CBN says Nigeria’s inflation crisis ‘not so bad’ compared to other African nations
The annual inflation rate in Nigeria rose for the fourth month to a near 18-year high of 22.41% in May 2023, up from 22.22% in the prior month and matching market estimates. [Photo: Lagos City, Nigeria]
- Amid global inflation concerns, the Central Bank of Nigeria (CBN) asserts the nation fares better than many African peers.
- The inflation rise was attributed to the Russia-Ukraine conflict and shifts in global energy and property markets.
Amidst rising inflation, the Central Bank of Nigeria (CBN) offers perspective on Nigeria’s economic performance relative to other African nations.
Acting CBN Governor Folashodun Shonubi, speaking at the 2023 Zenith Bank International Trade Seminar, highlights how Nigeria fares in the face of global challenges.
Shonubi referenced specific inflation rates from around the world, underscoring the global nature of the issue.
“Now, when you come down to Africa and neighbouring Ghana, at the last count, inflation there is at 42.5%. We have it at 31% in Ethiopia and 36% in Egypt,” he said.
The CBN Governor went on to emphasise the broader context, including global challenges influencing inflation rates.
“Today, the IMF has revised growth downwards from 3.5% to 3% this year and 3% next year. For Sub-Saharan Africa, they expect growth to moderate from 4.1% last year to 3.5% this year, but to return to just slightly over 4% next year. In Nigeria, they expect us to do 3.2% this year,” he explained.
While the CBN’s stance attempts to provide perspective on Nigeria’s inflation situation, critics argue that the complex realities faced by Nigerian citizens cannot be brushed aside.
