The World Bank has said that the Nigerian federal government has taken no concerted action to curb inflation in 2021, despite the inflationary shock pushing some eight million Nigerians below the poverty line. This was stated by the Washington-based bank in the latest edition of its “Nigeria Development Update” Report 2021.
He said: ‘Double-digit inflation rates are depressing economic activity and deepening poverty. Nigerians below the poverty line. “We have revised our inflation forecast upwards from our June projection because (i) the inflation rate is declining more slowly than initially expected and (ii) in 2021 the government has not taken action concerted efforts to curb inflation.
The bank warned that without decisive action, the average inflation rate would not reach the CBN’s single-digit target by the end of 2022. It said: ” Without decisive action, the average inflation rate for 2021 will exceed that of 2020 and is unlikely to approach the CBN’s target range of 6-9% by the end of 2022″.
The inflation rate is not fallen to 9% since 2014, but in a hypothetical scenario where the inflation rate would have been close to the CBN’s 9% target in 2020 and 2021, the average level of consumption in Nigeria today would have been at least 15 percent higher, he predicted that the country’s inflation rate would drop to single digits in 2022, with the full implementation of e of its recent policies aimed at reviving several sectors of the economy. However, a US-based magazine, Global Finance, agreed with the World Bank, saying the CBN had failed to curb rising inflation and prevent the naira from sliding against the dollar. .The World Bank stated that Nigeria could have one of the highest inflation rates around the world in 2022, with increased prices that reduce the well-being of Nigerian families.