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Tag: Inflation

  • Nigeria’s inflation rate declines to 24.48% in January – NBS

    Nigeria’s inflation rate declines to 24.48% in January – NBS

    The National Bureau of Statistics (NBS), says Nigeria’s headline inflation rate declined to 24.48 per cent in January 2025,

    This is contained in the Consumer Price Index (CPI) rebased results released in Abuja on Tuesday.

    NAN reports that the headline inflation rate for December 2024 was 34.80 per cent.

    The Statistician-General (S-G) of the Federation, Adeyemi Adeniran, made the announcement at a news briefing on the CPI Rebased Results.

    The CPI is a key macroeconomic indicator that reflects the movement of aggregate price levels in a country and is expected to be rebased every five years.

    However,  in Nigeria, the last CPI rebasing was conducted in 2009.

    Adeniran emphasised the importance of rebasing the CPI regularly due to changes in consumption patterns over time, which necessitated an update of the items in the CPI basket.

    He said the rebasing was designed to ensure that Nigeria’s economic indicators accurately reflect the current structure of the economy, incorporating new and emerging sectors, updating consumption baskets, and refining data collection methods.

    Adeniran said part of the process of rebasing the CPI  included bringing the base year closer to the current period, from 2009 to 2024.

    The S-G gave a breakdown of the rebased CPI as follows.

    The All-Items Index, which is used to measure headline inflation for January 2025, was 110.7, resulting in a headline inflation rate of 24.48 per cent on a year-on-year basis.

    He said the increase was mainly driven by Food and Non-alcoholic Beverages, Restaurants and Accommodation Services and Transport.

    The  Food Index for January 2025 was 110.03, which resulted in a food inflation rate of 26.08 per cent on a year-on-year basis.

    Core Index, which is All-Items less farm produce and energy for January 2025, was 110.7,  which gave rise to a core Inflation rate of 22.59 per cent on a year-on-year basis.

    The urban inflation rate for January 2025 was 26.09 per cent, while the rural inflation rate was 22.15 per cent.

    Adeniran clarified that the CPI results do not indicate a reduction in the prices of goods and services in the market but rather measure the rate at which those prices were decreasing.

    “The policies of the government targeted to reduce inflation rate are still there. The government is committed to ensuring food is available to the populace and the purchasing power of citizens is enhanced.

    “So, the result is  not saying prices of goods and services have come down in the market but the rate of change between January 2024  and January 2025 is what inflation rate is all about.”

    He assured Nigerians that the results of the rebasing reflected the current inflationary pressures and recent household consumption patterns in the country.

    The S-G  listed some CPI improvements and introduction to the methodology to include  the transition to the latest version of the classification method.

    He said the Classification of Individual Consumption According to Purpose (COICOP) 2018 version was used, departing from the 1999 version of COICOP.

    According to him, the new version has 13 divisions, as against 12,  bringing in household expenditure on Insurance and Financial Services, which now has a weight of 0.5 per cent relative to the total household expenditure.

    Adeniran said another improvement was the exclusion of own-production, imputed rents, and gifted items from the aggregates used to come up with the weights.

    “This is because CPI is a monetary phenomenon, hence the computations should only include monetary expenditure.

    “Also implemented under this rebasing is the movement of expenditures on meals away from home to the appropriate divisional class.

    “These changes are quite significant and appropriately align expenditures to their respective classes, enabling price changes to be measured properly.”

  • Nigeria’s inflation rate could have risen to 42.81% – Cardoso

    Nigeria’s inflation rate could have risen to 42.81% – Cardoso

    The Central Bank of Nigeria has said that without its policy interventions, inflation  could have risen to 42.81 per cent in December 2024.

    The CBN Governor, Yemi Cardoso, made this known at the 2025 Monetary Policy Forum of the apex bank on Thursday in Abuja.

    The forum attracted ministers, heads of departments and agencies involved in economic matters, as well as private sector players.

    Cardoso also projected that diaspora remittances would increase to N31.787 trillion when the fourth quarter 2024 figures are released.

    He said that the CBN would continue to employ orthodox monetary policy measures to tackle inflation in 2025.

    “Counterfactual estimates suggest that without these decisive policy interventions, inflation could have reached 42.81 percent by Dec., 2024.

