Undoubtedly, the rising surge in inflation rates is a global issue. The International Monetary Fund (IMF) defines Inflation as the rate of price increase over a given period. Inflation is typically a broad measure, such as the overall increase in prices or the cost of living in a country. In 2023 the global inflation rate was projected at 6.8 percent with forecasts sho wing a decline to 5.9 percent in 2024 and 4.5 percent in 2025. Evidence indicates a promising performance in the global inflation rate in 2024 slightly lower than its projected rate worldwide (Economic Outlook, 2024).Advanced economies are expected to return the inflation rate to their targets sooner, with a rate of 5.4 per cent in 2024 and further decreases projected for 2026 (3.73 %), 2027 (3.46%), 2028 (3.4%), and 2029 (3.37%) respectively (Statista, 2024).
At the time the World Bank attributed the global inflation surge to increasing oil prices and global demand shocks between 2020 and 2022, as the global pandemic severely impacted the economy. According to CNBC, “the current high inflation rate can be attributed to various factors, many stemming from the COVID-19 pandemic. Gapen attributes rising prices to three main causes: increases in household demand and supply-chain shortages due to the pandemic, the war in Ukraine and a strong labour market. This aligns with Federal Reserve chairman Jerome Powell’s statement where he identified supply chain issues shifts in consumer purchases and the tight labour market as primary drivers of inflation. The US Bureau of Labour Statistics, notes that as the labour market tightened in 2021 and 2022, core inflation rose due to increased job vacancies relative to unemployment. This ratio is used to measure wage pressures that ultimately affect the prices of goods and services as firms raise prices in response to workers seeking better pay.
Many low-income countries are disproportionately affected by global unrest, surging inflation, poor leadership and risky economic reform models. According to a Trading Economics report, South Sudan has the highest inflation rate at 107 per cent in 2024 distantly followed by Zimbabwe (57%) and Nigeria (34.6%) – all showing increased inflation rates compared to the previous record. In contrast, Senegal is the best-performing African country with an inflation rate of -0.2 per cent followed by Djibouti (0.5%) and Benin (0.6%) (Trading Economic, 2024).
While nearly 30 per cent of African countries perform similarly to high-income countries in terms of inflation rate, Nigeria, the most populous African country with a history of record-high GDP in Africa is arguably the third worst performer with an inflation rate of 34.6 per cent. The poor economic performance and rising inflation in Nigeria may partly reflect global trends, but economic reform policies have pushed more people into poverty and widened the gap between low-income households, shrinking the middle-income group. Many former middle-income earners in Nigeria now fall into the low-income category.
In December 2024, while some multinational companies celebrated record profits with lavish end-of-the-year parties, over three dozen children were feared dead in a stampede at a children’s funfair in the Ibadan area of Oyo State Nigeria. The poverty levels were evident as more than 5,000 children and their parents attended the event in hopes of receiving gifts arguably worth less than $10. In the same vein, a similar tragedy struck in Okija, in the Ihiala Local Government area of Anambra State where a stampede was reported during a palliative sharing event, tragically claiming the lives of many individuals on December 21, 2024. Within the same timeframe, at least 10 people have been reported dead due to stampedes in the Maitama area of Abuja during food distribution. In a season of joy when family and friends ought to be rejoicing, three tragic stampedes occurred in the West, East and Northern parts of Nigeria within a 48-72-hour period. To those who have lost loved ones, kindly accept my heartfelt sympathy for your loss, as I wish the departed souls to rest in peace.
The devaluation of the Naira and the removal of fuel subsidies have made it challenging for Nigerians to afford food and necessities. The benefit of the new Economy Reform Agenda seems to favour privileged individuals and those in the corridors of power leaving the masses struggling to survive. While social support and palliative distribution efforts are commendable, depriving people of basic needs and then offering minimal assistance is a disservice to humanity. Everyone should be empowered enough to take care of basic needs without having to resort to endangering their lives in the hopes of getting some food items.
It is crucial to urgently address the economic downturn through tight fiscal policies, reduced government spending, improved infrastructure, increased production, empowerment through basic investment opportunities, lower interest rates, increased support for Small and Medium Business Enterprises (SME), effective price controls, standard organization reforms, and a review of policies focusing on human capital development, capacity building, empowerment and poverty alleviation among other strategies.
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