Opinion
Curbing Inflation In Nigeria
Inflation is defined as a general rise in the prices of
goods and services in a particular country resulting in the fall in the value of her money. This means that the currency is worth less than it used to be. Prices of goods and services will always go up or down, but if prices of most things are rising, that is inflation. That is when a naria or dollar can then no longer buy as much as it could in the past.
Recently, analysts at Financial Derivation Company Limited (FDC) projected a headline inflation of 9.5 per cent for December 2015 in Nigeria. This is marginally higher than the 9.4 per cent recorded in November, which ranks Nigeria as the country with the 12th highest inflation rate in Africa.
According to the analysts, the 0.1 per cent increase estimated in the consumer price index is consistent with the moderate uptick recorded between November and December in both 2013 and 2014, the highest level since February 2013. In a note, the analysts said, “Inflation rate increased nine times out of the twelve months in 2015. Though the inflation rate may not be totally transient, a consistent, but transient trend becomes self-fulfilling over time.
They stated that the major factors contributing towards the rising price level in 2015 are cost-push in nature. These factors include exchange rate pressure, intermittent fuel scarcity, policy uncertainty and trade restrictions. In December, the naira depreciated significantly in the parallel market to an all-time low of N280 per dollar and being compounded now with shortages of imported products.
Inflation hits different people differently but if everyone could simply adjust to such changes each year, inflation would not be a problem. However, it bites harder on persons on a fixed income such as old persons living on pensions, when other people are making a great deal of money from inflation. Inflation occurs when consumers and governments have a large amount of money to spend, relative to the supply of things they want to buy, which is known as “excess demand”, meaning that potential purchasers bid against each other for scarce goods. This drives or pushes up the price of goods.
In the case of Nigeria, the problem seems to be the lack of the potential and political will to implement economic policies. Those in the position to make our economic policies. Those in the position to make our economic policies functional are ill-equipped and so cannot identify the many different factors that can reposition the economy from the direction of inflation.
Some frequent causes of inflation are deficit spending by governments-if a government spends more than it takes in taxes, this puts extra money to work without taking a corresponding amount out of private consumption through taxes. In this way, the “money to spend” side of the inflationary balance is raised. Another cause is a shortage in important goods-bad storms resulting in a low harvest of grains can cause inflation by reducing the “supply of things” side of the inflationary balance.
Prolonged strike in a major industry and a cut in production of oil in order to force prices up reduce the supply of things and cause inflation. Monopolies, which allow one company or a group of companies to raise prices without having to worry that their customers will shift to another provider, also contribute to inflation. Similarly, trade restrictions between countries can give full or partial monopolies to local providers, since people cannot easily buy from producers in another country, and drive prices up.
Modern economies usually have some inflation and societies are not badly disturbed by low, regular inflation of less than 5 per cent a year. But when inflation gets higher than that, it has two bad effects: (1) it churns the society up, accelerating the rise and fall of people’s circumstances; social change accelerates, creating big winners and big losers in the process and (2) it diverts a good deal of people’s energy into figuring out how to circumvent the effects of inflation, rather than how to invest productively.
High levels of inflation cause terrible hardship and destroy everyone’s savings as effectively as if every bank in the country had failed. There was a remarkable worldwide development in the 1920s when most countries of the world witnessed a drastic drop in inflation. There were a variety of causes for the drop. A number of countries reduced their government’s budget deficits which helped to cut inflation. Also, commodities such as oil remained reasonably cheap.
Another most important reason was that with the end of Cold War and with various initiatives to make world trade more free and open, companies faced worldwide competition, making it difficult for them to raise prices. Many countries at various times have run high levels of inflation in the past. For example, in 1994, China’s inflation rate was 21 per cent, Venezuea’s was 69 per cent, Turkey, 108 per cent, and Russia’s was 150 per cent and that of Brazil was 31.73 per cent. These levels of inflation caused terrible hardships to the people of the countries.
In later years, disinflation almost took on a life of its own, sweeping all countries along. Whatever the cause was, inflation in the United States was down to 2.1 per cent in mid-2003, a relatively low level compared with the years before. Of the countries mentioned, many have reduced inflation a great deal as China’s rate was down to 0.5 per cent, Brazil’s to 15.4 per cent and Russia’s to 14.0 per cent, while Turkey and Venezuela remained at 27.4 per cent and 31.9 per cent respectively.
