Tag: Inflation

  • Nigeria’s inflation rate drops further

    Nigeria’s inflation rate drops further

    Nigeria’s inflation rate has dropped by 0.37 per cent to 17.01 per cent (year-on-year) in August, from the 17.38 per cent recorded in July.

    This was disclosed in the Consumer Price Index report just released by the National Bureau of Statistics.

    According to the report, composite food index also dropped to 20.30 per cent against 21.03 per cent in July.

    “This rise in the food index was caused by increases in prices of bread and cereals, milk, cheese and egg, oils and fats, Potatoes, yam and other tuber, food products n.e.c, meat and coffee, tea and cocoa,” the report read in part.

    At the same time, the country’s urban inflation rate fell to 17.59 per cent year-on-year, from 18.01 per cent recorded two months ago, rural inflation rate tapered to 16.43 per cent from a previous 16.75 per cent, while core inflation, which excludes the prices of volatile agricultural produce dropped by 0.31 per cent to 13.41 per cent in from 13.72 per cent recorded in July.

    “The corresponding twelve-month year-on-year average percentage change for the urban index is 17.19 per cent in August 2021. This is higher than 16.89 per cent reported in July 2021, while the corresponding rural inflation rate in August 2021 is 16.03 per cent compared to 15.73 per cent recorded in July 2021,” the report further stated.

  • Nigeria’s inflation rate drops further

    Nigeria’s inflation rate drops further

    Nigeria’s consumer price index (CPI), a measurement of the rate of change in prices of goods and services, has declined to 17.75% in June from 17.93 recorded in May 2021.

    The ‘Consumer Price Index Report for June’ released by the National Bureau of Statistics (NBS) on Friday, means that the prices have continued to increase in June 2021. However, it was at a slower rate than it did in the last month.

    “The CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living,” the NBS noted in its report.

    “The construction of the CPI combines economic theory, sampling and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.”

    The country’s Headline Index, on a month-on-month basis, moved by 1.06% in June 2021. This figure was 0.05 percentage points higher than what was recorded in May 2021 – pegged at 1.01%.

    There was also an increase in the urban inflation rate as it jumped by 18.35 %(year-on-year) in June 2021 from May 2021’s 18.51%. On the other hand, the rural inflation rate moved by 17.16% in June 2021 from 17.36% in May 2021.

    The NBS report equally noted that the composite food index increased by 21.83 % in June 2021. This is against the 22.28% reported in May 2021.

    The implication is that prices of food rose in the month under review but at a little slower pace than what was recorded in May 2021.

    Increases in prices of bread, cereals, yam, and others, drove the food price index.

  • IMF expresses concerns over Nigeria’s unemployment, inflation rates

    IMF expresses concerns over Nigeria’s unemployment, inflation rates

    An International Monetary Fund (IMF) team on Thursday said that Nigeria’s economy was “gradually” recovering from the negative effects of the COVID-19 pandemic.

    IMF disclosed this in its End-of-Mission statement from its headquarters in Washington, DC, on preliminary findings following virtual meetings by its staff teams with the Nigerian authorities from June 1 to 8.

    The IMF team, led by Ms. Jesmin Rahman, discussed recent economic, financial developments and outlook and noted that “real Gross Domestic Product (GDP) was recovering but unemployment and inflation remained elevated”.

    It added among other things that recent exchange rate measures were encouraging and further reforms were needed to achieve a fully unified and market-clearing exchange rate.

    The findings also said the resurfacing of fuel subsidies was concerning, particularly in the context of low revenue mobilisation.

    “The Nigerian economy has started to gradually recover from the negative effects of the COVID-19 global pandemic.

    “Following sharp output contractions in the second and third quarters, GDP growth turned positive in fourth quarter 2020 and growth reached 0.5 per cent (year-over-year) in first quarter 2021, supported by agriculture and services sectors.

    “Nevertheless, the employment level continues to fall dramatically and, together with other socio-economic indicators, is far below pre-pandemic levels.

    “Inflation slightly decelerated in May but remained elevated at 17.9 per cent, owing to high food price inflation.

