Experts Blame CBN as Rising Inflation Pushes More Nigerians into Poverty

Experts Blame CBN as Rising Inflation Pushes More Nigerians into Poverty

  • The Central Bank of Nigeria has been blamed for taking key decisions to help the federal government
  • This decision, according to experts, is one of the key drivers of inflation, which is now a 17-year-high of 19.6%
  • The rising inflation is expected to push more Nigerians into poverty as earnings remain stagnant

On Monday, 15 August 2022, the National Bureau of Statistics revealed that Nigeria's inflation rate rose to 19.6 per cent in July 2022.

Data from the Consumer Price Index (CPI) report for July 2022 is the highest level of inflation rate since 2005, 17 years ago.

The high inflation rate has got many experts expressing worries, fears and opinions about why the cost of living is becoming too expensive.

Experts speak on inflation
Inflation rate movement in the last year Credit: NBS
Source: Facebook

Details of NBS inflation report

  • Inflation rate: 19.6%
  • Rural inflation: 19.22%
  • Urban Inflation rate: 20.9%
  • Food inflation rate: 22.03%

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Experts react to inflation rate figures

Speaking to the National President Association of Senior Civil Servants of Nigeria, Tommy Okon explained to that civil servants are most hit by the rising inflation because their salaries are fixed.

He said the purchasing power has become so weak that most families can hardly buy a loaf of bread.

He warned that situations like this lead to a breakdown of law and order and called for urgent action from the authorities.

Also when contacted, Dr. Muda Yusuf the Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE), and former Director-General of the Lagos Chamber of Commerce and Industry (LCCI), lamented that the heightened inflationary pressure remained troubling, with drivers abating.

According to him, in many cases, increases in production costs cannot be transferred to consumers. The implication is that producers are also taking a hit.

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He explained:

"Where the product demand is elastic, this is more obvious. Consumers may easily live without such products."
"The CBN's rapid financing of the budget deficit is a major inflation driver. The financing of the budget deficit has reached unsettling levels, which has significant effects on the money supply and the rate of inflation,"
"The CBN uses strong money, which is highly inflationary, to finance the deficit. It is a tax on inflation."

Mr Macaroni laments hard life in Nigeria previously reported that the not-so-friendly economy got to Nigerian celebrities voicing how they feel.

Popular comedian Mr. Macaroni voiced out about the calls, saying that he seems to get a lot of people asking him for giveaways.

The comedian warned that anyone requesting a gift from him during this time might be out for his blood. Nigerians responded to his message in various ways.

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