The Effect of Inflation on Nigerians Economy

Introduction

Things keep getting worst day after days. As new rulers ascend the seat of power they make all sorts of promises and people hope that with them things will turn out better, but at the end the reverse is the case. Everywhere in the world people are shouting due to rising inflation. Things keep getting worse and currently keep depreciating especially in Africa.

There are many factors Contributing to this hardship. many rulers has try to put a stop to this rising inflation but sadly most of them has failed. Inflation is tearing many economic apart and leaving people with only little to survive. In this article I will be talking about my country Nigeria and how the rate of inflation in my country is greatly increasing. I will also talk about the sad results of this inflation.

Inflation in Nigeria

Before the Covid-19 Pandemic Nigerians were managing life. In average most families eat two times in day. Then during the pandemic everything fall apart. My country Lock down without giving people food and leaving no means for them to feed. The rate of people who died in Nigeria during COVID-19 surpass that which was killed by the virus. The world was struggling with covid-19 pandemic while my country was struggling with hunger virus.

Many families was reduced to nothing while hungry and depression killed many. Sadly I lost my beloved dad right after the lockdown was over. You can imagine locking down businesses for two good years without the government support. We only hear in tv and radio that the government is sharing food but we never see any. It was all politics.

Today, the world now has the Covid-19 Pandemic under control. Nigeria has an Inflation rate of 13.25% during the COVID-19 and today inflation has claim so hight to 29.90% making it more than double of that of covid-19. It is true that we are not under lockdown like during the COVID-19 pandemic but Nigerians are suffering more than they do during the COVID-19 pandemic.

In 2020 a bag of rice was sold for only 15,000 naira that is for $10 but now Nigerians are buying a bag of rice for 92,000 naira ($61.3). In 2020 dollar was 550 naira while currently dollar to naira is 1,500 naira. The price of food in the market has tripled between 2020 to now. I sachet of Super Pack indomie noodle in 2020 was 150 naira while today it is being sold at 500 naira. How are Nigerians surviving?

Causes of this Inflation

There are many factors contributing to the inflation in Nigeria.

• Wrongful Remover of Fuel Subsidy: Subsidizing fuel price can be contribute to inflation in a significant way, but wrongfully removing fuel subsidy can do greater harm. Recently fuel subsidy was removed in Nigeria and this has cause the country to suffer. The remover of fuel subsidy in Nigeria has caused different companies in the country using electric light for production to greatly increase the price of their products due to the increase in fuel price.

Civil servant are still paid the same amount not minding that fuel subsidy has been removed. Minimum wage in Nigeria is still 30,000 ($20). So instead of the remover of fuel subsidy to help build the country it is causing more hardship. Even farmers has increase the price of their produce in the name of high fuel price.

• Excess Budgeting: Due to excess budgeting the country has gone into borrowing. Borrowing in order to fullfil all in the budget while in essence they are selling the country into slavery. This is another thing fueling inflation in the country.

In conclusion, Nigeria is going through a hard time due to mismanagement and gride by headless and selfish leaders. The country's inflation rate keeps going high and there seems to be no hope.

Credit

Thumbnail gotten from Pixabay

Second picture gotten from Pixabay

Posted Using InLeo Alpha

Posted Using InLeo Alpha