    “With the recovery in oil prices and remittance flows, the strong pressures on the balance of payments have somewhat abated, although imports are rebounding faster than exports and foreign investor appetite remains subdued resulting in continued foreign exchange shortage.”

    The report said that the incipient recovery in economic activity was projected to take root and broaden among sectors, with GDP growth expected to reach 2.5 per cent in 2021.

    It added that inflation was expected to remain elevated in 2021, but likely to decelerate in the second half of the year to reach about 15.5 per cent, following the removal of border controls and the elimination of base effects from elevated food price levels.

    “Tax revenue collections are gradually recovering but, with fuel subsidies resurfacing, additional spending for COVID-19 vaccines, and to address security challenges, the fiscal deficit of the Consolidated Government is expected to remain elevated at 5.5 per cent of GDP.

    “Downside risks to the near-term arise from further deterioration of security conditions, and the still uncertain course of the pandemic both globally and in Nigeria,” it said.

    The IMF team commended the Nigerian authorities’ measures to contain the transmission of COVID-19 in the country.

    It also commended the on-going vaccination programme under the COVAX initiative, and expressed strong support to the Nigerian authorities’ efforts to acquire additional doses from countries with surplus stocks.

    The IMF team, however, expressed its concern with the resurgence of fuel subsidies.

    It reiterated the importance of introducing market-based fuel pricing mechanism and the need to deploy well-targeted social support to cushion any impact on the poor.

    It recommended stepping up efforts to strengthen tax administration to mobilise additional revenues and help address priority spending pressures.

    “The mission urged the authorities to keep reliance on the Central Bank of Nigeria (CBN) overdrafts for deficit financing within legal limits.

    ”The mission also advised the government to continue to make efforts to strengthen budget planning and public finance management practices to allow for flexible financing from domestic markets and better integration of cash and debt management,” it stated.

    It said that the recent removal of the official exchange rate from the CBN website and measures to enhance transparency in the setting of the Nigerian Autonomous Foreign exchange rate (NAFEX) were encouraging.

    The mission recommended maintaining the momentum toward fully unifying all exchange rate windows and establishing a market-clearing exchange rate.

    On monetary policy, to strengthen the monetary targeting regime, the mission recommended integrating the interbank and debt markets and using central bank or government bills of short maturity as the main liquidity management tool, instead of the cash reserve requirements.

    “The banking sector remains liquid and well-capitalized while non-performing loans (NPLs) are contained.

    “The extension of the moratorium on principal payments of qualifying credit facilities on a case-by-case basis through March 2022 should be limited to viable debtors with strong pre-crisis fundamentals.

    “CBN stress tests purport that the banking system would remain adequately capitalised except in case of a severe deterioration of credit quality.

    “Nevertheless, it remains to be seen what share of forborne loans may turn non-performing as the impact of the pandemic abates.”

    It, however, cautioned that since NPLs often rise at the later part of economic crisis, CBN’s strong oversight remained critical to safeguarding financial sector stability.

    The IMF mission thanked the Nigerian authorities and other counterparts for what it termed “the open and thoughtful discussions and excellent cooperation”

  • Nigeria’s inflation rate drops further by 0.19 per cent

    Nigeria’s inflation rate drops further by 0.19 per cent

    The National Bureau of Statistics (NBS) Tuesday said that inflation rate in the month of May 2021 is now 17.93 per cent.

    The Bureau said the figure reduced by 0.19 per cent from the 18.12 per cent recorded in April, 2021.

    The NBS made this known in its Consumer Price Index (CPI) report of May 2021.

    It added that on month-on-month basis, the headline index rose by 1.01 per cent in May 2021.

    According to the report; “On month-on-month basis, the Headline index increased by 1.01 percent in May 2021.

    “This is 0.04 percentage points higher than the rate recorded in April 2021 (0.97 percent).

    “The consumer price index, (CPI) which measures inflation increased by 17.93 percent (year-on-year) in May 2021. This is 0.19 percent points lower than the rate recorded in April 2021 (18.12 percent).”

    NBS said increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index.

    The urban inflation rate, according to the bureau, increased by 18.51 percent (year-on-year) in May 2021 from 18.68 percent recorded in April 2021, while the rural inflation rate increased by 17.36 percent in May 2021 from 17.57 percent in April 2021.

