Times are hard, even for advanced economies.
Everyone feels the pinch of high inflation and general economic slowdown—economists call this stagflation. There is a 98.1% chance the global economy will slide into a recession next year. And the IMF predicts that global growth will fall to 3.2% in 2022 from 6% in 2021, while inflation will peak at 8.8% at the end of 2022.
Nigeria is not left out.
The Nigerian economy is deep in the throes of rising energy and food costs. Diesel prices rose by 174% to ₦790/liter between January and September. And on average, the price of sliced bread (500g) has climbed by 33% to ₦512 (September 2022) from ₦384 last year (September 2021). So, it is no surprise that the latest inflation data puts Nigeria’s inflation rate at 21%. Even Nigeria’s core inflation (which excludes the prices of more volatile items like food and energy) is at 17.6%, a 3.7% increase from January. You will agree that Nigerians are getting poorer every day, and living standards are deteriorating quickly.