Nigeria’s currency has fallen to a record low as inflation surges. How did things get so bad?

Nigerians are facing one of the West African nation’s worst economic crises in years. It was triggered by surging inflation, the result of monetary policies that have pushed the currency to an all-time low against the dollar. The situation has provoked anger and protests across the country. The latest government statistics released Thursday showed the inflation rate in January rose to 29.9%, its highest since 1996, mainly driven by food and non-alcoholic beverages. Nigeria’s currency, the naira, further plummeted to 1,524 to $1 on Friday, reflecting a 230% loss of value in the last year. The plummeting currency worsens an already bad situation, further eroding Nigerians' incomes and savings.