    On a month-on-month basis, NBS noted that the urban index rose by 1.04 percent in May 2021, up by 0.05 percentage points compared to the rate recorded in April 2021 (0.99), while the rural index rose by 0.98 percent in May 2021, up by 0.03 points compared to the rate that was recorded in April 2021 (0.95 percent).

    It explained that the percentage change in the average composite CPI for the twelve months period ending May 2021 over the average of the CPI for the previous twelve months period was 15.50 percent, showing a 0.46 percent point rise from 15.04 percent recorded in April 2021.

    NBS said the corresponding twelve-month year-on-year average percentage change for the urban index is 16.09 percent in May 2021. This is higher than 15.63 percent reported in April 2021, while the corresponding rural inflation rate in May 2021 is 14.94 percent compared to 14.48 percent recorded in April 2021.

    In terms of All Item Index, the report said the composite food index rose by 22.28 percent in May 2021 compared to 22.72 percent in April 2021.

    It added that the average annual rate of change of the Food sub-index for the twelve-month period ending May 2021 over the previous twelve-month average was 19.18 percent, 0.60 percent points from the average annual rate of change recorded in April 2021(18.58) percent.

    The NBS said “on month-on-month basis, the food sub-index increased by 1.05 percent in May 2021, up by 0.06 percent points from 0.99 percent recorded in April 2021.

    “This rise in the food index was caused by increases in prices of Bread, Cereals, Milk, Cheese, Eggs, Fish, Soft drinks, Coffee, Tea and Cocoa, Fruits, Meat, Oils and fats and Vegetables.

    “The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.15 percent in May 2021, up by 0.41 percent when compared with 12.74 percent recorded in April 2021.

    “On month-on-month basis, the core sub-index increased by 1.24 percent in May 2021. This was up by 0.25 percent when compared with 0.99 percent recorded in April 2021.

    “The highest increases were recorded in prices of Pharmaceutical products, Garments, Shoes and other footwear, Hairdressing salons and personal grooming establishments, Furniture and furnishing, Carpet and other floor covering, Motor cars, Hospital services, Fuels and lubricants for personal transport equipment, Cleaning, repair and hire of clothing, Other services in respect of personal and transport equipment, Gas, Household textile and Non-durable household goods.

    “The average 12-month annual rate of change of the index was 11.50 percent for the twelve-month period ending May 2021; this is 0.25 percent points higher than 11.25 percent recorded in April 2021.”

  • BREAKING: Nigeria’s inflation rate drops to 18.12%

    BREAKING: Nigeria’s inflation rate drops to 18.12%

    Nigeria’s rate of inflation dropped to 18.12 percent in April 2021, the National Bureau of Statistics (NBS) said on Monday

    TheNewsGuru.com, TNG reports that the nation’s inflation figure was 18.17 per cent in March, shedding 0.05 per cent to close at 18.12 in April.

    According to the NBS: “The Consumer Price Index, which measures inflation increased by 18.12 per cent (year-on-year) in April 2021.

    “This is 0.05 per cent points lower than the rate recorded in March 2021 (18.17 per cent).”

    TNG reports that the 0.05 per cent drop in April 2021 was the first time Nigeria’s inflation rate would fall in about 20 months as the last time it fell was in 2019 when the CPI shed 0.06 per cent, falling from 11.08 per cent in July to 11.02 in August.

    In its April 2021 inflation report, the NBS stated increases were recorded in all Classification of Individual Consumption by Purpose divisions that yielded the headline index.

    On month-on-month basis, the headline index increased by 0.97 per cent in April 2021, this was 0.59 percl cent rate lower than the rate recorded in March 2021 (1.56 per cent).

    The percentage change in the average composite CPI for the 12 months period ending April 2021 over the average of the CPI for the previous 12 months period was 15.04 per cent, showing 0.48 per cent point from 14.55 per cent recorded in March 2021.

    The urban inflation rate increased by 18.68 per cent year-on-year in April 2021 from 18.76 per cent recorded in March 2021, while the rural inflation rate increased by 17.57 per cent in April 2021 from 17.60 per cent in March 2021.

