Nigeria faces a difficult festive season as inflation continues to rise under President Bola Ahmed Tinubu’s administration, with the latest data showing a headline inflation rate of 34.60% in November. Food inflation has also worsened, reaching 39.93%, further squeezing the purchasing power of Nigerians. Despite efforts by the government, including the announcement of free train services during the festive period, economists believe these measures will have little impact on curbing the inflation surge.
Experts like Prof. Segun Ajibola, former President of the Chartered Institute of Bankers, and Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, argue that monetary interventions alone are insufficient. They emphasize that inflationary pressures require more effective fiscal policies, such as reducing production and transportation costs, improving the ease of doing business, and implementing targeted subsidies in areas like transportation, agriculture, and health.
Ajibola critiques the Central Bank of Nigeria’s approach, stating that the current monetary policies, including interest rate hikes, are ineffective in addressing the underlying issues driving inflation. Yusuf concurs, calling for a broader, long-term fiscal response to ease the burden on ordinary Nigerians and help reduce costs across sectors.
While the free train service is a step in the right direction, both experts agree that it is not enough to alleviate the broader economic challenges, highlighting the need for sustained and comprehensive policy changes to address the root causes of inflation.
