ABUJA - Nigeria’s economy grew 2.7% last year, the lowest rate since the country’s recession in 2020, according to data released by the country’s National Bureau of Statistics last week.

The slowdown follows low growth across most sectors of Africa’s largest economy. The transport sector was the worst hit.

The road transport sector shrank 55% between March and June, a downward trend that continued until December.

President Bola Tinubu’s termination of a decades-long petrol subsidy — which cost the government $10 billion in 2022 alone — saw pump prices triple across Nigeria last year, leading to corresponding hikes in transportation fares.

Petrol prices have risen further this month, and transportation and food prices hikes are likely to follow, as goods are mostly moved by road in Nigeria.

The main labour unions for government employees held protests today in response to the nation’s 30% inflation rate. They say the government has yet to implement cost-of-living adjustments agreed to last October.

Galloping inflation

Nigeria’s central bank raised its main interest rate by 400 basis points to 22.75%, as the country battles a months-long cost of living crisis that has sparked protests. “We expect that this will moderate [inflation] in the short to medium term,” said central bank governor Yemi Cardoso on Tuesday.

Nigeria’s inflation is at a three-decade high of 30%. The rate review is the first since Cardoso assumed leadership of the bank in September, and follows two canceled meetings of the monetary policy committee.