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Tag: Inflation

  • Rising inflation rate in Nigeria hits 27.33%

    Rising inflation rate in Nigeria hits 27.33%

    The National Bureau of Statistics (NBS) said Nigeria’s headline inflation rate increased to 27.33 per cent in October 2023.

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

    According to the report, the figure, which is 0.61 per cent points higher compared to 26.72 per cent recorded in September 2023.

    It said on a year-on-year basis, the headline inflation rate in October was 6.24 per cent higher than the rate recorded in October 2022 at 21.09 per cent.

    The report said the increase in the headline index for October 2023 on a year on year 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 at 14.16 per cent and housing, water, electricity, gas, and other fuel at 4.57 per cent.

    Others were clothing and footwear at 2.09 per cent; transport at 1.78 per cent; furnishings, household equipment and maintenance at 1.37 per cent, education at 1.08 per cent, and health at 0.82 per cent.

    It added, “Miscellaneous goods and services at 0.45 per cent; restaurant and hotels at 0.33 per cent; alcoholic beverage, tobacco and kola at 0.30 per cent; recreation and culture at 0.19 per cent, and communication at 0.19 per cent.”

    In addition, the report said, on a month-on-month basis, the headline inflation rate in October 2023 was 1.73 per cent, which was 0.37 per cent lower than the rate recorded in September 2023 at 2.10 per cent.

    It said, ” This means that in October 2023, the rate of increase in the average price level is less than the rate of increase in the average price level in September 2023.

    It said the percentage change in the average CPI for the 12 months ending October 2023 over the average of the CPI for the previous corresponding 12-month period was 23.44 per cent.

    “This indicates a 5.57 per cent increase compared to 17.86 per cent recorded in October 2022.”

    The report said the food inflation rate in October increased to 31.52 per cent on a year-on-year basis, which was 7.80 per cent higher compared to the rate recorded in October 2022 at 23.72 per cent.

    It added, “The rise in food inflation on a year on year basis is caused by increases in prices of oil and fats, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetable, milk, cheese and eggs. ”

    It said on a month-on-month basis, the food inflation rate in October was 1.91per cent, which was a 0.54 per cent drop compared to the rate recorded in September 2023 at 2.45 per cent.“

    The report added, “The decline in food inflation on a month-on-month basis was caused by a decrease in the average prices of fruits, oil and fats, coffee, tea and cocoa, bread and cereals. ”

    It said the “All items less farm produce and energy’’ or core inflation, which excluded the prices of volatile agricultural produce and energy, stood at 22.58 per cent in October on a year-on-year basis.

    “This increased by 5.12 per cent compared to 17.46 per cent recorded in October 2022.

    “The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy,” the report continued.

    It said the highest increases were recorded in prices of passenger transport by road, medical services, passenger transport by air, actual and imputed rentals for housing, pharmaceutical products etc.

    The NBS said on a month-on-month basis, the core inflation rate was 1.39 per cent in October 2023.

    The report added, “This indicates a 0.83 per cent drop compared to what was recorded in September 2023 at 2.22 per cent.

    “The average 12-month annual inflation rate was 19.98 per cent for the 12 months ending October 2023, this was 4.60 per cent points higher than the 15.38 per cent recorded in October 2022.”

    The report said on a year-on-year basis in October, the urban inflation rate was 29.29 per cent, which was 7.66 per cent higher compared to the 21.63 per cent recorded in October 2022.

    It said, “On a month-on-month basis, the urban inflation rate was 1.81 per cent in October representing a 0.43 per cent decline compared to September 2023 at 2.24 per cent.

    The report said on a year-on-year basis in October, the rural inflation rate was 25.58 per cent, which was 5.01 per cent higher compared to the 20.57 per cent recorded in October 2022.

    “On a month-on-month basis, the rural inflation rate was 1.67 per cent, which decreased by 0.29 per cent compared to September 2023 at 1.96 per cent.’’

    On states’ profile analysis, the report showed in October, all items inflation rate on a year-on-year basis was highest in Kogi at 34.20 per cent, followed by Rivers at 31.44 per cent, and Lagos at 31.33 per cent.

    It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Borno at 20.06 per cent, followed by Jigawa at 23.52 per cent, and Sokoto at 24.47 per cent.

    The report, however, said in October 2023, all items inflation rate on a month-on-month basis was highest in Yobe at 3.72 per cent, Jigawa at 2.85 per cent, and Sokoto at 2.84 per cent.

    “Kogi at 1.01 per cent, followed by Edo at 1.05 per cent and Kwara at 1.18 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 Kogi at 41.74 per cent, followed by Kwara at 38.48 per cent, and Lagos at 37.37 per cent.

