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Tag: Inflation

  • BREAKING: Nigeria’s inflation rate hits 5-year high at 18.60%

    BREAKING: Nigeria’s inflation rate hits 5-year high at 18.60%

    The National Bureau of Statistics (NBS) has announced headline inflation for the twelve months period ending June 2022 was 18.60%.

    On a month-on- month increase, this indicates a 1.82% rise in Nigeria’s inflation when compared to the figure for May 2022, which was 17.71%.

    According to NBS, in June 2022, Nigeria’s inflation rate increased to 18.60 percent on a year-on-year basis, 0.84 percent points higher compared to the rate recorded in June 2021, which is 17.75 percent.

    This means that the headline inflation rate increased in the month of June 2022 when compared to the same month in the previous year (i.e., June 2021).

    Increases were recorded in all the Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index, according to the national statistical office.

    “On a month-on-month basis, the Headline inflation rate increased to 1.82 percent in June 2022, this is 0.03 percent higher than the rate recorded in May 2022 (1.78 percent).

    “The percentage change in the average composite CPI [consumer price index] for the twelve months period ending June 2022 over the average of the CPI for the previous twelve months period is 16.54 percent, showing a 0.62 percent increase compared to 15.93 percent recorded in June 2021,” the NBS stated.

    TheNewsGuru.com (TNG) reports the 18.60% inflation rate announced by the NBS for June 2022 indicates a 5-year high for Nigeria.

    Nigeria’s inflation rate in 2017 was 16.52%, an increase of 2.08% between then and now.

  • CBN clears air on rumours of Emefiele’s sack

    CBN clears air on rumours of Emefiele’s sack

    The Central Bank of Nigeria (CBN) has debunked rumour that its governor Godwin Emefiele has been sacked.

     

    The rumour followed the decision of the CBN to increase the interest rate from 11.5% to 13%, citing rising inflation and the need to avoid a lack of demand for Nigeria’s bonds.

    CBN
    CBN governor, Godwin Emefiele

     

    There have been calls for Emefiele’s resignation or sack over his presidential aspiration.

     

    However, reacting to the fresh rumour on Wednesday that Emefiele had been relieved of his duties, CBN spokesman Osita Nwanisiobi told Nairametrics that “he is not aware of any sack of the CBN governor.”

     

    It was also learnt that Emefiele is in Davos on an official assignment.

     

    He had approached a federal court seeking to restrain the bank’s board, the attorney general of the federation and the Independent National Electoral Commission (INEC) from hindering him from running for the office of the president.

     

    Since backing off from his presidential ambition, Emefiele has withdrawn the suit from the court.

     

    TheNewsGuru.com (TNG) reports that he withdrew the suit filed against the Independent National Electoral Commission (INEC) and the Attorney-General of the Federation over his presidential ambition.

     

    Emefiele, through his counsel, S.T. Maliki, told Justice Ahmed Mohammed that a notice of discontinuance had been filed and served on the defendants in the matter.

     

    Maliki, who held the brief of Chief Mike Ozekhome, SAN, said though the matter was scheduled for mention, they had Emefiele’s instruction to withdraw the suit.

     

    “Pursuant to the instruction of the plaintiff (Emefiele), we filed a notice of discontinuance dated and filed May16, 2022.

     

    “And the said notice of discontinuance was served on all the defendants on that said date of May 16, 2022, which proof of service is before your lordship,” Maliki said.

     

    The lawyer said of all the defendants, only the 4th and 5th defendants filed a counter-affidavit in response to the plaintiff’s amended originating summons after the notice of withdrawal had been served on them.

     

    He prayed the court to discontinue the suit and make an order striking it out, issues having not been joined by parties in the suits, citing Order 50 of the rules of this court.

     

    Although the lawyer of the 4th defendant, John Aikpokpo-Martins, opposed Emefiele’s intention to withdraw the suit, he urged the court to dismiss the suit with N1.5 million cost.

