Nigeria’s inflation rises to 18.48 percent in November

Posted by News Express | 15 December 2016 | 1,906 times

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Finance Minister Kemi Adeosun.

The National Bureau of Statistics on Thursday said Nigeria’s annual inflation rose in November to 18.48 percent.

This is its highest in more than 11 years and the tenth straight monthly rise.

The rise from 18.3 percent in October reflected higher prices for housing, electricity and food, a separate index for which rose to 17.19 percent from 17.1 percent in October, the statistics office said.

“During the month, the highest increases were seen in housing, water, electricity, gas and other fuels, clothing materials and other articles of clothing,” the statistics office said in a statement.

Galloping inflation comes as Africa’s largest economy grapples with its first recession in 25 years, largely caused by the fall in global oil prices since 2014. Crude oil sales account for 70 percent of government revenue.

President Muhammadu Buhari on Wednesday presented a record 7.298 trillion naira ($23.97 billion) budget for 2017 aimed at stimulating growth and pulling the economy out of recession.

Nigeria needs to find money to make up for shortfall in its budget.

The soaring cost of living in Nigeria, where the United Nations estimates that 70 percent of the population live on a dollar a day, has prompted widespread anger at Buhari’s handling of the economy.

Its revenues from oil have plunged due to low global prices and militant attacks in its crude-producing heartland, the Niger Delta.

The recession in Nigeria deepened in the third quarter as oil output fell due to militant attacks in its crude-producing Niger Delta and global prices remained low, choking the economy of much needed dollars to fund imports.

President Muhammadu Buhari has pledged to diversify government revenues to protect the economy from oil price shocks and broaden the tax base. However, results are yet to materialise.

The government is struggling to secure much needed funds to cover a shortfall in its record 6.06 trillion naira budget for 2016 as oil revenues decline. (TV360 Nigeria)

Source: News Express

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