    “Borno at 24.41 per cent, followed by Kebbi at 24.90 per cent and Jigawa at 25.10 per cent recorded the slowest rise in food inflation on a year-on-year basis,”it added.

    The report, however, said on a month-on-month basis, food inflation was highest in Yobe at 5.35 per cent, followed by Sokoto at 3.68 per cent and Jigawa at 3.45 per cent.

    It said, “With Edo at 0.95 per cent, followed by Katsina at 1.03 per cent and Rivers at 1.10 per cent recorded the slowest rise on month-on-month food inflation.’’

  • How Buhari fuelled inflation, weakened value of Naira – Sanusi

    How Buhari fuelled inflation, weakened value of Naira – Sanusi

    Former Governor of the Central Bank of Nigeria (CBN), Muhammad Sanusi II has opened up on how former President Muhammadu Buhari triggered inflationary pressure in Nigeria and weakened the value of the Naira.

    TheNewsGuru.com (TNG) reports Sanusi to have said CBN’s lending to the federal government under the administration of former President Buhari through Ways and Means triggered inflationary pressure and weakened the value of the Naira.

    Speaking in Abuja on Tuesday at a two-day Premier Capital Markets Day Event organised by MTN, the former CBN Governor said Buhari’s 8 years saw the rapid expansion of the apex bank’s balance sheet through ways and means.

    The 14th Emir of Kano said the CBN has, however, embarked on aggressive monetary tightening through various liquidity control instruments, including open market operations, Open Buy Back (OBB) and high T-bills rates, which Sanusi said is an indication that the bank was sticking to its core mandate of financial systems stability and inflation control.

    “I am optimistic, especially in the short term. We’ve had eight years of rapid expansion of the central bank’s balance sheet through ways and means. And that has fueled inflation and weakened the currency. And that is the fact.

    “If you look at OMO Bills and OBB rates in the last few weeks, I can see that the central bank has started a process of aggressive tightening. OBB rates are beginning to approach what they should be. And I think that’s what the market needs to look at; that the central bank is taking this role of tightening money and fighting inflation as a primary focus.

    “For the short term, I don’t think we have a problem. I think the central bank is doing the right thing – tightening money, clearing the backlog, trying to fund the market, and I think we will have stability,” Sanusi II said.

    TNG reports Ways and Means is a way in which the federal government raises funds by borrowing from the CBN.  The CBN’s loan to the federal government hit N22.7 trillion, an amount the CBN said had been securitised not to dampen its balance sheet.

    Speaking earlier at the event, CBN Governor, Olayemi Cardoso, represented by Director in charge of Research Department, Dr Omolara Duke, said the bank would return to its primary role of price stability.

    Cardoso said “The Ways and Means will no longer be more than five percent, going forward. The period for the government to access Ways and Means is over” while adding that the central bank was looking at how to drive down the cost of remittances to increase the inflow and move them away from the informal sector into the formal.

    Telecom sector contributes 16% to Nigeria’s GDP – MTN

    Meanwhile, the Chairman of MTN Nigeria, Dr Ernest Ndukwe disclosed at the event that the telecom sector now contributes over 16 per cent to Nigeria’s Gross Domestic Product (GDP).

    According to Dr Ndukwe, in pursuant to MTN’s vision 2025 strategy, the company had evolved from telecom to technology business, adding that it assured on building connectivity business while expanding its focus on platform businesses.

    Ndukwe said that as the digital ecosystem continued to grow, MTN’s impact on the nation’s economy would continue to increase.

    “MTN remains the largest network operator in Nigeria, and we recognise the enormous responsibility bestowed on us to continue to deliver world class ICT services to the people that patronise our services.

    “We aalso seize strong oopportunities or growth in both our voice and data businesses as we work to increase our market permutations on geographical coverage.

    “Our customers and their desires are the heart everything we do and plan for the future of the business. We are proud to say that the MTN ecosystem has directly or indirectly created employment for more that two million people, while supporting the livelihood of people across the country.

    “We are fully committed to working with our partners and the Nigerian government to ensure that Nigeria’s digital economy has its full potential on customers and stakeholders,” he said.

    In his remarks, the Chief Executive Officer (CEO) of MTN Nigeria, Mr Karl Toriola, expressed optimism that  the economic challenges of the country were gradually coming to an end.

    Toriola called on the stakeholders to enjoy the experience of the programme.

    Mr Timi Popoola, CEO of Nigeria Exchange Limited, said the event would make both local and foreign investors stay close to the country, adding that it deepened interactions with MTN.