     

    However, counsel for the 2nd and 3rd defendants, Chris Nevo and T. J. Adi respectively did not object to the withdrawal notice.

  • Nigerians lament as MultiChoice hikes prices of GOtv, DStv packages

    Nigerians lament as MultiChoice hikes prices of GOtv, DStv packages

    Nigerians have flayed MultiChoice for increasing the prices of its DStv and GOtv packages after the South African company revealed that beginning from April 1, subscribers will start paying more for all its bouquets.

    The company made this known in a statement on Tuesday to the chagrin of Nigerians saying: “In light of the rising costs of inflation and business operations, we have had to review the price of our packages to keep delighting our customers with great entertainment, anytime and anywhere. Therefore, from April 1, 2022, a new pricing regime for both our DStv and GOtv packages will be in effect”.

    TheNewsGuru.com (TNG) reports MultiChoice Nigeria is the Nigerian subsidiary of MultiChoice Africa, owner of DStv and GOtv.

    Multichoice said its DStv package would now cost: Premium (N21,000); Compact + (N14,250); Compact (N9,000); Confam (N5,300); Yanga (N2,950); Padi (N2,150); Business (N2,669) and Xtraview + PVR access fee (N2,900).

    It said that the new prices for GOtv package were: Gotv Max for N4,150; GOtv Jolli for N2,800; GOtv Jinja for N1,900 and GOtv Lite for N900.

    To cushion the price adjustments, Multichoice said customers who pay on or before their due date (before April 1), would be eligible to pay the old price.

    Also, customers who pay consistently on time (before their due dates) for a period of 12 months, would also be eligible to pay the old price.

    “Customers who pay for 10 months upfront on the new price will get the 11th and 12th month free,” the company said.

    The company said the price adjustments would enable it to serve customers better.

    However, Nigerians did not find the development funny at all, coming at a time when they are battling with lack of electricity supply, fuel scarcity, rising inflation and dwindling income.

    Read reactions from Nigerians below:

  • How to curb Nigeria’s inflation – CPPE

    How to curb Nigeria’s inflation – CPPE

    The Centre for the Promotion of Private Enterprise (CPPE) has said made recommendations to curb Nigeria’s high inflationary pressures, which continued to be a major worry to stakeholders in the Nigeria economy.

    Its Chief Executive Officer, Dr Muda Yusuf, made the recommendations while reacting to the January inflation rate on Tuesday in Lagos.

    The CPPE boss said to curb inflation, the federal government needed to tackle insecurity, reduce fiscal policy deposit monetisation and create an investment friendly tax environment.

    “Government must also address concerns around high energy cost, reduce import duty on intermediate products and raw materials for industries to reduce production costs.

    “They must also ensure the restoration of normalcy and good order at the nations ports to reduce transaction costs and manage climate change consequences to reduce flooding and desertification,” he said.

    The National Bureau of Statistics (NBS) reported a marginal drop of 0.87 per cent, in headline inflation from 16.47 per cent in January 2021 to 15.60 per cent in January 2022.

    However, on a month on month basis, there was an uptrend in general price level by 1.47 per cent between December 2021 and January 2022.

    Yusuf stated that although the economy recorded a marginal decline in headline inflation in January year on year, key drivers of inflationary pressure remained largely unchanged.

    Some of these, he said, included exchange rate depreciation, liquidity challenges, security concerns, climate change, high energy and transportation costs.

    Others, he said, were structural constraints affecting agricultural value chain, monetisation of fiscal deficit, high import duties, high charges at the ports, and aggressive revenue drive by government agencies.

  • Fuel crisis may have adverse effect on inflation, says Statistician-General

    Fuel crisis may have adverse effect on inflation, says Statistician-General

    Mr Simon Harry, the Statistician-General of the Federation, says the present fuel crises being experienced across the nation may have adverse effect on inflation rate.

    He said this on Tuesday in Abuja, at a media conference to announce the January 2022 Consumer Price Index (CPI).

