The ongoing energy crisis is heavily impacting Nigeria's transport economy.
Nigeria’s transport inflation has risen to its highest point in 15 years. The transport inflation rose to 18.74% in the month of September 2021, representing a 50-basis points increase compared to the 18.24% recorded in the previous month.
This information was disclosed in the recently released Consumer Price Index (CPI) report by the National Bureau of Statistics (NBS).
A rise in energy costs spurred the current increase in the transport index. Prices for energy sources such as diesel, liquid fuel, and solid fuel, have increased.
The ban on motorcycles in states like Lagos created a scarcity of quick transport options, which inadvertently caused the transport inflation index to soar.
Airfares also went up 200% within the same period, with a one-way ticket costing a minimum of N70,000.
The CPI report showed that Nigeria’s headline inflation rate rose to a 17-year high of 20.77% in September 2022, driven by increases in the core and food index.
The rising inflation rate is coming despite the nation’s attempts to curb the issue. Last month, the Central Bank of Nigeria had, in an unpopular move, increased the national interest rate. Read story here.
The CBN disclosed that this was a measure to balance the country’s rising inflation, even though some financial experts disagreed.
Regardless of CBN’s initiative, the cost of basic amenities is still increasing, and living costs have become more expensive.
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