    “Throughout 2024, the CBN implemented several bold policy measures across six MPC meetings

    “These include raising the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50 per cent.

    “They also include increasing the Cash Reserve Ratio (CRR) of Other Depository Corporations (ODCs) by 1750 basis points to 50 per cent, and adjusting the asymmetric corridor around the MPR,” he said.

    He said that the CBN also undertook critical reforms to strengthen the financial system and ensure macroeconomic stability through a unified exchange rate window to enhance efficiency in the FX market.

    According to Cardoso, this reform yielded tangible results, with remittances through International Money Transfer Operators (IMTOs) rising 79.4 per cent in the first three quarters of 2024 to 4.18 billion dollars.

    He compared the figure to 2.33 billion dollars generated in the same period of 2023.

    He said that the CBN also cleared a backlog of foreign exchange commitments totaling seven billion dollars, restoring market confidence and improving FX liquidity.

    “We lifted restrictions on 41 items previously banned from access to the official FX market, a measure introduced in 2015.

    “We also introduced new minimum capital requirements for banks, effective by March 2026.

    “This is to strengthen the resilience and global competitiveness of Nigeria’s banking sector, positioning it to support the ambition of a one trillion-dollar economy,” Cardoso said.

    He listed other policy interventions to include the launch of the WIFI initiative under the National Financial Inclusion Strategy.

    He said that the initiative was designed to bridge the gender gap in financial access, empowering women through financial services, education, and digital tools.

    “There is also the recently launched Nigeria Foreign Exchange Code, marking a decisive step forward for integrity, fairness, transparency and efficiency in our FX market.

    “Built on six core principles, the FX code represents a binding commitment from the financial community to rebuild trust and inspire confidence.

    “These reforms reflect our commitment to creating an enabling environment for inclusive economic development,” he said.

    He, however, said that achieving macroeconomic stability required sustained vigilance and a proactive monetary policy stance..

    To tackle inflation in 20205, Cardoso said that ‘managing disinflation amidst persistent shocks required robust policies and also coordination between fiscal and monetary authorities.

    He said that such coordination would help to anchor expectations and maintain investor confidence.

    “Our focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship.

    “As we move forward into 2025, I am optimistic that we have turned a corner and that disinflation is within reach.

    “However, we must remain committed to bold, coordinated policy measures to consolidate our progress,” he said.

    Earlier, Mohammed Abdullahi, Deputy Governor Economic Policy of the CBN, said that the liberalisation of the foreign exchange market was a pivotal step towards unifying a highly fragmented system.

    Abdullahi said that the step also helped in reducing substantial premiums driven by speculative activities and market inefficiencies.

    “Prior to the adoption of a flexible exchange rate regime, the average exchange rate premium stood at an alarming 62.33 per cent between January and May 2023.

    “Wth the introduction of the flexible exchange rate regime, this premium was drastically reduced to an all-time low of 0.10 per cent by June 2023, signalling significant progress towards market convergence,” he said.

  • How Nigeria’s inflation rate increased in December – NBS

    How Nigeria’s inflation rate increased in December – NBS

    The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate increased to 34.80 per cent in December 2024.

    The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for December 2024, which was released in Abuja on Wednesday.

    According to the report, the figure is 0.20 per cent higher compared to the 34.60 per cent recorded in November 2024.

    The NBS said that the slight increase in the headline inflation on a month-on-month basis was due to increase in demand for goods and services during the festive season in December.

    It said that on a year-on-year basis, the headline inflation rate in December 2024 was 5.87 per cent higher than the rate recorded in December 2023 at 28.92 per cent.

    The report said on a month-on-month basis, the headline inflation rate in December 2024 was 2.44 per cent, which was 0.20 per cent lower than the rate recorded in November 2024 at 2.64 per cent.

    “This means that in December 2024, the rate of increase in the average price level was slightly lower than the rate of increase in the average price level in November 2024,” it said.

    The report noted the increase in the headline index for December 2024 on a year-on-year and month-on-month basis.

    It attributed the development to the increase in some items in the basket of goods and services at the divisional level.

    It said that these increases were observed in food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, clothing and footwear, transport and furnishings, household equipment and maintenance.

    It listed others to include education, health, and miscellaneous goods and services restaurants and hotels, alcoholic beverages, tobacco and kola, recreation and culture, and communication.

