Inflation in Nigeria rose to double digit of 15.6 percent, a six-year high record in May 2016 according to the National Bureau of Statistics this Tuesday.
The rise in the headline consumer price index, which measures inflation, accelerated by 1.9 points from its April year-on-year level of 13.7 percent, the NBS said in statement.
The rate is the highest since February 2010, when inflation also stood at 15.6 percent, according to the Central Bank of Nigeria (CBN). Attributes to this is “an overall increase in general price level across the economy”, which has been battered by the global fall in oil prices since mid-2014, the NBS said in statement.
Consumables continued to be more expensive, with overall prices rising 14.9 percent year-on-year from 13.2 percent in April. Imported food was up 18.6 percent, indicating persistent difficulties for importers to source foreign exchange because of the weak naira. The CBN has pegged the naira at 199 to the US dollar since March last year but has come under pressure to devalue the currency further.
On Tuesday, President Muhammadu Buhari said he backed the move to “greater flexibility” in forex policy, calling it “a down payment on our people’s ability to succeed”. He is keen and looking for creative modalities to reduce Nigeria’s dependency on oil, which normally accounts for 70 percent of government revenue.