Nigeria and inflation

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The World Bank has declared that food prices have sent millions of Nigerian citizens into poverty. This is following a new report that spectated the nation’s high inflation rate.

The Bank says high inflation driven by soaring food prices has pushed millions of Nigerians into poverty and this is because the World Poverty Clock has estimated that nearly 87 million people are now living on less than $1.87 a day.

Food prices accounted for over 60% of the total increase in inflation and the food price increase in May was said to be at 22.28%..

In a new report, the bank commended Nigeria for buttressing its economy from the fallout from the coronavirus pandemic but called for urgent measures to break inflation and protect.

Nigeria is a major crude exporter and Africa’s largest and most populous economy.

It slipped into a recession in late 2020 owing to lower oil prices and the Corona Virus Pandemic, but unexpectedly emerged from the slump in February.

In May, the National Bureau of Statistics revealed that another inflation dipped the nation to 17.93%, and this is just below the four-year high of 18.17% registered in March,

Reports say the World Poverty Clock, uses UN, IMF and World Bank data to monitor progress against poverty.

The World Bank Country Director for Nigeria, Shubham Chaudhuri said: Nigeria faces interlinked challenges in relation to inflation, limited job opportunities, and insecurity. While the government has made efforts to reduce the effect of these by advancing long-delayed policy reforms, it is clear that these reforms will have to be sustained and deepened.

Nigeria however needs urgently to reduce inflation by promoting inclusive growth and job creation and helping small and medium businesses gain access to finance, it said.

The Covid-19 pandemic and the oil price crash have hammered Nigeria’s economy, which gets 90% of foreign exchange earnings from petroleum exports, pushing it into its second recession in four years.

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