Doris Dokua Sasu
Research Expert Ghana and Nigeria
Prices and inflation in Nigeria - statistics & facts
In 2023, Nigeria recorded one of the highest inflation rates in the world at around 25 percent. Higher inflation rates are typically more present in emerging economies. There are several reasons for this. Emerging economies are likely to grow faster, leading to an increase in demand for goods and services. However, when the demand increases but the supply stays the same, prices often increase, leading to inflation. Another factor that plays a role is the lack of a well-established monetary policy. This can turn into manipulation of the currency in order to achieve short-term goals, for instance, to decrease the cost of exports. In addition, the excess of money printing presses the currency downward and pushes inflation higher.
In urban Nigeria, the inflation rate is higher than in rural communities. In August 2023, the year-on-year urban rate was around 28 percent, while in rural zones it was 24.1 percent. Also as of the said period, the Consumer Price Index in Nigeria was 593.6. Compared to August 2022, CPI increased by some 26 percent. This means that inflation has been constantly increasing in the last months and the purchasing power of consumers in the national currency (Naira) decreased. The trend of the CPI of food shows a particularly high growth rate, at 737.3 in September 2023, increasing by around 31 percent compared to September 2022.
The prices of food in Nigeria are experiencing a constant increase, in particular for sweet potato and unripe plantain. The price of sweet potato grew by over 182 percent compared to the previous year, while the price of unripe plantain rose by around 168 percent. Other food products that recorded the highest growth in prices are rice and yam tuber. Together with food, further sectors that have experienced a price increase are those of non-alcoholic beverages, transport, clothing and footwear, as well as housing, water, electricity, and gas and other fuels.
Regarding fuel and gas prices, the average diesel price paid by consumers in Nigeria amounted to 890.1 Naira per liter, in September 2023, roughly 0.6 U.S. dollars, with the South-East registering the highest prices. As of January 2024, the average price of gasoline was 668.3 Naira per liter (0.4 U.S. dollars). Over the previous year, the lowest price was recorded in May 2023, when it reached 238.1 Naira. During the coronavirus (COVID-19) pandemic accompanied by decreases in national and international movements, the demand for oil decreased and prices dropped. However, steady price increases have emerged since January 2022. Eventually, the price of cooking gas (liquefied petroleum) in Nigeria was around 4,073 Naira (2.7 U.S. dollars) per five kilograms as of July 2023. Large differences in refilling prices are also observable by state.
In urban Nigeria, the inflation rate is higher than in rural communities. In August 2023, the year-on-year urban rate was around 28 percent, while in rural zones it was 24.1 percent. Also as of the said period, the Consumer Price Index in Nigeria was 593.6. Compared to August 2022, CPI increased by some 26 percent. This means that inflation has been constantly increasing in the last months and the purchasing power of consumers in the national currency (Naira) decreased. The trend of the CPI of food shows a particularly high growth rate, at 737.3 in September 2023, increasing by around 31 percent compared to September 2022.
The prices of food in Nigeria are experiencing a constant increase, in particular for sweet potato and unripe plantain. The price of sweet potato grew by over 182 percent compared to the previous year, while the price of unripe plantain rose by around 168 percent. Other food products that recorded the highest growth in prices are rice and yam tuber. Together with food, further sectors that have experienced a price increase are those of non-alcoholic beverages, transport, clothing and footwear, as well as housing, water, electricity, and gas and other fuels.
Regarding fuel and gas prices, the average diesel price paid by consumers in Nigeria amounted to 890.1 Naira per liter, in September 2023, roughly 0.6 U.S. dollars, with the South-East registering the highest prices. As of January 2024, the average price of gasoline was 668.3 Naira per liter (0.4 U.S. dollars). Over the previous year, the lowest price was recorded in May 2023, when it reached 238.1 Naira. During the coronavirus (COVID-19) pandemic accompanied by decreases in national and international movements, the demand for oil decreased and prices dropped. However, steady price increases have emerged since January 2022. Eventually, the price of cooking gas (liquefied petroleum) in Nigeria was around 4,073 Naira (2.7 U.S. dollars) per five kilograms as of July 2023. Large differences in refilling prices are also observable by state.
