CBN says Nigeria's inflation crisis 'not so bad' compared to other African nations

<span>The annual inflation rate in Nigeria rose for the fourth month to a near 18-year high of 22.41% in May 2023, up from 22.22% in the prior month and matching market estimates. Photo: Lagos City, Nigeria</span>, <p>Amidst rising inflation, the Central Bank of Nigeria (CBN) offers perspective on Nigeria's economic performance relative to other African nations.</p>, <p>Acting CBN Governor Folashodun Shonubi, speaking at the 2023 Zenith Bank International Trade Seminar, highlights how Nigeria fares in the face of global challenges.</p>, <p>Shonubi referenced specific inflation rates from around the world, underscoring the global nature of the issue.</p>, <p>"Now, when you come down to Africa and neighbouring Ghana, at the last count, inflation there is at 42.5%. We have it at 31% in Ethiopia and 36% in Egypt," he said.</p>, <p>He continued, "So, in our dear country, we are at 22.8%. When you hear these figures, it tells you that we’re not doing as badly, but all of this has also affected economic growth itself."</p>, <p>The CBN Governor went on to emphasise the broader context, including global challenges influencing inflation rates.</p>, <p>READ: Top 10 African countries with the largest population mid-way into 2023</p>, <p>"Today, the IMF has revised growth downwards from 3.5% to 3% this year and 3% next year. For Sub-Saharan Africa, they expect growth to moderate from 4.1% last year to 3.5% this year, but to return to just slightly over 4% next year. In Nigeria, they expect us to do 3.2% this year," he explained.</p>, <p>While the CBN's stance attempts to provide perspective on Nigeria's inflation situation, critics argue that the complex realities faced by Nigerian citizens cannot be brushed aside.</p>, <p>In his closing statement, Shonubi emphasized the importance of non-oil exports and stressed the need for Nigeria to accelerate the growth of its non-oil exports to GDP ratio for a more robust economy.</p>