Encouraging indicators emerge as the Federal Government’s revenue sees an upward trend, coinciding with a slowdown in food inflation.
This development signals a positive trajectory for the economy, bolstered by effective fiscal measures. Amidst challenges, the government’s revenue growth offers hope for sustained economic recovery. The decline in food inflation provides relief to consumers, reflecting efforts to stabilize prices and enhance food security. While challenges persist, these positive trends underscore the resilience of Nigeria’s economy and the effectiveness of ongoing policy interventions. Continued vigilance and proactive measures remain essential for sustaining this momentum.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, expressed his belief that the Nigerian economy is progressing positively due to the implementation of new administration policies, which have resulted in a slowdown of food inflation.
Speaking virtually on Channels Television’s Business Incorporated programme from Washington DC, where he is attending the IMF-World Bank Spring Meetings, Edun highlighted that he and the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, are in Washington DC to showcase the advancements made in the Nigerian economy.
Emphasizing the efforts of President Bola Ahmed Tinubu’s Economic Team, Edun stated that their aim is to stabilize and stimulate the Nigerian economy through bold, courageous, and strategic reforms, attracting investments and promoting growth.
He further mentioned the positive developments in stabilizing the exchange rate and inflation, with a noticeable slowdown in the rate of food inflation. Edun also acknowledged the increase in government revenues, including oil revenues, although not as much as desired.
In the past few weeks, Nigerians have been grappling with soaring prices of food and essential goods due to the country’s severe economic crisis caused by the government’s decision to remove petrol subsidies and unify forex windows.
However, the latest Consumer Price Index (CPI) report from the National Bureau of Statistics (NBS) revealed a slight decline in the food inflation rate for March 2024, standing at 3.62% compared to 3.79% in February 2024.
On a year-on-year basis, food inflation surged to 40.01% in March 2024, representing a significant increase of 15.56 percentage points from March 2023’s 24.45%. Conversely, Nigeria’s overall inflation rate rose to 33.20% in March 2024, surpassing the previous month’s rate of 31.70%. The inflationary pressure in March was primarily driven by the rising costs of food items like garri, millet, yam, and bread, as well as energy and housing expenses.
This inflation report coincided with the Central Bank of Nigeria’s decision to raise the interest rate from 22.75% to 24.75%. Interestingly, the release of the March inflation rate coincided with some positive outcomes of the apex bank’s efforts to strengthen the naira against foreign currencies.
The naira has experienced a significant appreciation against the dollar in recent weeks, appreciating by over 40% from approximately N1,900/$ to about N1,100/$1. Despite this positive development, Nigerians are still awaiting a substantial reduction in the prices of food and essential goods, as the cost of living remains high.