    On a month-on-month basis, the urban index rose by 0.99 per cent in April 2021, down by 0.61 the rate recorded in March 2021 (1.60 per cent).

    The rural index also rose by 0.95 per cent in April 2021, down by 0.57 the rate that was recorded in March 2021(1.52 per cent).

    The corresponding 12 month year-on-year average percentage change for the urban index was 15.63 per cent in April 2021.

    This was higher than 15.15 per cent reported in March 2021, while the corresponding rural inflation rate in April 2021 was 14.48 per cent compared to 13.99 per cent recorded in March 2021.

  • Nigerians may eat grass and like it – Dele Sobowale

    Nigerians may eat grass and like it – Dele Sobowale

    By Adele Sobowale

    Love and business and family and religion and art and patriotism are nothing but shadows of words when a man is starving.

    O Henry, 1862-1910, VANGUARD BOOK OF QUOTATIONS, VBQ, p 232.

    Rats, lizards, cockroaches etc might also be on the national menu in 2021. We have already added another trophy to our collection this year. Nigeria has been rated the third worst country in the world in which to live. We might become the world’s largest consumers of house rats – as things are going.

    O.k; you think this is a joke. But, before I provide the evidence, kindly remember how many predictions made on these pages are coming true right now. Almajiris are no longer begging; States are finding they can’t pay Minimum Wage; virtually everyone who voted for Buhari, contrary to my advice in 2018 is now regretting it; Next Level has turned to pure anarchy – to mention a few. This one is the Mother of all prophecies. Believe it or not at your peril. The greatest challenge facing Nigerians this year is what to eat.

    “There is no starvation in Nigeria.” Minister of Agriculture.

    The current Minister of Agriculture resumed office in 2019 and immediately revealed himself by making a claim which could be easily refuted. All he had to do was to walk into any of the Internally Displaced Peoples’ camps in Nigeria and count thousands massed there and starving. But, by then many of Buhari’s appointees have already demonstrated that nobody should believe what they say. I just hope the Minister is not still living in his own peculiar paradise with regard to food provision for Nigerians.

    Nothing proves pervasive scarcity of anything better than price movements. My personal experience buying yams for the family is not unique; it merely tells an ongoing story briefly. It also portends a great tragedy unfolding. In February, I stopped a yam seller and bought two tubers, after intense bargaining, for N1600. In mid-April, the same yam seller was pushing his truck and I asked for two yams. All the bargaining in the world got me nowhere. We settled for N2600. May 5, it was the same fellow and the price had gone to N3000 – “because you Oga you be good customer.” I was not surprised. Food price inflation now drags the average up relentlessly; and the end is not in sight. Why?

    FARMING CAN COST YOU EVERYTHING – LIFE INCLUDED.

    “I cry every time I buy plantain.” Wife of a medium scale plantain farmer.

    He and millions who, hitherto had built their lives around farming, now have lots of reasons to shed tears. A household, which for over 25 years had never lacked for plantain, because they grow it, now must buy it. Their misfortune, now becoming widespread in farming communities, constitutes the background for what is now becoming an imminent national catastrophe. Farming has become so risky, none but the bravest will now continue with it. It can now cost the farmer lives – those of his workers and his.

    In the past, it invariably required the death of the farmer for a farm to go fallow. Now, millions of farmers are walking away from their farms – to save lives. Femi Adesina, the Presidential spokesman, in July 2018, made the following announcement – the repercussions of which neither the Federal Government, nor the Fellow Nigerians addressed fully understood. Femi himself certainly did not think it through. Here is what he said.

    “Ancestral attachment? You can only have ancestral attachment when you are alive. If you are dead , how does the attachment matter? The National Economic Council that recommended ranching didn’t just legislate it; there were recommendations. So if your state does not have land for ranching, it is understandable. Not every state will have land for ranches. But, where you have land and you can do something, please do for peace. What will the land be used for if those who own it are dead at the end of the day?”

    The FG, comprising of myopic people, when issuing that ultimatum never thought of all the possible outcomes; other than the two options. By deliberate neglect of the increasing menace of herdsmen nationally, they have allowed Fulani herdsmen to capture a lot of land called “forests”. Farmers have been driven off their land; some killed; others abducted; the rest scared to go farming.

