Despite the recent strengthening of the Naira against the Dollar in the foreign exchange market, the cost of goods and services in Nigeria continues to surge, painting a concerning picture for consumers. According to the National Bureau of Statistics (NBS), headline inflation skyrocketed to 33.20 percent, with food inflation spiking to 40.01 percent in March.
The latest data indicates that Nigerians are facing increased expenses for essential items and services, particularly staple foods like yams, garri, rice, and beans. Additionally, the escalating costs of energy sources such as fuel, diesel, and the recent electricity tariff hikes have further fueled inflationary pressures.
Despite the positive trend in the Naira’s value against the Dollar since February 2024, with the Naira appreciating to N1,136.04 per Dollar from N1,900, the impact on consumer prices has yet to materialize fully.
Ayo Teriba, the Chief Executive Officer of Economic Associates (EA), emphasized that the effects of the exchange rate improvement on the prices of goods and services in Nigeria may take between three to twelve months to be felt. The complex interplay of various economic factors underscores the need for a comprehensive approach to address inflation and ensure sustainable economic stability for Nigerians.
