Central Bank Survey Shows Insecurity, Exchange Rate, Others Behind Persisting Inflation
Central Bank Survey Shows Insecurity, Exchange Rate, Others Behind Persisting Inflation
These and other issues were listed as major drivers of inflation in the Inflation Perception Report for April 2025.
The Central Bank of Nigeria’s (CBN) inflation perception survey has identified electricity, petrol prices, insecurity, and the exchange rate, among other factors, as responsible for the persistent inflation in the country.
These and other issues were listed as major drivers of inflation in the Inflation Perception Report for April 2025.
According to the document, energy sources (PMS, diesel, electricity, etc.), exchange rate, interest rate, transportation (road, flight, water, rail), insecurity, activities of middlemen, natural disasters, infrastructural challenges, and raw materials (input) were cited as key inflation drivers affecting both firms and households.
This development comes amid a period of growing inflation in the country.
Nigeria is already battling inflation, which has been said to significantly contribute to the increasing cost of living.
Earlier, data released by the National Bureau of Statistics (NBS) showed that inflation in the country rose to 24.23% as of March 2025.
This was contained in a document published by the NBS on inflation for March 2025.
“As of March 2025, the Headline inflation rate rose to 24.23% relative to the February 2025 Headline inflation rate of 23.18%.”
“Looking at the movement, the March 2025 Headline inflation rate showed an increase of 1.05% compared to the February 2025 Headline inflation rate,” the National Bureau of Statistics stated.
“Furthermore, on a month-on-month basis, the Headline inflation rate in March 2025 was 3.90%, which was 1.85% higher than the rate recorded in February 2025 (2.04%). This means that in March 2025, the rate of increase in the average price level was higher than the rate of increase in February 2025.”
Earlier, the President of the Nigerian Labour Congress (NLC), Joe Ajaero, lamented the impact of inflation on the ₦70,000 minimum wage approved by the Bola Tinubu-led government.
He had shared his thoughts while speaking at the quadrennial delegates’ conference of the Trade Union Congress (TUC) in Abuja.
While addressing attendees, Ajaero had stated that electricity tariffs and taxes far exceed the approved minimum wage.
“This is a period where the tax on your salaries is almost higher than the minimum wage increase on the salaries. It is a period we need to sit and reflect on our survival.”
“What are those things that affect us most? The social safety nets that are obtainable in some developed economies of the world, and we need to fight for them.”
He noted the pressing need to examine how the minimum wage is being implemented.
“Very important, the cost of living index. We need to look at it. How does it affect an average worker? How was the minimum wage the NLC, TUC, and others fought for implemented?”
He had also lamented the rising cost of living throughout the country.
“The landlords and transporters have taken it all. The electricity tariff is more than our minimum wage, and the tariff on telecom is increasing by the day.”
He added that there is a need “for the organised labour unions to stand united and review their relationships with Nigerians and players in the civil society space, to collectively fight the numerous issues affecting workers.”
“It is a period we need to reenact our relationship with not just the trade union movement, but our civil society allies and the Nigerian masses.“
