Nigeria's inflation rises to highest in over 3 years

Headline inflation in Nigeria rose to its highest in 37 months in December 2020, according to the latest consumer price index (CPI) report by the National Bureau of Statistics (NBS).

The agency's January 15, 2021 report showed that the CPI increased by 15.75% (year-on-year) at the end of last year which was especially affected by the COVID-19 pandemic.

While this was 0.86% points higher than the 14.89% recorded in November 2020, the headline inflation only increased by 0.01% on a month-on-month basis, with 1.61% recorded.

Headline inflation report for December 2020 [NBS] Pulse Nigeria

Inflation has consistently increased in Nigeria for 16 straight months starting with Nigeria's decision to close its land borders to stem the activities of smugglers, a decision that heavily impacted business with regional neighbours.

The borders were reopened late last year, with the government expressing satisfaction with the results, a position critics have dismissed.

Despite President Muhammadu Buhari's claims that Nigeria has attained sufficient food security, food inflation similarly rose to its highest in over three years as 19.56% (year-on-year) was recorded in December 2020.

The rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetable, fish and oils and fats.