Nigeria’s energy inflation rate rose to 17.9% in one year, according to the latest report by the National Bureau of Statistics (NBS).
Energy inflation was 11.5% in January 2022 but rose to 17.9% in January 2023. Meanwhile, in December 2022, the energy inflation rate was 17.5%, showing that Nigerians have incurred higher energy costs as of January 2023.
In the NBS inflation report released on Wednesday, it was revealed that Nigeria’s core inflation during the month under review (i.e., January 2023) was driven by higher prices of gas, liquid fuel, passenger transport by air, vehicles spare parts, fuels, and lubricants for personal transport equipment, and solid fuels.
More inflation details: Nigeria’s core inflation, which excludes the prices of volatile agricultural produce, stood at 19.16% in January 2023; up by 5.29% when compared to the 13.87% recorded in January 2022.
- However, on a month-on-month basis, the core inflation rate was 1.82% in January 2023, up by 0.49% points from the 1.33% recorded in December 2022. The average twelve-month annual inflation rate was 16.52% for the twelve-month ending January 2023; this was 3.19% points higher than the 13.33% recorded in January 2022.
- Nairametrics had previously reported that the country’s inflation rate rose to 21.82%, which represents a 0.47% increase when compared to the 21.34% recorded in the previous month.
Causes of increased energy costs: Since the fourth quarter of 2022, Nigerians have experienced a lingering fuel crisis, which escalated in January 2023. Many filling stations across the country are selling the commodity at exorbitant prices, ranging from N250 per litre to about N500 per litre across states.
Nairametrics reported that fuel was sold for N450 per litre in Uyo, Akwa Ibom state, N300 per litre in Benin, Edo state, N350 per litre in Calabar, Cross River state, and as high as N500 per litre in Port Harcourt, Rivers state.
This situation further contributed to increased transportation fares for road and air users. According to a January 2023 report from Nairametrics, one-way airfare charges increased from an average of N38,000 to over N70,000 per person between December 2021 to December 2022.
For the record: On a year-on-year basis, core inflation rose the highest in Bauchi at 24.79%, Ondo at 24.54% and Anambra at 24.51%. Meanwhile, core inflation slowed in Jigawa at 19.09%, Borno at 19.62% and Sokoto at 19.90%.
On a month-on-month basis, core inflation rose the highest in Lagos at 2.91%, Taraba at 2.84% and Ondo at 2.68%. Meanwhile, core inflation slowed in Yobe at 0.54%, Jigawa at 0.73% and Oyo at 0.87%.