IPC Justice, a non-governmental and non-profit organization committed to restructuring Nigeria, investigating corruption in politics and judiciary, and holding government accountable, has condemned the inflation rate reported by Nigeria’s National Bureau of Statistics (NBS) as fake.
IPC Justice made the disclosure in a press release dated August 15, 2023, following the report by NBS published by News Band on Tuesday.
According to the report, Nigeria’s inflation hit 24.08% in July 2023 from 22.79% recorded in June 2023, based on data released by NBS.
The report also stated that food Inflation rose to 26.98% in July 2023 from 25.25% in June 2023, while urban inflation was 25.83%, with rural inflation reaching 22.49%.
The July 2023 report further stated that headline inflation rate showed an increase of 1.29% points when compared to June 2023 headline inflation rate, adding that on a year-on-year basis, the headline inflation rate was 4.44% points higher compared to the rate recorded in July 2022, which was 19.64%.
Read the report below:
Inflation hits 24.08% in July 2023 from 22.79% in June 2023 — NBS
Reacting to NBS data, however, IPC Justice insisted that the inflation rate reported by NBS Nigeria is not accurate.
It stated the removal of fuel subsidy and the devaluation of the naira had significant impact on the cost of living in Nigeria, adding that these factors were not adequately reflected in the figures.
It also noted that the price of petrol has tripled since June 2023, which was ₦265 per liter but sold at ₦617 per liter in July, a 237% increase in the price of petrol.
Also, IPC Justice lamented the significant impact on the devaluation of the naira on the cost of living in the country.
The Naira had sold at ₦460 per dollar in June but skyrocketed in July to ₦950 per dollar, a 100% devaluation of the naira, it stressed.
The organisation, therefore, argued that the combination of the fuel subsidy removal and the devaluation of the naira had a devastating impact on the cost of living in Nigeria which did not reflect in the NBS report.
Raed the statement below:
“The inflation rate reported by NBS Nigeria is not accurate.
“The removal of fuel subsidy and the devaluation of the naira have had a significant impact on the cost of living in Nigeria, and these factors have not been adequately reflected in the inflation figures.
“According to the NBS Nigeria, the inflation rate in July 2023 was 24.08%. However, this number does not reflect the fact that the price of petrol has tripled since June 2023.
“The price of petrol in June 2023 was ₦265 per liter. In July 2023, the price of petrol increased to ₦617 per liter. This is a 237% increase in the price of petrol.
“The devaluation of the naira has also had a significant impact on the cost of living in Nigeria.
“In June 2023, the exchange rate between the naira and the dollar was ₦460 per dollar. In July 2023, the exchange rate between the naira and the dollar increased to ₦950 per dollar.
This is a 100% devaluation of the naira!
“The combination of the fuel subsidy removal and the devaluation of the naira has had a devastating impact on the cost of living in Nigeria.
“The inflation rate reported by NBS Nigeria does not accurately reflect this reality.”
IPC Justice, therefore, urged NBS Nigeria to revise their inflation figures to reflect the true cost of living in Nigeria, adding that the people of Nigeria deserve to know the truth about the state of the economy.
“The increase in the price of petrol has had a ripple effect on the cost of transportation and goods and services. This has led to a significant increase in the cost of living for Nigerians,” said IPC Justice.
it also urged the Nigerian government to take steps to address the high inflation rate by increasing the minimum wage, providing subsidies to the poor, and investing in infrastructure.
It further asked the government to address the root causes of inflation, such as corruption and inefficiency in the public sector.
“It is important to remember that inflation is not just a number. It has a real impact on the lives of ordinary Nigerians.
“It makes it difficult for people to afford basic necessities, such as food, shelter, and healthcare. It also erodes the value of savings and investments.
“The Nigerian government needs to take action to address the high inflation rate. This is a matter of urgency. The people of Nigeria cannot afford to wait any longer,” concluded IPC Justice. Read more.
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