    The NBS report said that the percentage change in the average CPI for the 12 months ending December 2024 over the average CPI for the previous 12 months was 33.24 per cent.

    “This indicates an 8.58 per cent increase compared to 24.66 per cent recorded in December 2023,” it said.

    The report said the food inflation rate in December 2024 increased to 39.84 per cent on a year-on-year basis.

    According to the report, that was 5.91 per cent higher compared to the rate recorded in December 2023 at 33.93 per cent.

    “The rise in food inflation on a year-on-year basis is caused by increases in prices of yam, water yam, sweet potato, guinea com, maize grains, and rice.

    “Others are beer, pinto, dried fish (sardine), dried catfish, among others,it said.

    It said on a month-on-month basis, the food inflation rate in December was 2.66 per cent; indicating a 0.32 per cent decrease compared to2.98 per cent that was recorded in November 2024.

    “The decline in food inflation on a month-on-month basis can be attributed to the rate of decrease in the average prices of local beer, pinto, fruit juice in tin, and malt drinks.

    “Others are rice, millet, maize flour, water yam, Irish potatoes, cocoyam, among others,” it said.

    The report said that all items, excluding farm produce and energy. or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 29.28 per cent in December on a year-on-year basis.

    “This increased by 6.21 per cent compared to 23.06 per cent recorded in December 2023. The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy,” it said.

    It said that the highest increases were recorded in prices of taxi journey per drop, bus journey intercity, and journey by motorcycle.

    “Others are meal at a local restaurant, hair cut service, women’s hairdressing, women’s hair brush, women’s handbag, travelling bags, suitcases among others,”the report said.

    The NBS said on a month-on-month basis, the core inflation rate was 2.24 per cent in December 2024.

    “This indicates a 0.41 per cent increase compared to what was recorded in November 2024 at 1.83 per cent.

    “The average 12-month annual inflation rate was 27.15 per cent for the 12 months ending December 2024; this was 6.39 per cent points higher than the 20.76 per cent recorded in December 2023.”

    The report said on a year-on-year basis in December 2024, the urban inflation rate was 37.29 per cent. which was 6.30 per cent higher compared to the 31.00 per cent recorded in December 2023.

    “On a month-on-month basis, the urban inflation rate was 2.56 per cent, which decreased by 0.21 per cent compared to November 2024 at 2.77 per cent.”

    The report said on a year-on-year basis in December, the rural inflation rate was 32.47 per cent, which was 5.37 per cent higher compared to the 27.10 per cent recorded in December 2023.

    “On a month-on-month basis, the rural inflation rate was 2.32 per cent, which decreased by 0.19 per cent compared to November 2024 at 2.51 per cent.”

    On states profile analysis, the report showed that in December, all items’ inflation rate on a year-on-year basis was highest in Bauchi at 44.06 per cent, followed by Sokoto at 42.43 per cent, and Kebbi at 41.47 per cent.

    It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Katsina at 28.33 per cent, followed by Delta at 29.23 per cent, and Imo at 29.99 per cent.

    The report, however, said in December 2024, all items inflation rate on a month-on-month basis was highest in Kogi at 5.40 per cent, followed by Cross River at 4.38 per cent, and Sokoto at 4.29 per cent.

    “Yobe -1.82 per cent, followed by Kano at -0.57 per cent and Abuja at 0.02 per cent recorded the slowest rise in month-on-month inflation.”

    The report said on a year-on-year basis, food inflation was highest in Sokoto at 57.47 per cent, followed by Zamfara at 46.39 per cent, and Edo at 46.32 per cent.

    “Ogun at 34.24 per cent, followed by Rivers at 35.43 per cent and Kwara at 35.58 per cent recorded the slowest rise in food inflation on a year-on-year basis.”

    The report, however, said on a month-on-month basis, food inflation was highest in Kogi at 6.53 per cent, followed by Sokoto at 6.21 per cent, and Cross River at 5.90 per cent.

    “Yobe at -3.21 per cent, followed by Kano at -1.29 per cent and Abuja at -0.79 per cent, recorded the slowest rise in inflation on a month-on-month basis.”

