analysts warn that the persistence of inflation poses significant risks to Nigeria’s economic stability and recovery efforts, particularly as the country struggles to address its fiscal deficits and external debts. “We need urgent and effective policy responses to contain inflation,” said Dr. Ifeanyi. “The government must focus on strategies that not only address supply-side constraints but also target inflationary expectations, which are driving price hikes across all sectors.”
Government Action: Is It Enough?
Despite the alarming figures, there have been some measures by the Central Bank of Nigeria (CBN) to stem inflation, such as tightening monetary policy and adjusting interest rates. However, the effectiveness of these policies has been questioned by experts who argue that the underlying causes of inflation, such as supply chain disruptions, rising fuel costs, and foreign exchange volatility, have yet to be adequately addressed.
“The Central Bank’s rate hikes might offer short-term relief, but it doesn’t solve the deep-rooted issues affecting the economy,” said Dr. Kayode Alabi, a professor of economics at the University of Ibadan. “The real issue is a lack of production capacity in Nigeria and the heavy reliance on imports. Until we address these issues, inflation will remain high.”
The government has also attempted to ease the burden on Nigerians by introducing palliatives and subsidies. However, critics argue that these measures have been insufficient, with many people still feeling the pinch.
The Path Forward: What Can Nigerians Expect?
Looking ahead, inflation in Nigeria is likely to remain a persistent challenge. With global factors such as rising crude oil prices and supply chain disruptions continuing to affect the nation, the pressure on the naira and local prices may not ease anytime soon. The demand-driven price hikes observed during the festive period could persist in the coming months as the economy gradually recovers from the post-pandemic shock. For now, Nigerians continue to face the daily reality of rising prices, with no clear end in sight. “We hope things will improve in the new year, but it’s hard to be optimistic with prices going up every month,” said Amina Musa. “All we can
