Nigeria's Food Inflation At Crisis Point, Reaches 11-Year High

In January 2021, the country's food inflation rose to its highest level since 2008, making it the highest in over 11 years. Analysts blame the rise on the Covid-19 pandemic, dollar shortages, and lingering restrictions on imports of certain food items despite the re-opening of the borders. Another factor is the incessant attacks on farmers, which has caused shortages of goods. Nigeria is facing its second recession in five years, triggered by a crash in oil prices that has hammered state revenue, creating large financing needs and weakening the naira currency. The International Monetary Fund is urging Nigeria to phase out the central bank's financing of the government deficit to reduce inflation.

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Fresh spices and fruits on display at a market in Abuja, Nigeria

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