  • Tinubu’s ‘POS economy’ can’t fight inflation – By Ikeddy Isiguzo

    Tinubu’s ‘POS economy’ can’t fight inflation – By Ikeddy Isiguzo

    By Ikeddy ISIGUZO

    TWICE in less than two weeks, President Bola Ahmed Tinubu has repeated his threat to crush inflation from 36.4 per cent to 15 per cent in 2025. His first attack on inflation was at his budget presentation at the National Assembly on 18 December 2024 and then in his New Year message on 1 January 2025.

    In both instances, he said his economic policies would push inflation down with 21 per cent. Those who thought they did not hear him well heard him repeat it in the New Year message.

    The summary of the presidential message, the Governors, and all those who have deemed it their role to send out similar messages, is abundant hope. The President never misses a chance to ask Nigerians to be patient with his policies. He accuses us of impatience without any proof.

    In his 18 months, Tinubu has made the banking system a Point Of Sale, POS, economy where banks no longer allow customers to withdraw cash under the guise of a cashless economy. The ATMs are without cash or configured to discharge an amount like N5,000. How do small businesses cope or people who have  to make small purchases?

    Cash is always available with the POS merchants whose extra charges import inflation into a transaction on which other  charges had been paid. Where else do POS merchants get cash except from the banks?

    Is availability of cash in banks against the economic policy of the government? How does the government expect low income earners and rural communities to bear these extra costs that it may not recognise as inflation?

    A proposed policy to limit cash one can access from POS merchants is not a solution. It is another wave of hardship on the way.

    These, according to experts, are the real drivers of inflation:

    .Government is wasting a lot of money in maintaining “a big bureaucracy” against official reports that have suggested cuts to wastes.

    .The increase in fuel prices following the removal of subsidy, cost of imported diesel which depends on value of Naira, constant raise in price of electricity, all translate to higher prices of food, energy, and transportation. Rising fuel prices cause increased fares for commuters, and goods. Currently, fuel has no fixed price, and it goes mostly up.

    .The continued drop in the value of the Naira is the lead driver of inflation and the impact runs through the  whole span of a highly import-dependent economy. Higher costs for machinery, fertilizers, and other inputs for farmers, result in higher food prices. Industries are also mired in increased costs for raw materials, machinery, most of which are imported. High production costs and prices that most consumers cannot afford are the results.

    .Insecurity lessens access to farms which means that even if food was produced, evacuating it faces increased challenges. Security has also affected transportation costs as people are using longer routes to avoid certain areas or travel by air.

    .Higher global oil prices, the falling Naira, and cost of imported fuel, all contribute to inflation. The arrival of Dangote Refinery was quickly followed by controversies that have not permitted its operations to be felt. Revamped government refineries in Port Harcourt and Warri, if they last, would take time to reduce the inflation that has hugged the economy.

    These situations have hit consumers and businesses really hard. Consumers barely have enough to buy basic needs while manufacturers that borrow from banks at outrageous interest rates find it more difficult to remain in business.

    High inflation rate makes savings useless. Earnings depreciate by the day as witnessed in the new national minimum wage that will leave workers almost worse than the situation they were in before the increase.

    Are these what Tinubu said he would tackle in a year? How would he do it in a government most of whose top officials may be available but unseen where issues that are their responsibilities are involved? Not many of them recognise service to the people as the purpose of their offices.

    They gloat over Tinubu’s presidency as if it is the conquest of those who demand governance and not just a regime change from Muhammadu Buhari to Tinubu.

    We should not be deceived. The year will be tougher than any we have been through. Governments have made provisions in their budgets to live above the circumstances that we are all complaining about. They do not feel what we feel.

    They have no feelings towards the people they are meant to serve. Retorts and rhetorics have become standard responses to mere questions about how our governments work for our benefit. It is none of their business to improve our lives.

    How would they understand how we feel when their own issues are covered in budgets? If they run out of money, they send in papers for a supplementary budget to fetch more money. In all cases, the supplementary budgets are passed with the urgency of an emergency.

    Tinubu is not about to attend to the drivers of inflation. He has ruled out chances that he would ever run a smaller government. The same can be said of his other indulgences.

