Business
The inflation rate in Nigeria on an all-time high
Inflation is a rise in the price levels in relation to goods available leading to endless fall in an economy’s purchasing power over a period of time. It measures the proportion of the rate at which the normal price level of goods and services rise over time in an economy. Nigeria has been experiencing increased levels of inflation since the pandemic broke.
The world is currently fighting COVID-19 that has greatly affected many countries and the world at large, that has measures put in place to suppress the virus. Not only did these measures help curb the spread of the novel virus, but it has also reduced the performance of many economies, businesses and health systems of countries. Currently, more than 3,000,000 people got infected worldwide, with almost over 220,414 people dead. 44 people died in Nigeria from the virus with 255 recoveries. This has had a drastic effect on Nigeria’s economy, which saw its peak in March when the first case was recorded. In March, the CPI recorded a 0.84% rise in month-on-month inflation rate in Nigeria, which was a 0.5% increase from the previous month.
The inflation rate in Nigeria has continually been on an increase from month-on-month and year-on-year rates and several financial experts in Nigeria express their concerns about it and are calling for the currency’s stabilization. A majority of forex traders are particularly unaware about the state of the currency at a given period of time, especially beginners who rely on their brokers to update them on events plaguing the markets. The issues with FX broker comparison is that some brokers are more analytical than others when it comes to delivering information to their customers. While some brokers would prefer analyzing news before delivering it to a beginner trader, others just send out the news to their clients, without ensuring that the implications of the news are fully understood.
The average change in the percentage in both rural and urban areas in CPI of one year, ending in March 2020, over the CPI for the previous year till March 2019 was 11.62%. This shows a 0.08 increase rate of over 11.54% recorded in February 2020 for the same average.
In March 2020, the inflation rate in urban regions increased by 12.93% YoY; which was a 0.08 increase rate from 12.85% YoY change recorded in February 2020. With regards to the MoM rate, urban regions list increased by 0.88%, which is a 0.06 increase rate point from 0.82% recorded in earlier months.
This MoM development is generally caused by the prices of food to other consumer goods. Additionally, in March 2020, the inflation rate in the rural areas also increased by 0.03%, highlighting 11.64% from 11.61% in February 2020, which significantly contributed to the index prices of food. Simultaneously, there was a 0.80% increase in indices, at an additional 0.04 rate point from the 0.76% increase recorded earlier that month.
Statistics show that there was a rise in food prices that were brought about by an increase in costs of Potatoes, sweet potato, yams, fish, oils and fats, meat, fruits, bread and oats, and vegetables. There is currently volatility in the prices of all agricultural products, with the inflation rate steady at 9.98%, which is a 0.25% increase compared to the 9.73% recorded in March.
The highest inflation levels in Nigeria were recorded in bicycle prices, passenger transportation by sea and rates increased, medical services, medication, health services in general, and Major family equipment whether electronic or not. The most recent report suggests a quick rise in the prices of all products and services in the country, which was caused by the COVID-19 pandemic lockdown and the continuation of the pandemic. It is worth noting that the most recent inflation rate implies that the buying capacity of customers has decreased.
On Tuesday morning, Nigeria’s Consumer Prices Index, also known as inflation massively increased in August 2020, by 13.22% as per information delivered by the National Bureau of Statistics. This indicates the twelfth continuous rise since September 2019 and the most noteworthy in 28 months reported by a business examination shows that information from the NBS August 2020 expansion.
Business
NCDMB Hails Tinubu’s Oil Sector Executive Orders
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, has commended President Bola Ahmed Tinubu over the announcement of three Presidential executive orders.
The orders, he said, are aimed at providing incentives in the Nigerian oil and gas industry, encourage new investments in the sector, reduce contracting costs and timelines, as well as promote cost efficiency in local content requirements.
According to a statement from the NCDMB’s Directorate of Corporate Communications and Zonal Coordination, the Executive Orders are the “Oil and Gas Companies (Tax Incentives, Exemption, Remission, ETC) Order 2024”, “Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41)”, and the “Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42)”.
Speaking at the Nigerian Content Tower, headquarters of the NCDMB in Yenagoa, Bayelsa State, the Executive Secretary stated that the policy directives had reinforced the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and codified the Service Level Agreements (SLA), which the NCDMB first introduced in May 2017, to fast-track approvals for the Nigeria LNG Limited Train 7 project, before expanding it to the entire industry after signing a Memorandum of Understanding (MoU) with the Nigerian National Petroleum Company Limited (NNPC Ltd), and five international oil-producing companies in September 2023.
Ogbe clarified that the Presidential Executive Orders did not whittle down the powers of the NCDMB or abrogate the schedule of the NOGICD Act.