Controlling inflation is a basic requirement for economic and social respect in countries. Being unable to find solution to inflation challenges has been a bane of Nigerian government, which has robbed it one of the most claims to economic standing. A country with high inflationary index is a society without plans and with wasted energy. The economy would benefit and the people would prosper if inflation is reduced. This would be achieved when there are more manufactured goods, more food, more available medical care, more of everything and diversification from oil as the only economic or revenue earning resource and source.
Inflation occurs when goods are in short supply and money is readily available, so that many buyers chase few goods and drive prices high by bidding against each other. So, the Nigerian government should stand on its feet in ensuring that the current high level of inflation is reduced. It is unfortunate that the country has no clear and simple tool to combat inflation and other economic impediments. Something must be done now.
Shedie Okpara
The political atmosphere in Rivers State has been anything but calm in 2025. Yet, a rare moment of unity was witnessed on Saturday, June 28, when Governor Siminalayi Fubara and Minister of the Federal Capital Territory, Chief Nyesom Wike, appeared side by side at the funeral of Elder Temple Omezurike Onuoha, Wike’s late uncle. What could have passed for a routine condolence visit evolved into a significant political statement—a symbolic show of reconciliation in a state bruised by deep political strife.
The funeral, attended by dignitaries from across the nation, was more than a moment of shared grief. It became the public reflection of a private peace accord reached earlier at the Presidential Villa in Abuja. There, President Bola Ahmed Tinubu brought together Governor Fubara, Minister Wike, the suspended Speaker of the Rivers State House of Assembly, Martin Amaewhule, and other lawmakers to chart a new path forward.
For Rivers people, that truce is a beacon of hope. But they are not content with photo opportunities and promises. What they demand now is the immediate lifting of the state of emergency declared in March 2025, and the unconditional reinstatement of Governor Fubara, Deputy Governor Dr. Ngozi Odu, and all suspended lawmakers. They insist on the restoration of their democratic mandate.
President Tinubu’s decision to suspend the entire structure of Rivers State’s elected leadership and appoint a sole administrator was a drastic response to a deepening political crisis. While it may have prevented a complete breakdown in governance, it also robbed the people of their voice. That silence must now end.
The administrator, retired naval chief Ibok-Ette Ibas, has managed a caretaker role. But Rivers State cannot thrive under unelected stewardship. Democracy must return—not partially, not symbolically, but fully. President Tinubu has to ensure that the people’s will, expressed through the ballot, is restored in word and deed.
Governor Fubara, who will complete his six-month suspension by September, was elected to serve the people of Rivers, not to be sidelined by political intrigues. His return should not be ceremonial. It should come with the full powers and authority vested in him by the constitution and the mandate of Rivers citizens.
The people’s frustration is understandable. At the heart of the political crisis was a power tussle between loyalists of Fubara and those of Wike. Institutions, particularly the State House of Assembly, became battlegrounds. Attempts were made to impeach Fubara. The situation deteriorated into a full-blown crisis, and governance was nearly brought to its knees.
But the tide must now turn. With the Senate’s approval of a record ?1.485 trillion budget for Rivers State for 2025, a new opportunity has emerged. This budget is not just a fiscal document—it is a blueprint for transformation, allocating ?1.077 trillion for capital projects alone. Yet, without the governor’s reinstatement, its execution remains in doubt.
It is Governor Fubara, and only him, who possesses the people’s mandate to execute this ambitious budget. It is time for him to return to duty with vigor, responsibility, and a renewed sense of urgency. The people expect delivery—on roads, hospitals, schools, and job creation.
Rivers civil servants, recovering from neglect and under appreciation, should also continue to be a top priority. Fubara should continue to ensure timely payment of salaries, address pension issues, and create a more effective, motivated public workforce. This is how governance becomes real in people’s lives.
The “Rivers First” mantra with which Fubara campaigned is now being tested. That slogan should become policy. It must inform every appointment, every contract, every budget decision, and every reform. It must reflect the needs and aspirations of the ordinary Rivers person—not political patrons or vested interests.
Beyond infrastructure and administration, political healing is essential. Governor Fubara and Minister Wike must go beyond temporary peace. They should actively unite their camps and followers to form one strong political family. The future of Rivers cannot be built on division.
Political appointments, both at the Federal and State levels, must reflect a spirit of fairness, tolerance, and inclusivity. The days of political vendettas and exclusive lists must end. Every ethnic group, every gender, and every generation must feel included in the new Rivers project.
Rivers is too diverse to be governed by one faction. Lasting peace can only be built on concessions, maturity, and equity. The people are watching to see if the peace deal will lead to deeper understanding or simply paper over cracks in an already fragile political arrangement.
