Naira Depreciation Can Trigger Inflation – NBS

The National Bureau of
Statistics (NBS) has said contrary to wide-spread speculations that increased pressures on prices could result from the election period, inflation could actually be caused by the recent depreciation of the naira.
It said a review of historical time services in the current democratic dispensation showed little evidence that inflation could be influenced to a large extent by election activities.
The NBS in its 2014 Economic Review and 2015-2017 Outlook also said it expected the Nigerian economy to grow by 5.5 percent in 2015 helped by the non-oil sector, which is expected to drive growth.
It added that growth is expected to average 5-7 per cent in 2015 through 2017.
The statement which was made available to The Tide source further said the impact of declining crude oil prices was likely to result in a decline in the value of non oil exports over the forecasted period, although exports are expected to be positive in the near term.
“The crude oil price shocks, the resulting declining government expenditure and its multiple effects are likely to impact businesses as well,” it said.
Nonetheless, it pointed out that prioritization of infrastructure such as roads and power  are likely to mean that while growth is expected to peak at 6.79 per cent in 2014, the economy is expected to grow by 5.5 per cent in 2015 as the non-oil sector of the economy is expected to drive growth.
It further explained that though some have speculated that there are likely to be increased pressures on prices as a result of the election period, a review of the historical dispensation reveals that this was unlikely to be case.