In Nigeria, headline inflation climbed for the 14th consecutive month with an increase of 1.54% on a monthly basis, the highest since June 2017. It also rose to its highest level since February 2018.

Meeting on 23-24 November 2020, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) said it had noted with "concern" that inflation is rising for the fourteenth consecutive month year-on-year, from 13.71% in September 2020, its highest level since March 2018, to 14.23% in October 2020. This is its highest level since February 2018.

In detail, the central bank notes that core inflation rose to 11.14% in October 2020, from 10.58% in September. Food inflation stood at 17.38%, up from 16.66% in September. An increase that the institute attributes to "the persistence of insecurity throughout the country as well as persistent structural deficiencies impacting on the transport of food to urban areas, such as poor road networks, an unstable power supply and a series of other infrastructural deficiencies."

While the main upward pressure on inflation comes from food prices, it should be noted that inflation from other key sectors is not insignificant. These are health (13.08% against 12.58%), transport (12.11% against 11.65%), clothing and footwear (11.25% against 11.02%), alcoholic beverages, tobacco and kola (10.79% against 10.59%) and furniture (10.67% against 10.43%).

According to the Central Bank, forecasts point to a "probable attenuation" of the rise in inflation "in the medium term", "as domestic production is expected to recover, following the resumption of economic activities after the Covid-19 restrictions". "Inflation is expected to slow by the first quarter of 2021," she says.

Note that consumer prices edged up 1.54% on a monthly basis, the highest since June 2017.

Officially entering recession after the 3rd quarter of the year – after the worst decline in its economy in nearly four decades – Nigeria expects an annual inflation rate of 11.95% in 2021 according to the draft budget under consideration in Parliament, against 13.39% previously planned for 2020.