Real Inflation rate in Nigeria is 52 per cent- Don

A Professor of Applied Economics at Johns Hopkins University, Professor Steve H. Hanke, has argued that the actual inflation rate in Nigeria is worse than what is being reported by the National Bureau of Statistics.

Based on Hanke’s Inflation Dashboard, the inflation rate in Nigeria is an eye-popping 52%, not the 20.8% official record reported for September 2022.

Note that Nigeria ranks 16th out of 23 countries featured in the dashboard.

The methodology used: Professor Steve H. Hanke measured the inflation rate in Nigeria using high-frequency, free-market exchange-rate data in combination with Purchasing Power Parity (PPP) theory. The rapid depreciation of the naira in the black market was also factored into calculating the inflation rate.

The economic theory of PPP is commonly used to compare the economic health of countries. PPP measures are also used by global institutions such as the World Bank, United Nations, International Monetary Fund, and European Union.