consumer crunch

Nigeria: Headline inflation and rising oil prices puts pressure on local business

By Ruth Olurounbi

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Posted on March 28, 2022 13:16

Nigeria Fuel Shortage
People buy fuel at a petrol station in Lagos, Nigeria, Friday, Feb. 18, 2022. AP Photo/Sunday Alamba)

Hikes in the price of diesel is filtering through to the rest of Nigeria’s economy, as transporters and manufacturers pass the price on to consumers.

Nigeria’s headline inflation rose by 10bps to 15.70% in February after a marginal decline in January, with the monthly price index rising from 0.16% to 1.63% due to the increase in diesel prices.

The cost of diesel, the major fuel for haulage, jumped by more than 150% within a three-month period, between January and March. Nigeria, an oil-dependent economy has been experiencing fuel shortages since the beginning of February.

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