    “Under the banner of the Renewed Hope Agenda, President Tinubu is dutifully turning our nation’s fortunes around. He deserves the support and patience of Nigerians to consolidate the deep economic foundation he has laid and deliver a vibrant, prosperous new Nigeria for the good of all. We urge Nigerians to remain confident in the brighter days ahead,” Felix Morka, National Publicity Secretary of the All Progressives Congress, APC, has advised those who want to know the direction of Tinubu’s presidency.

    Trite regurgitations like Morka’s lay to rest any expectation that Tinubu even listens to what the people feel. There is no chance that he would reduce inflation to 15 per cent as it would run contrary to his policy of not  caring about ordinary Nigerians.

    Finally…

    JUST as the Federal Government did not burden us with how it bundled Nnamdi Kanu into an aircraft in Nairobi to continue his trial in Abuja, it should not bother us with efforts to put Simon Ekpa on trial for the nuisance he has continued to be.

    THE 2025 budget would do with a lot of scrutiny. We should have a good look at the budget to cut wastes.

    DID you come across the advisory the Ministry of Foreign Affairs issued to Nigerians against travelling to Australia? Though it was a counter to one Australia issued to its people, it provided a good laugh. I look forward to the Ministry of Internal Affairs issuing advisories on how safe parts of Nigeria have become.

    NIGERIAN Television Authority devoted hours of live broadcast on Friday to Ezewoke Nyesom Wike, Minister of Federal Capital Territory, as his disciples turned out in their numbers to sing Wike’s praises, pledge loyalty to Wike, apologise to him for the comments Dr. Peter Odili made about him, and commend the great job he is doing in Abuja. One called him the Governor of Abuja, and they all called him leader. Wike was very happy, particularly, when the praises were about what he had done for the Ijaws, as articulated by the leader of an Ijaw group that apologised for the “ingratitude” of Governor Sim Fubara. This Port Harcourt event called New Year Luncheon is another Wike innovation.

    DEATHS were plentiful during the celebrations – poisoning, accidents, assassinations, murders, and then the incident of a Catholic priest firing shots that killed two people. Bandits still threaten whole villages and execute their threats without consequences. The body counts are too regular that they hardly make headlines these days. Nigeria is getting more dangerous. Someone should help.

    THERE are provisions of over N600m in the 2025 budget for provision of infrastructure for nine palaces of traditional rulers in Nigeria, the Nigerian Tribune reported. The allocated were spread thus – North East 1, North West 1, North Central 2, South West 3, South South 1, FCT 1, and South East 0. Our ancestors forbid that there are no palaces in the South East.

    HAPPY New Year. Let us make this year count as one in which we intentionally set out to seek our own good only in the race for the common good.

     

    ISIGUZO is a major commentator on minor issues

  • Tinubu’s 2025 budget projection: Inflation will reduce by15%, Dollar to N1,500

    Tinubu’s 2025 budget projection: Inflation will reduce by15%, Dollar to N1,500

    President Bola Tinubu has said that the 2025 budget forecasts that inflation will decline from current 34.6% to 15% next year.

    He said this during his presentation of the N47.9 trillion 2025 budget proposal to a joint session of the National Assembly on Wednesday.

    The President also said that the exchange rate will improve from approximately N1,700 per dollar to N1,500.

    According to Tinubu, this is an ambitious but necessary budget to secure our future.”

    “The Budget projects inflation will decline from the current rate of 34.6 per cent to 15 per cent next year, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira, and a base crude oil production assumption of 2.06 million barrels per day,”Tinubu said.

    He said the budget projections are based upon observations such as reduction of petroleum products importation, increased export of finished petroleum products, bumper harvest driven by enhanced security, reducing reliance on food imports, among others.

    Tinubu listed highlights of the budget to include defence and security – N4.91tn, infrastructure – N4.06tn, health – N2.4tn, education – N3.5tn, among others.

    Nigerians are grappling with economic hardship following incessant increase in inflation and volatile exchange rate that has seen dollar exchange as high as N1,700 in recent days.

    On Monday, the National Bureau of Statistics (NBS) said Nigeria’s headline inflation rate rose to 34.60% in November 2024 from 33.88% in October 2024.

    The November inflation rate showed an increase of 0.72% points compared to the October 2024 inflation rate, according to NBS’s latest Consumer Price Index (CPI) report which measures the rate of change in prices of goods and services.