    Popoola said that a sort code of *5474# was launched by MTN  in order to get a bouquet of options, which include: opening and closing prices of any security listed on the exchange.

    “We hope that this is the first step of using a tool like this to invest in a capital market,” he said.

  • Nigeria’s inflation rate hits 26.72%

    Nigeria’s inflation rate hits 26.72%

    The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate increased to 26.72 per cent in September 2023.

    The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for September, released in Abuja on Monday.

    According to the report, the figure, which is 0.92 per cent points higher compared to the 25.80 per cent recorded in August 2023.

    It said on a year-on-year basis, the headline inflation rate in September was 5.94 per cent higher than the rate recorded in September 2022 at 20.77 per cent.

    The report said the increase in the headline index for September 2023 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 at 13.84 per cent and housing, water, electricity, gas, and other fuel at 4.47 per cent.

    Others were clothing and footwear at 2.04 per cent; transport at 1.74 per cent; furnishings, household equipment and maintenance at 1.34 per cent, education at 1.05 per cent, and health at 0.80 per cent.

    “Miscellaneous goods and services at 0.44 per cent; restaurant and hotels at 0.32 per cent; alcoholic beverage, tobacco and kola at 0.29 per cent; recreation and culture at 0.18 per cent, and communication at 0.18 per cent.”

    In addition, the report said, on a month-on-month basis, the headline inflation rate in September 2023 was 2.10 per cent, which was 1.08 per cent lower than the rate recorded in August 2023 at 3.18 per cent.

    “This means that in September 2023, the average price level decreased by 1.08 per cent compared to August 2023.”

    It said the percentage change in the average CPI for the 12 months ending September 2023 over the average of the CPI for the previous corresponding 12-month period was 22.90 per cent.

    “This indicates a 5.47 per cent increase compared to 17.43 per cent recorded in September 2022.”

    The report said the food inflation rate in September increased to 30.64 per cent on a year-on-year basis, which was 7.30 per cent higher compared to the rate recorded in September 2022 at 23.34 per cent.

    “The rise in food inflation is caused by increases in prices of oil and fats, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetable, milk, cheese and eggs. ”

    It said on a month-on-month basis, the food inflation rate in September was 2.45 per cent, which was a 1.41 per cent drop compared to the rate recorded in August 2023 at 3.87 per cent.

    “The decline in food inflation on a month-on-month basis was caused by a decrease in the average prices of bread and cereals, potatoes, yam and other tubers, bread, and fruits and fish. ”

    The report said the “All items less farm produce’’ or core inflation, which excludes the prices of volatile agricultural produce and petroleum motor spirit stood at 21.84 per cent in September on a year-on-year basis.

    “This increased by 4.35 per cent compared to 17. 49per cent recorded in September 2022.’’

    “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 passenger transport by air and road, medical services, maintenance, and repair of personal transport equipment, etc.

    The NBS said on a month-on-month basis, the core inflation rate was 2.22 per cent in September 2023.

    “This indicates a 0.05 per cent rise compared to what was recorded in August 2023 at 2.18 per cent.”

    “The average 12-month annual inflation rate was 19.55 per cent for the 12 months ending September 2023, this was 4.48 per cent points higher than the 15.07 per cent recorded in September 2022.”

    The report said on a year-on-year basis in September, the urban inflation rate was 28.68 per cent, which was 7.43 per cent higher compared to the 21.25 per cent recorded in September 2022.

    “On a month-on-month basis, the urban inflation rate was 2.24 per cent in September representing a 1.05 per cent decline compared to August 2023 at 3.29 per cent.’’

    The report said on a year-on-year basis in September, the rural inflation rate was 24.94 per cent, which was 4.62 per cent higher compared to the 20.32 per cent recorded in September 2022.

    “On a month-on-month basis, the rural inflation rate was 1.96 per cent, which decreased by 1.12 per cent compared to August 2023 at 3.08 per cent.’’

    On states’ profile analysis, the report showed in September, all items inflation rate on a year-on-year basis was highest in Kogi at 32.95 per cent, followed by Rivers at 30.63 per cent, and Lagos at 30.04 per cent.

    It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Borno at 21.05 per cent, followed by Jigawa at 22.39 per cent, and Benue at 23.22 per cent.

    The report, however, said in September 2023, all items inflation rate on a month-on-month basis was highest in Taraba at 3.39 per cent, Bauchi at 3.38 per cent, and Niger at 3.28 per cent.

    “Borno at 0.71 per cent, followed by Ekiti at 1.05 per cent and Benue at 1.13 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 Kogi at 39.37 per cent, followed by Rivers at 35.95 per cent and Lagos at 35.66 per cent.

    “Jigawa at 23.41 per cent, followed by Borno at 25.29 per cent and Sokoto at 25.38 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 Akwa Ibom at 4.23 per cent, followed by Niger at 4.19 per cent and Ebonyi at 3.74 per cent.

    “With Cross River at 0.31 per cent, followed by Borno at 0.62 per cent and Bayelsa at 0.73per cent recorded the slowest rise on month-on-month food inflation.’’

  • World Food Day: FAO urges measures for food security amid rising inflation

    World Food Day: FAO urges measures for food security amid rising inflation

    As Nigeria grapples with soaring inflation rates, the Director-General of the Food and Agriculture Organisation (FAO) of the United Nations, Qu Dongyu, has urged governments to prioritize water in policy and planning, as there can be no food security without water.

    Dongyu gave the advice on Monday at the World Food Day 2023 ceremony, held at the FAO headquarters in Rome, Italy, with the theme ‘Water is life, water is food. Leave no one behind’.

    “Innovative solutions need to be co-developed with partners, including the private sector. We also need to significantly increase investments in integrated water resources management and infrastructure.

    “Countries need to produce more food with less water while restoring land and water systems, and at the same time ensure equitable access to water, and increased resilience to extreme weather events,” he said.

    The Director-General outlined key actions required to achieve Sustainable Development Goals (SDGs) related to water and food security.

    These include strengthening partnerships, co-developing innovative solutions, increasing investments in integrated water resources management and infrastructure, producing more food with less water, and engaging the private sector as water stewards.

    Meanwhile, recent figures released by the National Bureau of Statistics (NBS) shows that Nigeria’s headline inflation rate on a year-on-year basis surged to 26.72 per cent in September, from the previous month’s rate of 25.80 per cent.

    The rise in headline inflation is attributed to various factors, including increases in the prices of Food and non-alcoholic Beverages (13.84 per cent), Housing, Water, Electricity, Gas and other Fuel (4.47 per cent), Clothing and Footwear (2.04 per cent), Transport (1.74 per cent), and others.

    The Food sub-index also witnessed a year-on-year increase of 30.64 per cent in September, fueled by escalating prices of essential items like Oil and fat, Bread and cereals, Potatoes, Yam and other Tubers, Fish, Fruit, Meat, Vegetables, and more.

    The rising inflation rates in Nigeria, particularly in essential food items, calls for urgent and concerted efforts to mitigate its impact on the availability and affordability of food for the population.

  • NBS report reveals alarming surge in prices of food items

    NBS report reveals alarming surge in prices of food items

    The National Bureau of Statistics (NBS) has released its Selected Food Prices Watch report for August 2023, showing an alarming surge in the costs of essential food items across the country.

    Garri, a staple for many Nigerians, increased by 49.16 per cent from N305.92 in August 2022 to N456.32 in August 2023, while 1kg of local rice, rose by 62.68 per from N454.10 in August 2022 to N738.74 in August 2023.

    The report also revealed a sharp increase in the average price of 1kg of boneless beef by 30.75 per cent, surging from N2,141.18 in August 2022 to N2,799.51 in August 2023.

    Yam prices surged with a 42.80 per cent increase from N403.65 in August 2022 to N576.39 in August 2023, while the price of brown beans, witnessed a 27 per cent rise from N545.61 in August 2022 to N692.95 in August 2023.

    The trend continued in other essential food items like palm oil, which saw a rise of 38.13 per cent year-on-year, reaching N1,238.56 in August 2023 from N896.63 in August 2022.

    Taking a closer look at the variations across states, the report showed distinct disparities in food prices.

    Anambra stood out with the highest average price of 1kg of boneless beef at N3,790.02, while Kogi reported the lowest at N1,835.71. Ondo reported the highest average price of 1kg of local rice at N903.26, with Benue reporting the lowest at N529.72.

    In the case of brown beans, Imo reported the highest average price at N1,087.14, whereas Kogi had the lowest at N480.34. Lagos had the highest average price of 1kg of onion bulb at N847.83, while Kano state reported the lowest at N300.46.

    As for yam prices, Akwa Ibom witnessed the highest average price at N1,030.71, contrasting with Adamawa which had the lowest at N328.71. Palm oil prices also showed considerable variations, with Ogun recording the highest average price of 1 litre at N1,525.49 and Kwara revealing the lowest at N920. Cross River recorded the highest average price of garri at N574.32, with Kwara noting the lowest at N336.64.

  • Nigeria’s inflation rate hits 25.80%

    Nigeria’s inflation rate hits 25.80%

    The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate increased to 25.80 per cent in August 2023.

