Inflation Rate in Nigeria: Historical Trends


It seem like efforts to bring Nigerian inflation rate to a single digit are proven to be in vain, despite numerous promises made by the Central bank to achieve that within a particular period. At the beginning of last year CBN promised that by 2012 it will be able to bring inflation rate to a single digit.

Numerous factors can be pointed out as being responsible for this failure such as the January fuel price hike and huge liquidity injections into the economy by federal government, analyst

Numerous factors can be pointed out as being responsible for this failure such as the January fuel price hike and huge liquidity injections into the economy by federal government, analyst tend to put aside the contribution of foreign exchange as insignificant. But, before I discuss that let revert back to the current inflationary condition in the economy.The current inflation rate is put at about 12.90% a much higher rate than what obtained at the same period last year. In an economy that grows at about 7% inflation rate of about 13% is not a sign that things are good.

The current inflation rate is put at about 12.90% a much higher rate than what obtained at the same period last year. In an economy that grows at about 7% inflation rate of about 13% is not a sign that things are good.This indicate that profit and growth rate have to move at

This indicate that profit and growth rate have to move at higher rate for investors to feel comfortable or the inflation rate has to come down, either way it looks like the Nigerian authorities are not ready for these scenarios as the contradictory government policies in the last five month has shown.Inflation rates across emerging economies enjoying higher growth rate like Nigeria are as follows: Turkey 10.78%, South Africa 6.2%, China 3.4%, India 7.23%, Brazil 5.10%, and Indonesia 4.5%, all have lower inflation rate than Nigeria, the question is what goes wrong?

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Inflation rates across emerging economies enjoying higher growth rate like Nigeria are as follows: Turkey 10.78%, South Africa 6.2%, China 3.4%, India 7.23%, Brazil 5.10%, and Indonesia 4.5%, all have lower inflation rate than Nigeria, the question is what goes wrong?Does the Central bank lost it monetary independence or does it do as the politicians want it to do? The fact that election has come and gone with it inflationary spending gave hope that inflation is going to come down this year, but half way into the year that has never happen.Right from the budgetary statement, the federal government contradicts itself with it so called mantra about fighting inflation, but inflation is everywhere in the budget.

Does the Central bank lost it monetary independence or does it do as the politicians want it to do? The fact that election has come and gone with it inflationary spending gave hope that inflation is going to come down this year, but half way into the year that has never happen.Right from the budgetary statement, the federal government contradicts itself with it so called mantra about fighting inflation, but inflation is everywhere in the budget.Right from the budgetary statement, the federal government contradicts itself with it so called mantra about fighting inflation, but inflation is everywhere in the budget.The history of inflation in Nigeria is full of up and down, for example, in the middle of 1970s when there was an oil boom in the economy the rate of inflation goes out of the way and the military government of that time did not help matters with it inflationary policies such as the Udoji awards, that unnecessarily put money in the pockets of civil servants.

Right from the budgetary statement, the federal government contradicts itself with it so called mantra about fighting inflation, but inflation is everywhere in the budget.The history of inflation in Nigeria is full of up and down, for example, in the middle of 1970s when there was an oil boom in the economy the rate of inflation goes out of the way and the military government of that time did not help matters with it inflationary policies such as the Udoji awards, that unnecessarily put money in the pockets of civil servants.

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The history of inflation in Nigeria is full of up and down, for example, in the middle of 1970s when there was an oil boom in the economy the rate of inflation goes out of the way and the military government of that time did not help matters with it inflationary policies such as the Udoji awards, that unnecessarily put money in the pockets of civil servants.The short span government of Buhari tried to bring the rate of inflation down after the excesses of civilian administration of Shagari, but the introduction of structural adjustment program (SAP) by Babangida, despite it much popularized potential benefits left the macroeconomic environment highly destabilizing.

The short span government of Buhari tried to bring the rate of inflation down after the excesses of civilian administration of Shagari, but the introduction of structural adjustment program (SAP) by Babangida, despite it much popularized potential benefits left the macroeconomic environment highly destabilizing.Despite the apparent economic benefits of

Despite the apparent economic benefits of return to democracy in 1999, the rate of inflation in much of this period has remained high, further undermining government efforts to entrench macroeconomic stability.

The debt reduction policies of Obasanjo from 1999-2007 have to some extent help to reduce the hike in the inflation rate, but his poor budgetary discipline did not help matters. Corruption and death of infrastructures throughout his period have seriously undermined efforts by some few of his cabinet members to restore macroeconomic stability.

 

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