01/08/2026
Before now, in our elementary economics, we were told that inflation is the general rise in the prices of goods and services. It was also importantly noted that it is when too much money is chasing few goods, which is better known as demand-pull inflation
But today, the current economic situation seems to render the above definition invalid. Yes, because the prices of goods are going up, yet there is no money in the economy. Then, how can one define it? Yes, the truth is that we are in the economic policy era in Nigeria that gave birth to Stagflation-like cost inflation. What is it? This is an economic situation where the economy is not growing yet the prices of goods are going up.
One basic impact on the above economic nature is the removal of fuel subsidy. This is because Fuel remains the engine of Nigeria economy presently. The same fuel that gave rise to the cost of production also mops up money in the economy. However, the influence becomes that the economy is either dwindling or at stagnant stage, yet the prices of the product grow like elephants.
