Nigeria’s inflation surged to 17.3% in February 2021 from 16.5% in January 2021, the highest reading since February of 2017, as the COVID-19 crisis led to a weaker naira, raising food and transportation costs.
According to OPEC Monthly Oil Market Report, food inflation topped 21.8%, the highest since October of 2005, and transportation surged 14.1%.
In response, the Federal Government plans to cut import duty on tractors and mass transit vehicles to lower transportation costs and reduce food prices.
For the time being, the second wave of COVID-19 infections has been reduced from late January levels, and optimism has arisen following the arrival of the first batch of vaccines in early March.
This has been reflected in the total economy Nigeria Composite PMI, which rose from 51.2 in February 2021 to 52.9 in March 2021.