Impact Of Inflation On The Nigeria Economy

Most countries irrespective of its advancement have its own share of socio-economic problems. One of the most prevalent socio-economic problems is “inflation”. 

The term “inflation” is as old as mankind in more precise description inflation can be defined as the persistent rise in the price of good and services and measurement depreciation in the value of money.

A careful survey of the situation in Nigeria shows that this phenomenon is prevalent. Nigeria is undergoing a severe economic recession that he engendered hardship as a result of highly inflationary conditions. The prices of the essential commodities are no longer within the reach of the poor masses. There was a period when a tin of peak milk used to cost 35k but now the price has sky rocketed to N60.00.

Before they change the naira and kobo, 10 cups of Garry which was measured in middies i.e. (two or one hundred) use to cost one skilling and that was around 1971, but now N200 (two naira) will not purchase ever one cup of Garry. This shows an unprecedented deteriorating economic condition. The purchasing power of money has fallen beyond anticipation and the brunt fall on the poor masses.

Although present administration has recently declared a state of emergency for our economy, this has been the case, even before the military government of 1983-1985 assumed power. We must describe our problem to the power greed of some people and adopting alien political system and in putting people of dubtion characters at the helm of affairs.

The index of the degree of development of an economy is the living standard of the masses, in Nigeria and standard of living is very low. A vast majority of the masses can hardly afford the bearer necessities for subsistence. The malnutrition resulting from poor diets make people vulnerable to the attack of various diseases. In the diseases condition accessioned by hardship resulting from the scarcity of essential commodities and services, production in all sheers of human endeavor is affected inimically. This is why inflation is known as system of underdevelopment. The economy of any country is like an electrical circuit of which anything happens to any of the sectors. Automatically it will after the other.

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