    But, just before Femi and co start self-congratulations, let me deliver the bad news to them as bluntly as possible. The victory is temporary.

    The situation now in farmland is as stark as this. Irrespective of whether it is a small scale or mechanised large scale farm, everyone is now faced with the absence of protection against herdsmen, bandits and kidnappers. To some extent, they are all the same. Read Femi’s statement again. He obviously supports the forceful take over of private farms for grazing. What he and others in the National Economic Council failed to realise is the fact that a group of individuals allowed to bear arms illegally for grazing would not limit the use of the weapons to that purpose. Attacks on Nimo and Agatu were not carried out by those wanting to feed cattle. They were inspired by land-grabbers. They also went into kidnapping, raping and large scale arson. They unleashed terror in farmland; with which farmers are now dealing in various ways. But, the most pertinent for today is the wholesale abandonment of farms because it has become too risky; and the consequences for Nigerians.

    UNINTENDED CONSEQUENCES OF FG POLICY

    “If you think your enemy has two courses open to him, be sure he will choose the third. Helmut von Moltke, 1818-1916.

    Your land or your life appeared as the only options open to the people whose land were going to be seized by herdsmen with government approval. But, appetite grows with eating. Once herders started invading lands, they started diversify to other crimes. They also inspired other criminals; and some abandoned their original trade to go into banditry.

    Farmers, large or small have been the major victims of there atrocities. We continued working when the risk got higher in the belief that the situation would improve. Now, it is clear that the Buhari administration has no solution to farmers’ problems. Let me explain them.

    Whether working on your own, in your farm, or employing people, it is impossible to predict kidnap or murder. The farm inevitably is crippled when any of it happens. A dead farmer has to be buried; and invariably the farm is left unattended. Those of us employing workers can get hit in several ways. A worker or two might be abducted; and the farm owner must pay the ransom. Even after paying, you might receive a corpse in return. Worse still, the owner himself might be kidnapped. The result is the same – he might be released or murdered after ransom payment. Worst of all, there is no guarantee of not being visited again. The workers, who regain their freedom, never return to work again. Others might walk away as well. In short, one hit is all it takes to destroy what it has taken years to build.

    This year, many farmers are calculating the risks; factoring in the possible costs of herdsmen invasion, bandits and kidnappers; and they have decided to take a break for this year. It is difficult to determine how many million farmers will walk away this year. But, if the reports I am receiving is reliable, then close to 20 per cent or more of farmers will be on holiday this year. Buhari administration will have another trophy for Aso Rock – the number of famished Nigerians feeding on grass.

    This year calls keep coming in from friends and associates since my farming days in the North. Six of the most important farm states – Niger, Kaduna, Katsina, Zamfara, Plateau and Benue – are now under siege of the hoodlums. Shutting down even one of those states would have resulted in serious famine. Paralysing all six, as well as hampering farmers in the rest, will this year have the unintended repercussion of starving millions of Nigerians to death. Even relatives of the criminals will share in the pain. So will those who failed to nip the herdsmen menace in the bud before it became a giant oak tree of problems.

    We still won’t give up the farm. We will live to see those who encouraged herdsmen squirm as hungry Nigerians make their feelings known to Abuja. I am waiting to read the excuses and the lies as the grim scenario unfolds.

    NEARER AND NEARER DRAWS THE TIME

    “And now, the end is near

    And so I face the final curtain..

    I took all the blows

    And did it my way

    Frank Sinatra,

    Miraculously, I clocked 77 on Saturday, May 8, 2021. I never expected to make it to 60. In Obong Victor Attah’s family, I would not even be the third oldest ever. But, here I am in the Sobowale family, everyday I live is a new record for somebody to break in the future. I spent a week meditating on the next step.

    My first article appeared in VANGUARD in 1986/7, the year Lever Brothers, now Unilever, launched ROYCO seasoning cubes to challenge Nestle’s MAGGI. In their pre-launch promotions, LBN claimed that the new brand will within five years have 25 per cent of the market share in Nigeria. I disagreed. My first article on Monday under MARKETFACT by Dele Sobowale was titled MAGGI IN ROYCO SOUP. I told readers that ROYCO will not get up to 10 per cent in ten years. MAGGI will not allow it. It almost brought down the roof on my career as a columnist. LBN, one of the paper’s leading advertisers, not only wrote rejoinder calling me all sorts of names; they asked VANGUARD to get me to withdraw the article and apologise. Thank God, Uncle Sam intervened; read the article and saw it as fair comment. That was the Genesis of almost 34 years of writing for VANGUARD – more than 3000 articles altogether.

