A significant majority of Nigerian households and businesses believe that the current inflation rate is high.
This is according to the Central Bank of Nigeria’s (CBN) Inflation Expectations Report for December 2024.
The report reveals that 83.5% of households and 80.6% of businesses perceive inflation to be at an elevated level, reflecting the persistent economic pressures faced by consumers and enterprises alike.
The findings highlight growing concerns over the rising cost of living and doing business in Nigeria.
The National Bureau of Statistics (NBS) reports that the headline inflation rate in Nigeria reached 34.80% in December 2024.
The survey indicates that perceptions of inflation vary across different business sizes:
Among these, small businesses recorded the highest perception of inflation, emphasizing the disproportionate impact of rising prices on SMEs, which form the backbone of Nigeria’s economy.
The report also sheds light on how inflation is perceived across various income brackets. Notably, 88.2% of households earning between N150,001 and N200,000 per month believe that inflation is high.
This demonstrates the strain on middle-income earners, who are increasingly finding it difficult to afford essential goods and services due to soaring prices.
Lower-income households are even more vulnerable to inflationary pressures, as food and transportation costs make up a significant portion of their expenses.
The widespread perception of high inflation aligns with Nigeria’s persistent inflationary trends. The inflation rate has been driven by several key factors, including: