In Nigeria, inflation continues to break all records, this time reaching its highest rate in 30 years. In May 2024, general inflation reached 33.95% in Africa’s most populous country – while food prices jumped 40.66% compared to 2023.
L’general inflation which is close to 34%, causes the prices of transport, rent, health costs and the price of medicines to jump from month to month, while food inflation above 40% has notably seen the price of fish and cereals explode . The depreciation of the naira against the dollar over the past year has had serious consequences in a country extremely dependent on imports in all areas.
In its recent report on the global economic outlook, the World Bank questions the strategy of the Central Bank of Nigeria, which has repeatedly adjusted its interest rates, which rose to 22.75% in February 2024 and then to 26.25% in May 2024. The World Bank estimates that there is a “ possibility that tightening monetary policy will fail to curb inflation », while growth risks stagnating in 2024-2025.
The institution immediately announced that it had granted two loans to Nigeria to stabilize its economy, support the poorest and improve its non-oil revenues. A program worth $2.25 billion in total – which should also strengthen foreign exchange reserves and support the naira.
Read more on RFI
