Nigeria’s inflation rate rose to 24.2% in March from 23.2% in February, the first increase since inflation data was rebased in January, the National Bureau of Statistics reported.
The jump comes before the rest of world trade tensions triggered by U.S. President Donald Trump’s new tariffs. Oil — Nigeria’s main export — has dropped to $65 a barrel, below the target of the government at $75, and the naira has depreciated by 4.2% against the dollar, which inflated the price of imports.
As a measure of steadying the currency, Central Bank of Nigeria (CBN) injected over $650 million into the foreign exchange market so far this month. Both rising inflation, plus currency stress, will feature highly in talks when the CBN’s monetary policy committee convenes for the first time on May 19–20, where interest rates are to remain firm at 27.5%.
Food inflation eased to 21.8%, but core inflation rose to 24.4%, showing more price pressure. With the planting season underway and food supplies tight, higher prices may persist.
Nigeria has tough months ahead as domestic troubles and global shocks meet — with policymakers having little space to maneuver.
