Nigeria’s Inflation Rate Is Better Compared To Most African Nations – CBN

The Central Bank of Nigeria has come out to say that the country’s inflation rate is better compared to most African nations.

The acting Governor of the CBN, Folashodun Shonubi recently had his say via a press statement, and Nigerians have been reacting.

According to him, the reality is that there are several contributing factors to the global inflation rise, including the war between Russia and Ukraine, as the two countries are very important commodity exporters.

CBN, however, added that the recent figures prove that Nigeria is not doing as badly as people make it out to be.

His words, “Now, when you come down to Africa and neighbouring Ghana, At the last count inflation there is at 42.5 per cent. We have it at 31 per cent in Ethiopia and 36 per cent in Egypt.”

“So, in our dear country, we are at 22.8 per cent. When you hear these figures, it tells you that we’re not doing as badly but all of this has also affected economic growth itself. Today, the IMF has revised growth downwards from 3.5% per cent to three per cent this year and 3 per cent next year.”

“For Sub-Saharan Africa, they expect growth to moderate from 4.1 per cent last year to 3.5 per cent this year, but to take back again to just slightly over 4 v next year. In Nigeria they expect us to do 3.2 per cent this year.”

“We know that the war between Russia and Ukraine is contributing a lot as the two countries are very important commodity exporters. Both of them account for 30 per cent of sunflower exports in the world. So, when such a region is at war, you know what will happen to food prices worldwide.”

“We know too that there’s been a shift in demand from goods to services; services are usually more expensive. There’s also the disruption going on in China today with their zero COVID policy, power cuts as we know, and then the switch from coal to more renewable energy has also meant that power is not as valuable as it used to be.”

“We see too in China today some correction in the property market. A lot of Chinese don’t have quite the kind of investment vehicles that say the average American has.”

“A lot of them have put their savings into property. But that has meant an oversupply of property in China today. There are 65 million empty apartments in China.”

“That’s enough to take the entire population of France. So that correction is also leading to supply chain disruptions.”