The Organised Private Sector (OPS) has identified the struggling state of the Nigerian Naira as a key factor contributing to the highest inflation rate in 21 years. This acknowledgment sheds light on the intricate relationship between currency performance and inflationary pressures in the country.
The OPS, representing the organized business community, points to the challenges faced by the Naira as a critical driver of the surging inflation. The struggles of the national currency, including devaluation and fluctuating exchange rates, have cascading effects on prices of goods and services, creating an inflationary environment.
The depreciation of the Naira adversely impacts the cost of imported goods, leading to increased production costs for businesses. This cost-push inflation dynamic is exacerbated when businesses pass on the elevated costs to consumers, contributing to the overall rise in the inflation rate.

Additionally, the struggling Naira affects consumer purchasing power, as the cost of imported goods and services becomes more expensive. This reduction in purchasing power can further contribute to demand-pull inflation, where increased demand for limited goods and services leads to higher prices.
The OPS’s attribution of the highest inflation in 21 years to the Naira’s challenges underscores the interconnectedness of economic factors. It emphasizes the need for comprehensive measures, including monetary and fiscal policies, to stabilize the currency and curb inflationary pressures.
Addressing the root causes of the Naira’s struggles, such as foreign exchange management, external trade policies, and economic diversification efforts, becomes crucial for mitigating inflationary trends. The OPS’s perspective underscores the importance of a holistic approach involving both public and private sector collaboration.
In conclusion, the OPS’s recognition of the struggling Naira as a primary factor behind the highest inflation in 21 years highlights the intricate relationship between currency performance and inflation in Nigeria. Addressing the challenges faced by the Naira becomes paramount in formulating effective strategies to combat inflation and foster economic stability.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate