Despite the suppression of economic activities endured by many Nigerians due to scarcity of the new naira notes and banning of the old notes as a legal tender or as a means of exchange for goods and services. The nation’s inflation rate skyrocked in February, as at February the nation’s inflation rose to 21.91%,now Nigerians are beginning to wonder if the purpose for this policy was achieved at all.
The inflation hike dwarfed the 21.82% recorded in January. The national Bureau of statistics announced to Nigerians that February inflation rate showed an increase of 0.09% compared to that of January’s headline on inflation rate. The recent spike is coming as a result of unprecedented cash crunch as a result of the redesign policy made by the Central Bank of Nigeria (CBN).
Meanwhile the CBN Governor Godwin Emefiele had repeatedly disclosed that the new cash policy and withdrawal limit policy had moderated inflation. Experts have said they are not surprised by the hike in inflation considering that makes redesign policy and demonetisation were not managed in such a way as to benefit Nigerians and the economy at large.
They said the claims by CBN and the federal government that inflation had gone down as evident in the reduction of some perishable food items was indeed a setback for farmers who brought down the prices of goods because they hadn’t buyers to buy their goods.
NBS said that in their report that the inflation as at Wednesday that the increase recorded in all individual consumption by purpose (COICOP) divisions that yielded the headline index.
Reports also has it that food inflation surges to 24.35% compared to the 17.11% recorded in February 2022,the cause is as a result of increase in prices of food, oil and fat,tubers,vegetables etc.
Kwara,Imo,Lagos residents paid for more food in February because of the hike in prices.