    Harry said that the fuel crisis would create an artificial shock in the economy and that the shock was capable of shaking the economy.

    “Whether we like it or not, transporters will be taking advantage of the situation, thereby, increasing the costs of transportation.

    “As you are bringing your commodities to the market for sale, you will be thinking of adding some amount on the selling costs so that you will be able to recover the costs of transportation.

    “So that gives us a negative signal that is capable of affecting not just inflation rate, but also other macro-economic variables such as the Gross Domestic Product (GDP) and even the unemployment rate.

    “I can however, assure you that certainly it is not the best for the economy and if we must maintain a stable macroeconomic environment, this kind of crisis certainly is not the best for it is not needed.’’

    He added that because the economy was strongly being driven by the private sector, the shock may affect a good number of private businesses as they may not be able to run effectively as expected.

    He, however, said that the February inflation rate could not be predicted based on the present fuel crisis as the numbers were still being collected.

    On the present rate, the statistician-general said that CPI for January was 15.60 per cent from 15.63 per cent recorded in December 2021.

    However, on year-on-year basis, it was 0.87 per cent points lower than the rate recorded in January 2021 (16.47) per cent.

    Harry said that the headline index increased by 1.47 per cent in January, 0.34 per cent points lower than 1.82 per cent recorded in December 2021.

    According to Harry, core inflation for January was 13.87 per cent, the same with that of December 2021, while food inflation for January was 17.13 per cent compared to 17.37 per cent in December.

    He also said that urban inflation rate stood at 16.17 per cent year-on-year in January, same with that of December 2021.

    “On the other hand, rural inflation was 15.06 per cent and 15.11 per cent in and December, 2021 respectively.
    ​
    “On state by state comparison, all items inflation on year-on- year basis was highest in Abuja with 18.59 per cent followed by Kogi with 18.28 per cent and Bauchi 17.61 per cent.

    “On the other hand, Kwara recorded the lowest with 12.94 per cent followed by Niger with 14.10 per cent and Oyo, 14.19 per cent.’’

    Harry added that composite food index rose by 17.13 per cent in January 2022, compared to 20.57 per cent in January, 2021.

    The rise in the food index was caused by increases in prices of bread and cereals, food product such as potatoes, yam and other tuber, soft drinks, oils and fats, and fruits.

    “On month-on-month basis, the food sub-index increased by 1.62 per cent in January,, which was down by 0.57 per cent points from 2.19 per cent recorded in December, 2021.

    “The All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.87 per cent in January, 2022.

    “This was higher by 2.02 per cent, when compared to 11.85 per cent, the rate recorded in January, 2021.’’

    He said that the highest increases were recorded in prices of electricity, liquid fuel, wine, tobacco, spirit, solid fuels, cleaning, repair and hire of clothing.

    Others are shoes and other foot wear, other services in respect of personal transport equipment, other services not elsewhere classified and pharmaceutical products.

    For food inflation, ​on state by state basis, Harry said on a year-on-year basis it was highest in Kogi with 22.61 per cent followed by Enugu with 19.84 per cent and Akwa-Ibom 19.67 per cent,

    Meanwhile, Sokoto had 14.18 per cent, Bauchi 14.63 per cent and Kaduna 15.01 per cent as the lowest in January.​

  • Food, headline inflation rise in December 2021 — NBS

    Food, headline inflation rise in December 2021 — NBS

    Bread and cereals, meat, fish, other food items accounted for rise in food inflation in December, 2021 to 17.37 per cent, as headline inflation rose to 15.63 per cent.

    Statistician-General of the Federation, Mr Simon Harry, gave the figure on Monday in Abuja at a news conference to announce the Consumer Price Index (CPI) for December 2021.

    Harry said there was a 0.16 per cent increase from the 17.21 per cent recorded for food inflation in November, 2021.

    He said that headline inflation rose by 0.23 per cent in December from 15.40 per cent in November due to increase in prices of goods and services as a result of increase in demand in the festive season.