    Touching the “untouchables” had been the brand image. Babangida, Shonekan, Abacha, Abubakar, Obasanjo, Yar’Adua, Jonathan and now Buhari were my favourite games. Presidents are always larger than life; and they control so much of our lives; that in my opinion, no writer can leave them and go about tackling Local Government Chairmen. And, I paid the price in detentions under IBB (3) and Abacha (4). But, I always returned to my beat after release and continued where I was “rudely interrupted”.

    Fear was the last thing I felt because too often, these guys were literally killing us. Not once did I ask for appointment or contract or assistance from a serving officer – President, Minister, Commissioner etc in all those years. The Ministers I met could not have been more than ten. It was my policy to keep my distance – even if I lose money by so doing. Incidentally, the altercation between the Presidency and Rev Mbaka cannot possibly occur with me. I never ask government officials for personal favours. Despite that, some have given me gifts of their own volition; and on my own condition. Nobody buys favourable comments on my page. You earn them.

    Now, I am at cross roads. It is always better to leave when there is still some ovation….

    To be continued

  • 18.17% inflation rate not healthy for Nigerians —MAN

    18.17% inflation rate not healthy for Nigerians —MAN

    The Manufacturers Association of Nigeria (MAN) has described the recent 18.17 per cent inflation figure released by the Nigeria Bureau of Statistics (NBS), as worrisome and very unhealthy for the well-being of Nigerians and the nation’s economy.

    While calling for proper management of the situation before getting out of hand, the Director-General of the association, Segun AjayiKadir, in a statement, argued that the present inflationary condition had begun to take its toll on the profitability of the nation’s manufacturing sector, and its competitiveness.

    “Clearly, there is an urgent need for Government to intentionally ensure price stability before the situation becomes deplorable,” he stated.

    The MAN boss also stressed the need for the federal government to pursue consumer price stabilisation measures that would stimulate growth in agricultural output.

    He called on the Federal Government to provide ‘deliberate’ support to the manufacturing sector, so as to guarantee improved output that would engender reduced intensity of ‘too much money chasing after fewer goods.’

    Ajayi-Kadir also advocated for a more intimate working relationship between the Federal Ministry of Finance (FMF) and the Central Bank of Nigeria (CBN), to enable them design policies that would affect the real sector of the economy, and prevent a situation where the agencies worked at cross purposes.

    “For instance, while CBN was creating funding windows at single digit interest rate to encourage production, government increased VAT from five per cent to 7.5 per cent. Similarly, the government increased minimum wage and also allowed an increase in electricity tariff, and so on,” he stated.

    Ajayi-Kadir also stressed the need for the Federal Government to partner with the nation’s manufacturers in selecting strategic products, particularly those with high inter-industry linkage, for backward integration support, while also upscaling the drive for resource-based industrialisation agenda.

    While lamenting the huge number of moribund industries in the country, today, the MAN boss, therefore, called for an industrial clinic that would engender the resuscitation of such distressed industries in the country, so as to boost output and ultimately achieve price reduction.

     

  • BREAKING: Nigeria records highest inflation rate in four years

    BREAKING: Nigeria records highest inflation rate in four years

    Nigeria’s inflation rate has continued to rise as the Consumer Price Index (CPI) which measures inflation increased to 18.17 per cent (year-on-year) in March.

    This is 0.82 per cent points higher than the rate recorded in February (17.33 percent), which makes it the highest reported in four years since April 2017.

    The National Bureau of Statistics disclosed the new figure in its CPI March 2021 report released on Thursday.

    Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index, the report said.

    On a month-on-month basis, the Headline index increased to 1.56 per cent in March, indicating 0.02 per cent points higher than the rate recorded in the previous month which was 1.54 per cent.