He said, rather, the Executive Order 41 mandates the Board to ensure the patronage of local companies with domiciled proven capacities and capabilities to achieve cost competitiveness and project delivery within schedule.
He also noted that Executive Order 42 re-emphasized NCDMB’s obligation to fast-track approval processes as required by the SLA and section 23 of the NOGICD Act, which mandates the Board to review projects’ documentation within 10 days and advise the concerned operating company.
The Board’s helmsman assured that the NCDMB would comply with the terms of the Presidential Executive Orders, insisting that the Board had always been pragmatic with its implementation of the NOGICD Act, and mindful of the cost competitiveness of projects and schedules.
He also stated that the objectives of the Executive Orders and the SLAs were directed to shorten the oil industry’s contracting cycle to six months or less, engender speedy development of new projects, contribute to increased oil production, and improve the national economy.
The Executive Secretary expressed delight that President Tinubu had put his stamp of authority on the noble objectives of the SLAs, and commended him for acknowledging the giant strides recorded in Nigerian Content development.
Particularly, he noted the impressive capacities built by local oil and gas service companies in key areas of the industry and the substantial benefits that had accrued to the Nigerian economy and her citizens through local content implementation.
The NCDMB boss assured that the agency would continue to serve as a business enabler and maintain the recognition conferred by the Presidential Enabling Business Environment Council (PEBEC), which awarded the Board the most efficient agency amongst all Federal Government’s MDAs in 2022, and the PLATINUM rating by the Bureau for Public Service Reforms in recognition of the self-imposed reforms of the Board’s processes.
Ariwera Ibibo-Howells, Yenagoa
Business
Nigeria Opens Land, Air Borders With Niger Republic
President Bola Tinubu has directed the opening of Nigeria’s land and air borders with the Republic of Niger.
He also directed the lifting of other sanctions against the country with immediate effect.
A statement signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, said “President Tinubu has also approved the lifting of financial and economic sanctions against the Republic of Guinea”.
The statement is titled “Nigeria opens land and air borders with Republic of Niger, lifts other sanctions”.
The President’s directive has come just days after the ECOWAS Authority of Heads of State and Government lifted economic and travel sanctions on Niger, Mali, and Guinea at its extraordinary summit on February 24, 2024, in Abuja.
ECOWAS leaders had agreed to lift economic sanctions against the Republic of Niger, Mali, Burkina Faso, and Guinea.
Consequently, the President directed that sanctions imposed on the Republic of Niger be lifted immediately alongside others.
The sanctions are: “Closure of land and air borders between Nigeria and Niger Republic, as well as ECOWAS no-fly zone on all commercial flights to and from Niger Republic.
“Suspension of all commercial and financial transactions between Nigeria and Niger, as well as a freeze of all service transactions, including utility services and electricity to the Niger Republic.
“Freeze of assets of the Republic of Niger in ECOWAS Central Banks and freeze of assets of the Republic of Niger, state enterprises, and parastatals in commercial banks.
“Suspension of Niger from all financial assistance and transactions with all financial institutions, particularly EBID and BOAD.
“Travel bans on government officials and their family members”, the statement read.
Business
FG Targets Standards For Electric, CNG Vehicles
The National Automotive Design and Development Council (NADDC) has announced plans to validate its National Occupational Standards for the conversion and maintenance of electric vehicles and Compressed Natural Gas (CNG)vehicles.
The Director-General of NADDC, Joseph Osanipin, disclosed this during the validation workshop exercise for the draft of the national standards for auto gas vehicles in Nasarawa recently.
He stated that the primary objective of the workshop was to develop a blueprint for skills development and standardised operational procedures in the conversion, calibration, and maintenance of those new automotive energy sources, aligning with the government’s renewed hope agenda.
Osanipin noted that upon approval of the draft by the National Assembly, it would facilitate job creation and reduce greenhouse gas emissions, as ongoing plans include the establishment of more CNG gas stations in Abuja.
He said, “If we achieve what the Federal Government wants us to achieve with autogas, it will reduce the dependency on PMS and diesel and mitigate environmental concerns. It will also create more jobs and wealth for the nation”.
According to Osanipin, the essence of the workshop was to ensure that the input of all relevant stakeholders was captured in the making of this national document.
“This is in line with international best practices. It is expected that the document will come out of this effort at international standards and help to drive the auto sector to global standards”, he added.
He emphasised the significance of the Nigerian Automotive Industry Development Plan 2023 – 2033, relaunched by the Federal Government in 2023, aimed at revitalising the automotive industry and fostering sustainable growth through technological and skills development.
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