    “On a year-on-year basis, the Headline inflation rate was 6.40% points higher than the rate recorded in November 2023 (28.20%). This shows that the Headline inflation rate (year-on-year basis) increased in November 2024 compared to the same month in the preceding year (i.e., November 2023),” the Bureau said.

    Significantly, food inflation rate in November 2024 was 39.93% on a year-on-year basis, 7.08% points higher than the rate recorded in November 2023 (32.84%).

  • BREAKING! Hunger rekindled as Nigeria’s inflation hits 34.6%

    BREAKING! Hunger rekindled as Nigeria’s inflation hits 34.6%

    Hunger rekindled as the National Bureau of Statistics says Nigeria’s inflation rate rose to 34.6 percentin November — up from 33.8 percent in October.

    In its consumer price index (CPI) report for November published on Monday, NBS said the rate represents an increase of 0.72 percent compared to the October 2024 rate.

    Details shortly…

  • CBN presents reason for worsening inflation in Nigeria

    CBN presents reason for worsening inflation in Nigeria

    The Central Bank of Nigeria (CBN), says rising food prices is partly responsible for worsening headline inflation in the country.

    Mr Yemi Cardoso, the Governor of  CBN, said this on Tuesday in Abuja, while presenting the communique from the 298th meeting of the apex bank’s Monetary Policy Committee (MPC).

    According to Cardoso, the MPC meeting held on the backdrop of renewed inflationary pressures, as the headline, food and core measures rose year-on-year in October.

    He said that the Committee was particularly concerned that all three measures also inched up on a month-on-month basis.

    He said that it suggested the persistence of price pressures, with attendant adverse impacts on income and welfare of citizens.

    ”Members, therefore, agreed unanimously to remain focused in addressing price developments.

    “Food prices remain a key contributor to the uptick, members commended the efforts of the Federal Government for the improved security, especially in the North-East of the country, which would likely improve food production ” he said.

    The CBN governor said that rising energy cost also played a role in the general price level due to its impact on factors of production.

    “The recent increase in the price of Premium Motor Spirit (PMS) has also impacted the cost of production and distribution of food items and manufactured goods.

    “The committee is optimistic that the full deregulation of the downstream sub-sector of the petroleum industry will eliminate scarcity and stabilise price levels in the short to medium term.

    “Members, thus, reiterated the need to strongly forge ahead with the deepening collaboration between the monetary and fiscal authorities.

    “This is to ensure the achievement of our synchronised objectives of price stability and sustainable growth,” Cardoso said.

    He, however, said that there was an improvement in the external sector, reflected by the increase in the current account surplus, enhanced remittance and capital inflows. He said that they had impacted the external reserves positively.

    “This, therefore, suggests that key policy measures by both thmonetary and fiscal authorities are yielding the desired outcomes.

    ”Members, however, expressed concern over persisting exchange rate pressure, reflecting continued high demand in the market.

    ”Consequently, the MPC urged the apex bank to explore measures to boost market liquidity,” he said.

    The MPC continued its inflation targeting measure by further hiking the Monetary Policy Rate (MPR), which is the baseline interest rate. It, however, retained all other monetary policy parameters.

    The committee raised the MPR by 25 basis points to 27.50 per cent from 27.25 per cent, and retained the asymmetric corridor around the MPR at +500/-100 basis points.

    It also retained the Cash Reserve Ratio (CRR) of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16 per cent, and retained the Liquidity Ratio at 30.00 per cent.

  • Inflation rate in Nigeria rises to 33.88%

    Inflation rate in Nigeria rises to 33.88%

    The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate increased 33.88  per cent in October 2024. The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for October 2024, which was released in Abuja on Friday.

    According to the report, the figure is 1.18 per cent points higher compared to the 32.70  per cent recorded in September 2024. It said on a year-on-year basis, the headline inflation rate in October  2024 was 6.55 per cent higher than the rate recorded in October 2023 at 27.33 per cent.

    In addition, the report said on a month-on-month basis, the headline inflation rate in October 2024 was 2.64  per cent, which was 0.12 per cent higher than the rate recorded in September 2024 at 2.52 per cent.

    “This means that in October 2024, the rate of increase in the average price level was higher than the rate of increase in the average price level in September 2024.”

