Why is Inflation Rising in Nigeria while it has been Declining in other Parts of the World?
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A development economist who has been studying the Nigerian economy for over four decades argues that the factors that are pushing inflation downward in other parts of the world are moving in the opposite direction in Nigeria. No single factor can adequately explain rising inflation and escalating food costs in Nigeria. Nigeria’s unprecedented inflation is a case of multiple factors interacting to trigger cost-push inflation. If not addressed urgently, Nigeria’s rising inflation could result in “stagflation”. This is when the lack of robust economic growth is combined with hyperinflation. With high numbers of unemployed people who must purchase basic necessities at very high prices, Nigeria risks widespread protests, social tensions and political instability.