The newly released Consumer Price Index report by the National Bureau of Statistics reveals that inflation in Nigeria rose by 17.71% in May 2022, climbing for the eleventh straight month. Food inflation soared by 2.1% month on month in May, a moderate 0.01% higher than what it was in April but an increase still. On a year-on-year basis, the composite food inflation was also on the rise, hitting 19.5% in May – some 113 basis points higher than what was obtained in April. The inflation rate being experienced is likely to get worse, going by predictions by economists and analysts. The Thursday edition of Business Edge features Ayo Akinduyite, Associate Director Tax at PWC, who joins Tolulope Adeleru-Balogun from Nigeria’s capital city, Abuja.
Given the trend that has been apparent for a while, Nigeria’s inflation figure, shocking as it is, is not surprising to many observers, Akinduyite inclusive. “We are not entirely surprised. We saw it coming. The harvest season seemed to have moderated the inflation growth rate to a certain extent, but now those gains are being reversed,” he says while saying it is in line with previous trends and was to be expected.
Nigeria’s multi-head revenue problem doesn’t help: the country’s economy which should be in the $500 million range is at $400 million, there is low revenue from crude oil sales, low foreign reserves and debt in excess of $100 billion. All of these make it unlikely that the country will be able to prevent or speedily alleviate the inflation being witnessed.
Business Edge also features a chat with Douglas Kendyson, founder of Selar.co on the rise of the creator economy. Lekan Onabanjo sits with him to explore how Selar operates within the Nigerian digital economy space and the opportunities available for millions of young, working-age adults in the country and in Africa.
Watch in full above.
