Inflation Will push 15 million Nigerians into poverty in two years –Report

Inflation Will push 15 million Nigerians into poverty in two years –Report

The World Bank has said that inflation shock is projected to push about 15 million more Nigerians into poverty between 2020 and 2022, aso Naija reports.

The Washington-based bank said this in its latest Nigeria Development Update report, titled, ‘The Continuing Urgency of Business Unusual’.

The report read in part, “Overall, the ‘inflation shock’ is estimated to result in about 15 million more Nigerians living in poverty between 2020 and 2022.”

The lending bank stressed the need for reducing the rising rate of inflation, which is pushing millions of Nigerians into poverty.

Although the World Bank says inflation in 2022 is projected to be 15.5 per cent, Nigeria’s inflation as of May this year is 17.71 per cent, which is higher than the World Bank’s projection.

The lending bank further said that Nigeria has one of the highest inflation rates in the world.

According to the bank, inflationary pressures in the country are driven by certain policy distortions.

• The bank said, “Inflationary pressures were compounded by policy distortions, in particular (i) lack of flexible foreign exchange management, (ii) trade restrictions, and (iii) conflicting monetary policy goals.” It further disclosed that global supply shocks exacerbated inflationary pressures and increased the urgency.

Aside from the policy distortions, the COVID-19 pandemic and the war in Ukraine have contributed to rising inflation.

It was also stated that the financing of the fiscal deficit and trade restrictions by the Central Bank of Nigeria contributes to fuelling inflationary pressures, and Nigeria will have one of the highest inflation rates in Sub-Saharan Africa in 2022.

The bank also said that poverty might be becoming entrenched in certain Nigerian households, particularly in rural areas in the north.

Source: The Punch