Wike, now a national figure as Minister of the FCT, has a responsibility to rise above the local fray and support the development of Rivers State. His influence should bring federal attention and investment to the state, not political interference or division.
Likewise, Fubara should lead with restraint, humility, and a focus on service delivery. His return should not be marked by revenge or political purges but by inclusive leadership that welcomes even former adversaries into the process of rebuilding the state.
“The people are no longer interested in power struggles. They want light in their streets, drugs in their hospitals, teachers in their classrooms, and jobs for their children. The politics of ego and entitlement have to give way to governance with purpose.
The appearance of both leaders at the funeral was a glimpse of what unity could look like. That moment should now evolve into a movement-one that prioritizes Rivers State over every personal ambition. Let it be the beginning of true reconciliation and progress.
As September draws near, the Federal government should act decisively to end the state of emergency and reinstate all suspended officials. Rivers State must return to constitutional order and normal democratic processes. This is the minimum requirement of good governance.
The crisis in Rivers has dragged on for too long. The truce is a step forward, but much more is needed. Reinstating Governor Fubara, implementing the ?1.485 trillion budget, and uniting political factions are now the urgent tasks ahead. Rivers people have suffered enough. It is time to restore leadership, rebuild trust, and finally put Rivers first.
By: Amieyeofori Ibim
Amieyeofori Ibim is former Editor of The Tide Newspapers, political analyst and public affairs commentator
Do the Fulani herdsmen have an expansionists agenda, like their progenitor, Uthman Dan Fodio? Why are they everywhere even the remotest part of other areas in Nigeria harassing, maiming, raping and killing the owners of the land?”
In a swift reaction, The Movement for the Survival of the Ogoni People (MOSOP) decried and strongly condemned the invasion by suspected Fulani herdsmen.
In his denunciation, MOSOP President Fegalo Nsuke described the incident as very unfortunate and deeply troubling, warning against a recurrence of the violence experienced in Benue State. “The killing of yesterday is bad and very unfortunate. We are getting preliminary information about how the herders gained access to the farmland, and it appears some hoodlums may be collecting money and granting access illegally.”
He called on the Hausa community in Rivers State to intervene swiftly to prevent further attacks.
“We want the Hausa community in Rivers State to take urgent action to ensure these issues are resolved”.
But will such appeal and requests end the violent disposition of the Fulani herdsmen? It is not saying something new that the escalating threat and breach of peace across the country by the Fulani herdsmen or those suspected to be Fulani herdsmen, leaves much to be desired in a country that is bedevilled by multi-dimensional challenges and hydra-headed problems.
Some upland Local Government Areas of Rivers State, such as Etche, Omuma, Emohua, Ikwerre, Oyigbo, Abua, Ogba/Egbema/Ndoni, have severally recounted their ordeals, as herdsmen invaded farmlands, destroyed crops, raped female farmers and killed protestant residents.
Again the wanton destruction of lives and properties which no doubt has overwhelmed the Nigerian Police, makes the clamour for State Police, indispensable. The National Assembly should consider the amendment of the Constitution to allow States to have their Statutory policing agencies.
As insurgency has risen to an all time high in the country were killings has now grown to be a normal daily activity in some part of the nation it may not be safe to say that Nigeria still practices democracy.
Several massacres coming from the Boko Haram and the herdsmen amongst all other insurgencies which have led to the destruction of homes and killing, burning of communities especially in the northern part of the country. All these put together are result of the ethnic battles that are fought between the tribes of Nigeria and this can be witnessed in Benue State where herders and farmers have been in constant clashes for ages. They have experienced nothing but casualties and unrest.
In the month of June 13-14, the Yelwata attack at the Guma Local Government Area by suspected gunmen or herdsmen who stormed the houses of innocent IDPs (Internally Displaced Persons) claiming the lives of families, both adults and children estimated to be 200 victims. They were all burnt alive by these unknown gunmen.
This has been recorded as one of the deadliest insurgencies that had happened in recent years. Some security personnel that were trying to fight the unknown gunmen also lost their lives.
Prior to the Yelewata attack, two days before the happening, similar conflict took place in Makurdi on June 11, 2025. 25 people were killed in the State. Even in Plateau State and the Southern Kaduna an attack also took place in the month of June.
All other states that make up the Middle Belt have been experiencing the farmers/herders clash for years now and it has persisted up till recent times, claiming lives of families and children, homes and lands, escalating in 2025 with coordinated assaults.
Various authorities and other villagers who fled for safety also blamed the herdsmen in the State for the attack that happened in Yelwata community.
Ehebha God’stime is an Intern with The Tide.
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