    The percentage change in the average composite CPI for the twelve months period ending March 2021, over the average of the CPI for the previous twelve months period, was 14.55 per cent, representing a 0.50 per cent point higher than the 14.05 per cent recorded in February.

     

    Similarly, the urban inflation rate increased to 18.76 per cent (year-on-year) in March 2021 from 17.92 percent recorded in February.

    The rural inflation rate, on the other hand, now stood at 17.60 per cent in March 2021 from the 16.77 per cent reported last month.

    The urban index, on a month-on-month basis, rose to 1.60 per cent in March, representing an increase of 0.02 per cent compared to the rate recorded in February, while the rural index also rose to 1.52 per cent in March, up by 0.02 compared to the 1.50 per cent rate that was recorded in the previous month.

    According to the NBS report, the corresponding twelve-month year-on-year average percentage change for the urban index is 15.15 per cent in March.

    The agency noted that this was higher than the 14.66 per cent reported in February, while the corresponding rural inflation rate in March was 13.99 per cent compared to 13.48 percent recorded in February.

     

    It revealed that the composite food index rose to 22.95 per cent in March compared to 21.79 per cent in February.

    On a month-on-month basis, the food sub-index increased to 1.90 per cent in March, up by 0.01 per cent points from 1.89 per cent recorded in February.

    “This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, vegetable, fish, oils and fats, and fruits.

    “The average annual rate of change of the Food sub-index for the twelve-month period ending March 2021 over the previous twelve-month average was 17.93 per cent, 0.68 percent points from the average annual rate of change recorded in February 2021 (17.25) percent,” the report said.

  • Bandits, terrorists cause of Nigeria’s rising inflation – Emefiele

    Mr Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), has attributed the country’s rising inflation to worsening insecurity, caused by bandits, terrorists and armed herdsmen.

    Emefiele stated this on Tuesday while presenting the communique from the Monetary Policy Committee (MPC) meeting which started on Monday.

    Emefiele explained that the inflation, which has increased for the 18th consecutive month, was exacerbated by food inflation.

    He said that insecurity in many food producing areas of the country was a major contributing factor.

    “The MPC noted with concern the continued uptick in inflationary pressure for the 18th consecutive month as headline inflation continued on an upward to 17.33 per cent at the end of February 2021 from 16.47 per cent in January 2021.

    “This increase continues to be attributed to both food and other core components of inflation.

    “This specific uptick in food inflation was the major driving factor for the uptick in headline inflation.

    “This was due to the worsening security situation in many parts of the country, particularly the food producing areas where farmers faced frequent attacks by herdsmen and bandits in their farms,’’ he said.

    The apex bank’s governor said that while the bank was making significant intervention in the agricultural sector, the rising insecurity was limiting expected outcomes in terms of supply to the markets.

    He added that the situation was a major contributory factor to the rise in food prices.

    Emefiele urged the Federal Government to collaborate with relevant stakeholders to urgently address the challenge of insecurity across the country.

    He said that the inflationary trend was also worsened by the hike in the pump price of petrol, the upward adjustment of electricity tariff as well as depreciation in the value of the Naira.

    He, however, commended CBN’s various interventions to boost food security through its various agriculture programmes

  • Essential commodities are back – Dele Sobowale

    Essential commodities are back – Dele Sobowale

    Dele Sobowale

    “History does not repeat itself; man does.” Professor Barbara Tuchmann, Harvard University, USA.

    One man who is currently repeating himself, to the sorrow of Fellow Nigerians, is President Buhari. History has already recorded that as Military Head of State in 1984 to August1985, he led Nigeria to the first economic recession since independence. Recession by its nature is an economic monster destroying numerous public and private assets – ending up in increasing the Misery Index.

    In 1984, inflation reached unprecedented heights; companies laid off workers and created record level of unemployment; aggregate purchasing power declined precipitously. More Nigerians went below the poverty line in the twenty months of Buhari’s administration than ever before. Nigerians never had it so bad. And, all these were happening under a “corrective regime” which seized power on December 31, 1983. To silence Nigerians, the junta resorted to draconian measures and repressive decrees making grumbling out loud a punishable offence. It was the period of “Suffering and Smiling” – as Fela Anikulapo rendered in his immortal music.