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

    According to the report, the figure, which  is 1.72 per cent points higher compared to the 24.08 per cent recorded in July 2023.

    It said on a year-on-year basis, the headline inflation rate in August was 5.27 per cent higher than the rate recorded in August 2022 at 20.52 per cent.

    “This shows that the headline inflation rate (year-on-year basis) increased in August 2023 when compared to the same period in August 2022.”

    The report said the contributions of items on the divisional level to the increase in the headline index are food and non-alcoholic beverages at 13.36 per cent and housing, water, electricity, gas, and other fuel at 4.32 per cent.

    Others were clothing and footwear at 1.97 per cent; transport at 1.68 per cent; furnishings, household equipment and maintenance at 1.30 per cent education at 1.02 per cent, and health at 0.78 per cent.

    “Miscellaneous goods and services at 0.43 per cent; restaurant and hotels at 0.31 per cent; alcoholic beverage, tobacco and kola at 0.28 per cent; recreation and culture at 0.18 per cent, and communication at 0.18 per cent.”

    In addition, the report said, on a month-on-month basis, the headline inflation rate in August 2023 was 3.18 per cent, which was 0.29 per cent higher than the rate recorded in July 2023 at 2.89 per cent.

    ” This means that in August 2023, on average, the general price level was 0.29 per cent higher relative to July 2023.”

    It said the percentage change in the average CPI for the 12 months ending August 2023 over the average of the CPI for the previous 12-month period was 22.38 per cent.

    “This indicates a 5.31 per cent increase compared to 17.07 per cent recorded in August 2022.”

    The report said the food inflation rate in August was 29.34 per cent on a year-on-year basis, which was 6.22 per cent higher compared to the rate recorded in August 2022 at 23.12 per cent.

    “The rise in food inflation is caused by increases in prices of oil and fats, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetable, milk, cheese and eggs. ”

    It said on a month-on-month basis, the food inflation rate in August was 3.87 per cent, which was a 0.41 per cent rise compared to the rate recorded in July at 3. 45 per cent.

    “The rise in food inflation on a month-on-month basis was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, fish, oil, and fat, coffee, tea and cocoa”

    The report said the “All items less farm produce’’ or core inflation, which excludes the prices of volatile agricultural produce stood at 21.15 per cent in August on a year-on-year basis.

    “This increased by 4.03 per cent compared to 17.12 per cent recorded in August 2022.’’

    It said the highest increases were recorded in prices of passenger transport by air and road, gas, vehicle spare parts, medical services, maintenance, and repair of personal transport equipment, etc.

    The NBS said on a month-on-month basis, the core inflation rate was 2.18 per cent in August 2023.

    “This indicates a 0.07 per cent rise compared to what was recorded in July 2023 at 2.11 per cent.”

    “The average 12-month annual inflation rate was 19.18 per cent for the 12 months ending August 2023, this was 4.38 per cent points higher than the 14.80 per cent recorded in August 2022.”

    The report said on a year-on-year basis in August, the urban inflation rate was 27.69 per cent, which was 6.73 per cent higher compared to the 20.95 per cent recorded in August 2022.

    “On a month-on-month basis, the urban inflation rate was 3.29 per cent in August representing a 0.24 per cent rise compared to July 2023 at 3.05 per cent.’’

    The report said on a year-on-year basis in August, the rural inflation rate was 24.10 per cent, which was 3.98 per cent higher compared to the 20.12 per cent recorded in August 2022.

    “On a month-on-month basis, the rural inflation rate was 3.08 per cent, which increased by 0.34 per cent compared to July 2023 at 2.74 per cent.’’

    On states’ profile analysis, the report showed in August, all items inflation rate on a year-on-year basis was highest in Kogi at 31.50 per cent, followed by Lagos at 29.17 per cent, and Rivers at 29.06 per cent.

    It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Sokoto at 20.91 per cent, followed by Borno at 21.77 per cent, and Nasarawa at 22.25 per cent.

    The report, however, said in August 2023, all items inflation rate on a month-on-month basis was highest in Kwara at 6.07 per cent, Osun at 4.36 per cent, and Kogi at 4.35 per cent.

    “Sokoto at 1.38 per cent, followed by Borno at 1.73 per cent and Ogun at 1.89 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 Kogi at 38.84 per cent, followed by Lagos at 36.04 per cent, and Kwara at 35.33 per cent.

    “Sokoto at 20.09 per cent, followed by Nasarawa at 24.35 per cent and Jigawa at 24.53 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 Rivers at 7.12 per cent, followed by Kwara at 5.89 per cent and Kogi at 5.80 per cent.

