According to Vanguard, The IMF pointed out that the NBS’s current index weights do not provide a true representative of expenditure patterns, and that using outdated weights could introduce a bias into the index presented by the NBS. The report also highlighted that an updated producer price index is currently being compiled, but the funding for the survey is uncertain. However, the second African Regional Technical Assistance Centre in West Africa is set to support Nigeria in the CPI update and improvement.
The International Monetary Fund (IMF) has raised concerns about the inflation index of Nigeria, calling the weights and basket used by the National Bureau of Statistics (NBS) for the monthly consumer price index extremely outdated. In a report titled “Nigeria: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nigeria,” the IMF emphasized the need for the NBS to use new weights from the 2018 National Household Livings Standards instead of the 2003/04 National Consumer Expenditure Survey.
The IMF’s warning of an outdated index comes at a critical time for Nigeria, which is battling high inflation rates and a struggling economy. The country has been experiencing inflationary pressure for the past few years, with the inflation rate exceeding the Central Bank of Nigeria’s target range of 6% to 9% for the past six years.
