Despite a slight decline in inflation, Nigeria’s persistent high prices continue to disproportionately affect the poor. The rising cost of living is exacerbating social inequalities, driving more families into poverty, and contributing to social discontent.
While the Central Bank of Nigeria (CBN) has made efforts to combat inflation, the impact of rising prices on the most vulnerable populations remains significant. The National Bureau of Statistics (NBS) reported a poverty rate of 38.9 percent in 2023, with approximately 87 million Nigerians living below the poverty line. Food inflation, which constitutes a significant portion of household expenditures for low-income families, remains a major concern. Rising prices for basic necessities are forcing families to make difficult choices between essential needs, education, and healthcare.
The removal of fuel subsidies in 2023 has further exacerbated the impact of inflation on the poor. Increased transportation costs have driven up prices for goods and services, creating a significant burden for low-income households.
The social consequences of Nigeria’s inflation crisis are profound. Rising living costs are fueling social discontent, as evidenced by recent protests. The educational sector is also being affected, with many parents forced to withdraw their children from school due to financial constraints.
Addressing the inflation crisis requires bold and comprehensive policies that not only stabilize the economy but also ensure that the benefits of growth are shared more equitably. By focusing on social welfare, addressing expenditure misallocation, and improving resource allocation efficiency, Nigeria can mitigate the negative impacts of inflation and promote a more inclusive society.