    The report said the increase in the headline index for October 2024 on a year-on-year and month-on-month basis was attributed to the increase in some items in the basket of goods and services at the divisional level.

    It said these increases were observed in food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, clothing and footwear, transport and furnishings, household equipment and maintenance.

    Others include education, health, and miscellaneous goods and services,  restaurants and hotels, alcoholic beverages, tobacco and kola,  recreation and culture, and communication.

    It said the percentage change in the average CPI for the 12 months ending October 2024 over the average CPI for the previous 12 months was 32.26  per cent.

    “This indicates an 8.82  per cent increase compared to 23.44 per cent recorded in October 2023.”

    The report said the food inflation rate in October 2024 increased to  39.16 per cent on a year-on-year basis, which was 7.64  per cent higher compared to the rate recorded in October 2023 at 31.52 per cent.

    “The rise in food inflation on a year-on-year basis is caused by increases in prices of guinea corn, rice, maize grains, beans, yam, water yam, and CocoYam. Others are palm oil, vegetable oil, Lipton, Milo, and Bournvita, among others.”

    It said on a month-on-month basis, the food inflation rate in October was 2.94  per cent, which was a 0.30 per cent increase compared to the rate recorded in September 2024 at  2.64  per cent.

    “The increase in food inflation on a month-on-month basis was caused by an increase in the average prices of palm oil, vegetable oil, mudfish, croaker,  fresh fish, dried beef, goat meat, mutton, and skin meat. Others are bread, guinea corn flour, plantain flour, rice, among others.”

    The report said that “all items less farm produce and energy’’ or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 28.37  per cent in October on a year-on-year basis.

    “This increased by 5.79 per cent compared to 22.58  per cent recorded in October 2023. The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy.”

    It said the highest increases were recorded in prices of bus Journey within the city, Journey by motorcycle, and bus journey intercity among others.

    “Others are rents, meal at a local Restaurant, hair cut service, woman hair brush, women’s hairdressing, among others.”

    The NBS said on a month-on-month basis, the core inflation rate was 2.14 per cent in October 2024.

    “This indicates a 0.04  per cent increase compared to what was recorded in September 2024 at 2.10  per cent. The average 12-month annual inflation rate was 26.12 per cent for the 12 months ending October 2024; this was 6.14 per cent points higher than the 19.98  per cent recorded in October 2023.”

    The report said on a year-on-year basis in October 2024, the urban inflation rate was 36.38  per cent, which was 7.09 per cent higher compared to the 29.29 per cent recorded in October 2023.

    “On a month-on-month basis, the urban inflation rate was 2.75 per cent, which increased by 0.08 per cent compared to September 2024 at 2.67 per cent.’’

    The report said on a year-on-year basis in October, the rural inflation rate was 31.59 per cent, which was 6.01 per cent higher compared to the 25.58 per cent recorded in October 2023.

    “On a month-on-month basis, the rural inflation rate was 2.53 per cent, which increased by 0.14 per cent compared to September 2024 at 2.39 per cent.’’

    On states’ profile analysis, the report showed that in October, all items’ inflation rate on a year-on-year basis was highest in Bauchi at 46.68 per cent, followed by Kebbi at 40.02per cent, and Sokoto at 39.65 per cent.

    It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Delta at 27.85 per cent, followed by Benue at 28.22 per cent, and Katsina at 29.59 per cent.

    The report, however, said in October 2024, all items inflation rate on a month-on-month basis was highest in Kano at 3.77 per cent, followed by Bauchi at 3.74 per cent, and Anambra at 3.59 per cent.

    “Kwara at 1.27 per cent, followed by Ondo  at 1.49 per cent and Lagos at 1.91 per cent recorded the slowest rise in month-on-month inflation.”

    The report said on a year-on-year basis, food inflation was highest in Sokoto at 52.18 per cent, followed by Edo at 46.55 per cent, and Borno at 45.85 per cent.

    “Kwara at 31.68 per cent, followed by Kogi at 33.30  per cent and Rivers at 33.87  per cent recorded the slowest rise in food inflation on a year-on-year basis.’’

    The report, however, said on a month-on-month basis, food inflation was highest in Adamawa at 5.08 per cent, followed by Sokoto at 4.86 per cent, and Yobe at 4.34 per cent.

