This year, it was reported that the inflation rate in Nigeria increased to about 17.33%. This figure is the highest it has risen in four years. In all my search, I was not certain as to why it increased to that level but the recent comments by Governor of Edo state, Governor Godwin Obaseki has suggested to me the reason why it was like that.
The prices of goods and service and even electricity tariffs was increasing in the country which is as a result inflation. It was becoming unbearable for a common man to survive as even an item like Sachet Tomato which was sold for N50 is now being sold for N120 and in some places N150.
Inflation in a lay man terms is a situation where there is too many money in the economic systems and as a result if that, too many money will chase few goods. I was wondering how there was too many many in the economy and then Obaseki revelation gave me my answer.
Obaseki, while warning that here would soon be no crude oil revenue for Nigeria to spend, said that the federal government of Nigeria printed extra N60 billion for states to share in March. He shared his concerns over the habitual borrowing system of the government saying if it continues like this, the value of the naira will further reduce.
As part of his statement as quoted by Peoples Gazette, I was draw to one particular line of words which may in turn result to future increase in inflation rate. He said "In another year or so, where will we find this money that we go to Abuja to share every month? Last month, we got FAAC for March. The federal government printed an additional ₦50 to ₦60 billion to top-up for us to share,”
“We say remove subsidy, they say no. This April, next week again, we will go to Abuja and share. By the end of this year, the total borrowing is going to be in excess of ₦15 to ₦16 trillion"
This particular line shocked me; "This April, next week again, we will go to Abuja and share.".
If this should continue, we may witness further increase in inflation rate.
Content created and supplied by: UnikJay (via Opera News )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform See More