Nigeria has been identified as the fifth hardest-hit African country by the global cost-of-living crisis, according to a mid-2024 index released by Numbeo, a data and research platform.
The country faces significant challenges exacerbated by the end of fuel subsidies in May of the previous year and subsequent reforms aimed at attracting foreign investment and reducing government spending.
The average price of premium motor spirit (PMS) surged by 211% between May 2023 and May 2024, with the pump price increasing from N187 to an average of N630. Additionally, the government’s decision to float the naira in June 2023 led to a 67.8% depreciation, further contributing to inflation and eroding purchasing power.
Food and consumables, which constitute over 50% of Nigeria’s inflation rate, are particularly affected, along with rising energy costs and frequent rental hikes. These factors are pushing many Nigerians closer to or below the poverty line, exacerbating socio-economic challenges in the country.
Despite ongoing agricultural initiatives and state-level programs to address food security, the government has pledged a massive food importation plan to alleviate the crisis.
Minister of Agriculture and Food Security, Abubakar Kyari, emphasized the need to combat rising food prices and ensure food availability for all citizens amidst the ongoing economic difficulties.