    But, of all the calamities afflicting those alive then, none was worse than the emergence of “Essenco” or as Essential Commodities were called then. Those too young to be aware of the hardships Nigerians face, as well as those unborn at the time will find it unbelievable that, at one time in Nigeria, housewives and grandmothers had to stand on queue for hours just to be allowed to buy two tins of milk, sardine, infant milk powder, a box of detergent, two cakes of bath soap and some Maggi cubes. In truth that was what mothers and grandmothers went through under Buari’s brutal government.

    But, the greatest challenge Nigerians will face in the next two years will be the return of essential commodities. The longer it persists, the harder it will drive inflation. If care is not taken, we might be experiencing 30 per cent or more by the fourth quarter of this year. The worker’s take home pay which now cannot take him home, might not even get him to work if fuel scarcity kicks in.

    Brutality was an ever present aspect of the allocation of “essences”. Soldiers were in attendance at each allocation point; and the young thugs in uniform whipped mercilessly people old enough to be their grandmothers. I lived in Kaduna at the time, but my schedule of duties took me to all the Northern state capitals at least twice a month. Watching young soldiers whipping, slapping and kicking women with bestial abandon was an experience not to be forgotten – even in a thousand years. And, all the women wanted was the chance to buy these basic necessities for their families. Nigerians reading this must ask themselves a simple question: what sort of leader visited such atrocities on his people? The answer is: Buhari.

    GET SET FOR ROUND TWO OF ESSENCO WITH BUHARI.

    Those of us alive in 1985, when Buhari was d kicked out of office heaved sighs of relief. We were saved by the Almighty from worse barbarism that would have followed if Buhari/Idiagbon had continued in power. Nigerians, apparently are masochists. We love leaders who cause us great pain. So we elect as many of them as we can. Buhari returned to power in 2015 with our votes. Since then, the following disasters have also returned to Nigeria. Let me mention a few.

    First is recession; and this is what Buhari’s government announced for 2020.

    “ Nigeria’s GDP in the fourth quarter of 2020 grew by 0.11 per cent in real terms in the fourth quarter of 2020. This follows, if you will recall, two consecutive negative growth in the third quarter and second quarter of 2020, which saw the country going into recession. As a result of this fourth quarter positive growth, the total growth for the year 2020 is -1.92 per cent.”

    Inflation rushed in after it. Here is proof.

    “Pressure on food prices spikes inflation to 17.3%”. News Report.

    “This marked the highest figure recorded in the country since 2017.” Another Report.

    That was how we started in 1984. Hyperinflation led the parade of unfavourable economic indices and at one time reached close to 30 per cent. That invariably resulted in lower purchasing power and decline in aggregate demand. Industrial capacity utilisation followed inevitably and retrenchment followed – like the last man in a parade of mourners.

    As in 1984/5, we are not facing inflation caused by too much money chasing too few goods primarily. What we have on our hands is supply-side inflation. Producers of goods are now incapable of supplying what consumers want. When Buhari ordered the Central Bank of Nigeria, CBN, to stop providing foreign exchange to food processors and importers, he had in effect reduced aggregate production because not many in the Food and Beverage Sector can survive without collecting foreign exchange at official rates. Parallel market rates automatically introduce inflation. Now supermarket shelves are becoming empty. Even King Coca–cola is now rationed to distributors. That is always a weathervane showing where the wind is blowing in the sector.

    We are experiencing the same set of economic phenomenon in 2020/21.

    Unemployment is rising in absolute and percentage terms. About 23 million Nigerians are now regarded as unemployed. Close to 30 million are not fully employed or engaged in jobs other than those for which they were trained. Altogether close to 60 million Nigerians are involved. An astonishing number of Uber drivers are university graduates forced to earn their living by driving taxis.

    But, the greatest challenge Nigerians will face in the next two years will be the return of essential commodities. The longer it persists, the harder it will drive inflation. If care is not taken, we might be experiencing 30 per cent or more by the fourth quarter of this year. The worker’s take home pay which now cannot take him home, might not even get him to work if fuel scarcity kicks in.

    Thank God, this is not another military government under Buhari. Otherwise, history might repeat itself again. Our women might again be horse-whipped by young soldiers.