    He added that the nation had maintained a consecutive decline in the year-on-year headline inflation for a period of eight months from April to November.

    “The change in the declining trend for about eight months might have been caused by the increase in prices of goods and services as a result of increase in their demand during the month under review, being a festive season.”

    He, however, said that on month-on-month basis, the headline index increased by 1.82 per cent in December, being 0.74 per cent rate higher than the rate recorded in November, which stood at 1.08 per cent.

    “The urban inflation rate increased to 16.17 per cent (year-on-year) in December from 16.33 per cent recorded in December 2020, down by 0.16 per cent, while the rural inflation rate increased to 15.11 per cent in December, 2021 from 15.20 per cent in December 2020, which was lower by 0.09 per cent points.

    “The corresponding 12-month year-on-year average percentage change for the urban index was 17.52 per cent in December, 2021.

    “This is lower than the rate reported in November of the same year which was 17.55 per cent, while the corresponding 12-month (month-on-month) average percentage change for rural index inflation rate in December, 2021 stood at 16.40 per cent from 16.42 per cent in November.”

    The Statistician-General said that the ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.87 per cent in December, 2021, higher by 2.50 per cent when compared with 11.37 per cent recorded in December, 2020.

    He added that on month-on-month basis, the core sub-index increased to 1.12 per cent in December, lower by 0.13 per cent when compared with 1.26 per cent recorded in November.

    “The highest increases were recorded in prices of gas, liquid fuel, wine, actual and imputed rentals for housing, narcotics, tobacco, spirit, cleaning, repair and hire of clothing.

    “Others are garments, shoes and other foot wear and clothing materials, other articles of clothing and clothing accessories.”

    Harry said that on State- by – State comparison, All Items was highest in Ebonyi at 18.71 per cent, while Kwara recorded the lowest at 12.32 per cent.

    On the other hand, food Inflation was highest in Kogi at 22.82 per cent, while Edo was the lowest with 13.24 per cent.

    He, however, said that he envisages a gradual decline in the figures from January, 2022 as prices of goods and services was expected to begin to reduce.

    This, he said, would get the nation back to the trajectory of persistent decline that was recorded in 2021.

    He said that the details were necessary in building the confidence of users of statistics on the numbers released and educating Nigerians on the significance of such numbers in determining the performance of every successive government.

    He added that the Federal Government had over the years respected the operational independence of the NBS such that data was produced and released without any interference.

    Harry said that this had enabled the bureau to produce statistics with integrity and in line with the reality on ground.

  • Nigeria’s inflation rate drops for seventh consecutive month

    Nigeria’s inflation rate drops for seventh consecutive month

    Nigeria’s annual inflation rate has dropped for the seventh straight month to 15.4 per cent in November as against 15.99 percent reported in the previous month.

    This is according to the National Bureau of Statistics (NBS) Consumer Price Index (CPI) report released by the agency on Wednesday.

    The new figure represents a 2.77 percentage point decline since March when the inflation rate hit 18.17 per cent.

    “The consumer price index, (CPI) which measures inflation increased by 15.40 per cent (year-on-year) in November 2021. This is 0.51 percent points higher than the rate recorded in November 2020 (14.89) per cent,” the report added.

    “Increases were recorded in all COICOP divisions that yielded the Headline index. On a month-on-month basis, the Headline index increased by 1.08 percent in November 2021, this is a 0.10 per cent rate higher than the rate recorded in October 2021 (0.98) per cent.

    “The percentage change in the average composite CPI for the twelve months period ending November 2021 over the average of the CPI for the previous twelve months period was 16.98 per cent, showing 0.02 percent point from 16.96 per cent recorded in October 2021.”

    Furthermore, the NBS report indicated that the urban inflation rate rose by 15.92 per cent (year-on-year) in November 2021 from 15.47 per cent in November 2020.

    This is just as the rural inflation level jumped by 14.89 per cent in November 2021 from 14.33 per cent in November 2020.