    “Kwara at 1.11 per cent, followed by Ondo at 1.31 per cent and Kogi at 1.50 per cent, recorded the slowest rise in inflation on a month-on-month basis.”

  • Dynamics driving inflation yet to be subdued – CPPE

    Dynamics driving inflation yet to be subdued – CPPE

    Centre for the Promotion of Private Enterprises (CPPE) says factors driving inflation dynamics have yet to be effectively subdued, hence the resurgence in the country’s inflationary figure.

    Founder, CPPE, Dr Muda Yusuf, said this while reacting to the September inflation on Tuesday in Lagos.

    The National Bureau of Statistics (NBS) said that the nation’s inflation stood at  32.70 per cent in September from 32.15 per cent in August.

    Yusuf said factors such as depreciating exchange rate, surging fuel price, rising transportation costs, logistics and supply chain challenges, high energy cost, flooding, insecurity and structural bottlenecks impacted the country’s inflation rate.

    He noted that while these were largely supply-side issues, there was also the factor of seasonality of agricultural outputs which activates seasonal price surge in some food crops.

    He said that elevated inflationary pressures escalated production costs, weakend profitability, and dampened investors’ confidence.

    “It is troubling that we are witnessing a resurgence of high inflationary pressures after some few months of respite in spite of policy measures to tame inflation, especially on the monetary side.

    “Purchasing power had continued to plunge over the past few months and the situation had been further exacerbated by the surging petrol price.

    “Not many investors can transfer cost increases to their consumers.

    “The implication is that manufacturers and other investors are taking a big hit resulting from erosion of profit margins as a result of consumer resistance and weak purchasing power,” he said.

    Yusuf stressed that tackling inflation required urgent government intervention to address the challenges inhibiting production, productivity and security in the economy.

    He said that the real sector of the economy must be incentivised to reduce production costs.

    He added that government needed to offer concessionary import duty on intermediate products for industrialists.

    This, Yusuf said, was because the effects of high energy cost and exchange rate on inflation was quite significant.

    “It will be very difficult to tame inflation if we do not substantially fix power, logistics, foreign exchange and security issues.

    “Regrettably, there are no quick fixes in these area but it is important to prioritise these issues and drive accelerated progress with the right strategies.

    “Hopefully the proposed economic stabilisation measures embodied in a bill currently before the national assembly would substantially address these concerns from the fiscal side,” he said.

    Yusuf also charged sub nationals to play their critical roles in mitigating the challenge of food insecurity and food inflation.

    According to him, they are closer to the stakeholders in the agricultural and food value chain and better placed to impact agricultural productivity.

    He said that the provision of rural roads by the states was critical to reduce transportation costs and ease access to markets.

  • FG unveils new scheme to control inflation

    FG unveils new scheme to control inflation

    The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has unveiled an ambitious agenda for economic reform to reduce inflation, create jobs, and foster growth in key sectors.

    Edun said this at the 30th Nigeria Economic Summit (NES30), in Abuja on Tuesday. He said that government was focused on agriculture, manufacturing, oil, and housing as vital drivers of Nigeria’s economy.

    He said that the intention was to tackle poverty by enhancing agricultural productivity and food security, which is essential to lowering the high inflation rate.

    Edun said that the government was partnering with the African Development Bank (AfDB) to establish agricultural processing zones, which would provide a robust supply of raw materials for domestic industries.

    He said that the government would also address housing affordability, launching a mortgage scheme tjat would offer near-single-digit interest rates on loans spanning up to 25 years.

    “This initiative aims to spark a construction boom by increasing access to affordable housing, a critical area for job creation and economic growth.

    “In partnership with the private sector, we are delivering mortgages that will support Nigeria’s housing and real estate sector,” the minister said.

    He said that the recent reforms had attracted significant investments, including an additional 10 million dollars from ExxonMobil and other key industry players.

    “The oil sector is our first avenue for foreign exchange and global revenue,” he said.

    Edun said that manufacturing would also benefit from new tax incentives and cheaper funding.

    He said that this policies were designed to cut operational costs and increase job opportunities within the sector.

    “We are offering specific incentives, including excise tax and withholding tax reliefs, to stimulate the manufacturing sector,” he said.

    He said that these measures had encouraged Nigerian manufacturers to invest in the country’s economic prospects.