Nigeria’s Inflation Hits 34.8% in December 2024, Food Prices at Decade-High
In December 2024, inflationary pressures continued to weigh heavily on Nigerian households as consumer prices surged, closing the year at 34.8%, according to data from the National Bureau of Statistics (NBS). The figure underscores a tough economic environment, with food inflation—a major contributor—rising to 39.84%, driven by festive season demand and lingering supply chain challenges.
This trend not only threatens the purchasing power of Nigerians but also puts additional pressure on the Central Bank of Nigeria (CBN) to take aggressive measures to tame inflation in 2025.
Food Prices Drive Inflation
Food prices have been the leading driver of Nigeria’s soaring inflation, with staples and proteins becoming increasingly expensive. Many households were forced to opt for cheaper alternatives during the December festive period, further underscoring the strain on consumer spending.
“Frenzied festive buying and high seasonal demand pushed food prices even higher,” said Samuel Oyekanmi, an analyst at Norrenberger.
While seasonal trends typically drive December price hikes, the persistent inflation throughout 2024 signals deeper systemic issues, such as:
- Supply Chain Disruptions: Poor infrastructure and insecurity in food-producing areas.
- Exchange Rate Volatility: Naira depreciation has made imports costlier, impacting food and energy prices.
- Energy Costs: Increased fuel prices continue to exacerbate logistics and production costs.
A Year of Missed Inflation Targets
The CBN had set an ambitious target of 21% inflation for 2024 but fell significantly short as the year ended with inflation 14% higher than anticipated.
In response, President Bola Tinubu recently stated that the 2025 budget aims to reduce inflation to 15%, a goal met with skepticism. Analysts, including those from the NESG-Stanbic IBTC Business Confidence Monitor, project inflation to only moderate to 27.1% by December 2025.
“Despite policy adjustments, achieving a significant decline in inflation in 2025 seems unlikely,” said Oyekanmi. “However, it could serve as a test run for long-term stability if executed correctly.”
NBS Cyberattack Delays Data Release
The inflation data release was delayed due to a cyberattack that crippled the NBS website on December 18, 2024. It took engineers three weeks to restore the site, drawing criticism from cybersecurity experts.
“Resolving such an attack should take hours, not weeks,” said an ethical hacker consulted by Condia.
The delay in disseminating critical economic data raises concerns about the country’s digital infrastructure, particularly at a time when real-time data is vital for informed policymaking.
What Lies Ahead?
With inflation at multi-decade highs and food prices showing no signs of abating, the CBN is expected to adopt a more aggressive stance in its upcoming Monetary Policy Committee (MPC) meeting later this month.
The bank has already raised rates significantly throughout 2024, but further hikes might be necessary to combat inflation, even as such measures could dampen economic growth.
Conclusion
The year 2024 was marked by persistent inflationary pressures that eroded consumer purchasing power, missed economic targets, and highlighted systemic challenges in Nigeria’s economy.
As the country enters 2025, all eyes are on the government’s ability to implement effective fiscal and monetary policies to restore economic stability. However, with food prices still at unsustainable levels and external factors like exchange rate volatility at play, the road to lower inflation remains steep.