(Ecofin Agency) - Inflation in Africa's most populous nation soared to its highest level in 28 years in April 2024, propelled by the reduction of subsidies on energy products and the currency devaluation twice.

Data released yesterday by the National Bureau of Statistics (NBS) showed that Nigeria's inflation reached its highest level since 1996, standing at 33.69% yoy, up from 33.20% in March.

Food and non-alcoholic beverages continued to be the largest contributor to inflation during the past month. The Consumer Price Index for this category hit 40.53% on an annual basis in April, compared to 40.01% in March.

The surge in inflation can be traced back to the reduction of subsidies on energy products and the currency devaluation, both decisions made by the Tinubu administration. To combat inflationary pressures, the Nigerian Central Bank has raised interest rates twice since the beginning of the current year, stating that these rates will remain high for as long as necessary.

In the same vein, on April 30, the government announced an increase in civil servants' salaries from 25% to 35%, retroactive to January. It also relaunched a program of direct social transfers to needy families, and distributed at least 42,000 tonnes of cereals such as corn and millet.