The International Monetary Fund has said Nigeria and other countries in the Sub-Saharan African region risk social and political instability and worsening food insecurity because of rising inflation.
According to the IMF, inflation has nearly doubled pre-pandemic levels in the region, adding that while there is a significant difference between countries, the median inflation rate in the region increased to almost nine per cent in August.
It said, “And even though the rise has been less dramatic than in other parts of the world, and the drivers are different, inflation is nearly double pre-pandemic levels, risking social and political instability and worsening food insecurity.”
It disclosed this in a report titled, ‘Africa’s Inflation Among Region’s Most Urgent Challenges.’ The fund explained that the region was besieged by a slow recovery from the pandemic, rising food and energy prices, and high levels of public debt.
It stated that despite an economic rebound in 2021, the fallout from the pandemic has kept domestic economic activity in the region relatively muted, and it expects growth to slow this year.
The Washington-based lender stated that unlike richer countries in other regions, most countries in the region lack the needed resources to support and stimulate growth.