    “On a month-on-month basis, the urban index rose by 1.12 per cent in November 2021, up by 0.10 the rate recorded in October 2021 (1.02) per cent, while the rural index also rose by 1.04 per cent in November 2021, up by 0.09 the rate that was recorded in October 2021 (0.95) per cent,” it added.

    “The corresponding twelve-month year-on-year average percentage change for the urban index is 17.55 percent in November 2021. This is higher than 17.53 per cent reported in October 2021, while the corresponding rural inflation rate in November 2021 is 16.42 percent compared to 16.39 per cent recorded in October 2021.”

  • Nigeria’s inflation falls again in October

    Nigeria’s inflation falls again in October

    The National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation rate declined for the seventh consecutive month to 15.99 per cent in October.

    The Statistician-General of the Federation, Simon Harry disclosed this on Monday in Abuja while presenting the details of the Consumer Price Index report for October.

    According to him, the inflation rate fell by 0.37 per cent from 16.36 per cent in September.

    He said that on a month-on-month basis, the Headline index increased by 0.98 percent in October 2021, adding that this is 0.17 per cent rate lower than the 1.15 per cent recorded in September 2021.

  • Nigeria records another drop in inflation

    Nigeria records another drop in inflation

    The Consumer Price Index, (CPI) which measures inflation increased by 16.63 per cent (year-on-year) in September 2021.

    This is 0.38 per cent points lower than the rate recorded in August 2021 (17.01) per cent, according to a report released by the Nigeria Bureau of Statistics on Friday.

    Increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the Headline Index.

    On a month-on-month basis, the Headline Index increased by 1.15 per cent in September 2021, this is 0.13 per cent rate higher than the rate recorded in August 2021 (1.02) per cent.

    The percentage change in the average composite CPI for the 12-month period ending September 2021 over the average of the CPI for the previous 12-month period was 16.83 per cent, showing 0.23 per cent points from 16.60 per cent recorded in July 2021.

    The urban Inflation rate increased by 17.19 per cent (year-on-year) in September 2021 from 17.59 per cent recorded in August 2021, while the rural inflation rate increased by 16.08 per cent in September 2021 from 16.45 per cent in August 2021.

    On a month-on-month basis, the Urban Index rose by 1.21 per cent in September 2021, up by 0.15 the rate recorded in August 2021 (1.06), while the Rural Index also rose by 1.10 per cent in September 2021, up by 0.11 the rate that was recorded in August 2021 (0.99) per cent.

  • No redemption! Naira plunges to N562/$ in parallel market amid drop in inflation

    No redemption! Naira plunges to N562/$ in parallel market amid drop in inflation

    Nigeria’s naira further plinged against the dollar in the parallel market, closing at N562/$ on Wednesday against N557/$ at the market opening.

    On the Importers/Exporters window, the country’s currency closed at N410.54.

    The British pound was stable against the naira, closing at N760/£ – the same rate at the start of the market day.

    However, naira weakened against the euro, closing at N648/$ against N645/$ on Wednesday morning.

    Naira has weakened against the dollar by over 40 per cent in the parallel market in the last one year as COVID-19, oil price vagaries, and low dollar supply continue to hurt the economy.

    For an import-dependent economy like Nigeria, the relationship between exchange rate and inflation is direct.

    The reason is that as the local currency weakens, prices of imported goods become more expensive, experts say.

    One of the Bureau De Change operators recently banned by the Central Bank of Nigeria (CBN) Aminu Salau said that hoarding of dollars had become commonplace in the parallel market.

    “There is an increased rate of hoarding in the market. Many people are holding their dollars with the hope that prices will rise further in the future,” he said.

    Chairman of Manufacturers Association of Nigeria Export Group Ede Dafinone said in the face of dwindling dollar inflows from oil, Nigeria should increase non-oil export to raise foreign exchange inflows.

    However, amid the weakening local currency, inflation fell in August 2021, dropping from 17.38 per cent in July to 17.01 in August, representing a marginal 0.37 per cent decline.