    “With Sokoto at 0.50 per cent, followed by Abuja at 1.30 per cent and Niger at 1.40 per cent recorded the slowest rise on month-on-month food inflation.’’

  • Hunger and anger in the homeland – By Hope Eghagha

    Hunger and anger in the homeland – By Hope Eghagha

    There is hunger in the land. Real hunger. The is food and food everywhere. But majority of our citizens cannot afford to feed three times daily. Inflation is eroding the purchasing power of the naira. Transportation costs have gone up. The costs of medications have gone up. Incomes have not gone up. It is cheap to die; it is also expensive to die. A paradox. A little emergency could take one’s life. Organ failure, expensive to treat, can take one’s life too. People are starving. I do not refer to quality of feeding. I am concerned that there are too many people who are now compelled to go through days without meals. It has led to executive begging. It has created parents who cannot provide meals for their kids. Parents losing moral authority because they lack what it takes to make them the real head of the family. And the cause of this socio-economic tornado is Government, our own equivalent of a natural disaster.

    One of the real worries is that we have a federal government that does not care, that does not connect with the people. We are dealing with a government that is so distant that it proposes to distribute eight thousand naira to the poorest people. Eight thousand naira in present day Nigeria? Eight thousand naira cannot feed a family for two days. Is this what a government is bragging about, thumping its chest in empty vanity?

    We are dealing with state governors who do not really care about the citizens. State governors who are more interested in dishing out political patronage than dealing with the hopelessness that is gradually enveloping the country. We are dealing with Houses of Assembly which are not thinking about necessary legislation to reduce hunger and poverty. We are dealing with a National Assembly that is more interested in approving fat bonuses, salaries, and emoluments for themselves than providing hope for the people. For example, while seventy billion naira was approved for about five hundred legislators, five hundred billion was allocated to over two hundred million hungry Nigerians. Ominously, thirty-five billion was allocated to the National Judicial Council. The optics, to say the least, are horrifyingly scary and despicable.  Indeed, there is palpable contempt for the ordinary citizens in the country.

    There are too many people who can no longer drive their cars. They simple cannot buy fuel in their cars. There are too many people who cannot get to their place of work every day. Their monthly pay cannot take them to where they earn their living. And the government is silent on the plight of the people. Even IBB the military dictator was more conciliatory to the people after he announced harsh economic measures in the SAP days! President Bola Ahmed Tinubu has refused or failed to connect with the people. He is following the ugly footsteps of his immediate predecessor in office. No! we expected more than this from President Tinubu who had been active in the trenches on behalf of the citizenry in the past!

    There is anger too. Anger with the men and women who occupy the government houses across the country. They are angry with the judiciary. Angry with religious leaders. Angry with traditional rulers for hobnobbing with politicians at the expense of the welfare and survival of their subjects.  As we know, hunger gives birth to anger. And anger from hunger is dangerous. Nigerians are angry with the political class. Angry with Senate President Senator Godswill Akpabio who shamelessly mocked the poor people of this country over letting them breathe! The bible says in Proverbs 17 verse 5: “whoever mocks the poor insults their Maker’. Nigerians are angry with the men and women who rigged their way into office, who currently hold them captive, and who are stuffing their pockets with the national patrimony.

    Let no one deceive Abuja that all is well. Let Abuja not deceive itself that all is well. All is not well. There is also fear, worry, and uncertainty. Where will this take us to? No one is assuring the citizens of the country that their lot will be different at the end of the hellish conditions. Taxes and financial obligations are on the increase. Undergraduates are being asked to pay more for half baked services. ASUU has been emasculated by the federal government after muzzling the judiciary. NLC and other unions have been bullied into acquiescence. The civil liberties organisations which tormented the administration of President Goodluck Jonathan have all gone silent.

    President Tinubu must step out. He is currently invisible, almost absent in the spirit of liberal democracy. One of the duties or obligations of leadership is to provide hope for the citizenry. Even in a season of infinite hopelessness, government must provide hope and a compass that will point in a positive direction. The president should connect with the people. But he cannot connect with the people if he does not hear them. If he does not listen to them. Ensconced in the luxury and false luxury of Aso Rock, it is very easy to be bogged down by inanities.  But the truth, the reality of the situation lies out there. I am sure the Nigerien president who was challenged last week by that nation’s army is surprised at the venom being poured on him by ordinary citizens. Power is held in trust on behalf of the people! Army takeover is not a model for the 21st century, but if dubious politicians drive the citizenry crazy and into frustration, they will welcome any form of change. The spate of coups in West Africa is worrisome. There is, there should be no alternative to the ballot box in effecting a change of government!

