Inflation and Productivity in Nigeria
The GDP report of the National Bureau of Statistics (NBS) between Q2, 2021 and Q1, 2022 vividly illustrated how the degenerating EoDB is putting a strain on the productivity of the country’s economy. According to the NBS, Nigeria’s growth rate declined from 5.01 in Q2, 2021 to 4.03 in Q3, 2021. It further declined to 3.98 and 3.11 in Q4, 2021, and Q1, 2022 respectively.
Productivity fell 4.2% in Q2 following a 7.4% fall in Q1. YoY productivity fell 2.5%, the largest drop since the series started in 1987. With falling productivity real wages must fall and consumer prices must rise. Bad policy/decision making from both common citizens and the government are making the problems worse.