    Palliative measures should be rolled out immediately. Workers need state assistance. Transportation should be subsidized. Wages should increase by a modest percentage. The ordinary citizens who eke out a living from menial jobs in the private sector deserve assistance. University lecturers should be paid their entitlements. Their salaries which have remained stagnant since 2009 should be reviewed. Food should be subsidized.

    The governments across the country should check this slide into hopelessness. A policy that kills people first before making the economy strong is dangerous. President Tinubu should know that the buck stops at his desk. He should connect with the people as a democrat. Else, the people will start praying for a dramatic change through the judicial system!

  • Nigeria’s inflation rate hits 22.79% – NBS

    Nigeria’s inflation rate hits 22.79% – NBS

    The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate increased to 22.79 per cent in June 2023.

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

    According to the report, the figure is 0.38 per cent points higher compared to the 22.41 per cent recorded in May.

    It said on a year-on-year basis, the headline inflation rate in June was 4.19 per cent higher than the rate recorded in June 2022 at 18.6 per cent.

    “This shows that the headline inflation rate (year-on-year basis) increased in June 2023 when compared to the same period in May 2022.”

    The report said the contributions of items on the divisional level to the increase in the headline index are food and non-alcoholic beverages at 11.81 per cent and housing, water, electricity, gas and other fuel at 3.81 per cent.

    Others are clothing and footwear at 1.74 per cent; transport at 1.48 per cent; furnishings, household equipment and maintenance at 1.15 per cent and education at 0.9 per cent, and health at 0.68 per cent.

    “Miscellaneous goods and services at 0.38 per cent; restaurant and hotels at 0.28 per cent; alcoholic beverage, tobacco and kola at 0.25 per cent; recreation and culture at 0.16 per cent, and communication at 0.15 per cent.”

    It said the percentage change in the average CPI for the 12 months ending June over the average of the CPI for the previous 12 months period was 21.54 per cent.

    “This indicates a 5.00 per cent increase compared to 16.54 per cent recorded in June 2022.”

    The report said the food inflation rate in June was 25.25 per cent on a year-on-year basis, which was 4.65 per cent higher compared to the rate recorded in June 2022 at 20.6 per cent.

    “The rise in food inflation is caused by increases in prices of oil and fats, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetable, milk, cheese and eggs. ”

    It said on a month-on-month basis, the food inflation rate in June was 2.4 per cent, which was a 0.21 per cent rise compared to the rate recorded in May at 2.19 per cent.

    The report said the “All items less farm produce’’ or core inflation, which excludes the prices of volatile agricultural produce stood at 20.27 per cent in June on a year-on-year basis.

    “This increased by 4.53 per cent compared to 17.75 per cent recorded in June 2022.’’

    It said the highest increases were recorded in prices of passenger transport by air and road, gas, vehicles spare parts, liquid fuel, fuels and lubricants for personal transport equipment, medical services, etc.

    The NBS said on a month-on-month basis, the core inflation rate was 1.74 per cent in June 2023.

    “This indicates a 0.07 per cent drop compared to what was recorded in May 2023 at 1.81 per cent.”

    “The average 12-month annual inflation rate was 18.71 per cent for the 12 months ending June 2023, this was 4.65 per cent points higher than the 14.06 per cent recorded in June 2022.”

    The report said on a year-on-year basis in June, that the urban inflation rate was 24.33 per cent, which was 5.23 per cent higher compared to the 19.09 per cent recorded in June 2022.

    “On a month-on-month basis, the urban inflation rate was 2.31 per cent in June representing a 0.21 per cent rise compared to May 2023 at 2.00 per cent.’’

    The report said on a year-on-year basis in June, the rural inflation rate was 21.37 per cent, which was 3.25 per cent higher compared to the 18.13 per cent recorded in June 2022.

    “On a month-on-month basis, the rural inflation rate in June was 1.96 per cent, which increased by 0.16 per cent compared to May 2023 at 1.80 per cent.’’

    On states’ profile analysis, the report showed in June, all items inflation rate on a year-on-year basis was highest in Lagos at 25.75 per cent, followed by Ondo at 25.4 per cent, and Kogi at 25.23 per cent.

    It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Borno at 20.4 per cent, followed by Zamfara at 20.93 per cent, and Ekiti at 21.06 per cent.

    The report, however, said in June 2023, all items inflation rate on a month-on-month basis was highest in Ogun at 3.21 per cent, Plateau at 3.05 per cent, and Jigawa at three per cent.

    “Zamfara at 1.40 per cent, followed by Delta at 1.42 per cent and Rivers at 1.54 per cent recorded the slowest rise in month-on-month inflation.”

    The report said food inflation in June, on a year-on-year basis, was highest in Kwara at 30.8 per cent, followed by Lagos at 30.37 per cent, and Kogi at 29.71 per cent.

    “Zamfara at 21.38 per cent, followed by Sokoto at 21.60 per cent and Borno at 21.75 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, in June, food inflation was highest in Kwara at 3.82 per cent, followed by Abuja at 3.64 per cent and Ogun at 3.56 per cent.

    “With Rivers at 0.75 per cent, followed by Zamfara at 1.33 per cent and Adamawa at 1.47 per cent recorded the slowest rise on month-on-month food inflation.’’

  • Inflation could hit 30 per cent in Nigeria – Bank of America

    Inflation could hit 30 per cent in Nigeria – Bank of America

    The Bank of America (BOA), has said  that the Monetary Policy Committee of the Central Bank of Nigeria (CBN) may need to increase interest rates by at least 700 basis points before the end of the year to curb inflation.

    In an interview with Bloomberg on Monday, the bank’s sub-Saharan Africa Economist, Tatonga Rusike, said the hike was necessary to tackle soaring inflation occasioned by the fuel subsidy removal and unification of foreign exchange.

    Rusike explained that at the current trend, inflation may quicken to 30 per cent by the end of the year from 22.4 per cent in May, noting that the nation’s apex bank may need to push up the rates.

    He further warned that if this decision was not taken, foreign investors might exercise caution before investing in the country.

    “Inflation may quicken to 30% by the end of the year from 22.4% in May and that will require a monetary policy response from the central bank – effectively, interest-rate hikes by at least 700 basis points.

    “If the negative real interest rate is not reversing, then it is less likely to see foreign inflows coming into the country,” Rusike said adding that “it is less likely they (CBN) will do such level of increases,” he said.

    At its last Monetary Policy Committee meeting held in May 2023, the MPC further pushed benchmark interest rate forward by 0.5 per cent to 18.50 per cent from 18.00 per cent in March.

    The raise has, however, not slowed Nigeria’s soaring inflation which hit 22.41 per cent in May 2023 compared with 22.22 per cent in April 2023.

  • Falling nature of Naira, other African currencies the cause of inflation, public debts

    Falling nature of Naira, other African currencies the cause of inflation, public debts

    The International Monetary Fund (IMF) has revealed that the falling nature of the Naira and other currencies in Nigeria and other is responsible Sub-Saharan African countrie is responsible for the push up in public debts across Africa.

    This revelation was made public on the IMF website on Monday evening.

    The fund noted that with an average depreciation of nine per cent since January 2022, sub-Saharan African currencies have weakened against the US dollar.

    The post read, “Most sub-Saharan African currencies have weakened against the US dollar, fanning inflationary pressures across the continent as import prices surge. This, together with a growth slowdown, leaves policymakers with difficult choices as they balance keeping inflation in check with a still-fragile recovery.

    “As the Chart of the Week shows, the average depreciation for the region since January 2022 is about 8 per cent. The extent varies by country, however. Ghana’s cedi and Sierra Leone’s leone depreciated by more than 45 per cent.”

    IMF further added that the depreciations were mostly driven by external factors, adding that lower risk appetite in global markets and interest rate hikes in the United States pushed investors away from the region towards safer and higher paying US treasury bonds.

    While noting the high import costs in 2022, the IMF added that the large budget deficits had compounded the effects of these external shocks by increasing the demand for foreign exchange.

    On the implications of weaker currencies, the Fund identified inflation and higher public debt.

    The post read, “When currencies weaken against the US dollar, local prices rise, as much of what people buy, including essential items like food, are imported. More than two-thirds of imports are priced in US dollars for most countries in the region.

    “A one percentage point increase in the rate of depreciation against the US dollar leads, on average, to an increase in inflation of 0.22 percentage points within the first year in the region. There is also evidence that inflationary pressures do not come down quickly when local currencies strengthen against the US dollar.

    “Weaker currencies also push up public debt. About 40 per cent of public debt is external in sub-Saharan Africa and over 60 per cent of that debt is in US dollars for most countries. Since the beginning of the pandemic, exchange rate depreciations have contributed to the region’s rise in public debt by about 10 percentage points of GDP on average by end-2022, holding all else equal.”

    Recall that  the Naira has been experiencing a free fall since 2015  when it started falling from N196.92 in June 2015 to N414.72 in June 2022 thus contributing to the Country’s high inflation rate.

    Checks show that in seven years, the naira depreciated by 52.52 per cent against the US dollar and other  currencies.

    The depreciation added N8.72tn to Nigeria’s external debt burden.