Connect with us

Business

The inflation rate in Nigeria on an all-time high

Published

on

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.

 

 

 

 

 

Continue Reading

Business

Agency Boss Seeks Improvement In Revenue Collection, Accountability 

Published

on

The Managing Director of National Inland Waterways Authority (NIWA), Mr. Bola Oyebamiji, has called on the management and staff of the brown water regulatory agency to show renewed commitment to boosting revenue generation, enforcing accountability, and improving operational efficiency of the organisation.
Oyebamiji, who made the call recently while declaring open a retreat for NIWA’s top executives and stakeholders in the industry in Lokoja, Kogi State, stressed the need for improved performance across all NIWA offices, particularly in revenue generation.
He expressed concern over the under performance of some area offices, citing cases where annual revenue figures were as low as one or two million Naira.
“This situation is simply unacceptable. Despite management’s provision of resources, incentives, and training opportunities, the expected results were not achieved.
“Moving forward, stricter measures will be enforced to ensure accountability and drive performance”, Oyebamiji stated.
He further addressed the challenges in debt recovery, revealing that many Area Managers failed to cooperate with the debt recovery consultant appointed in 2024.
He said in some instances, debtors were either untraceable or provided inconsistent financial records, making recovery efforts difficult.
“This negative attitude towards financial accountability will no longer be tolerated”, he warned.
The retreat, which brought together key stakeholders including the honourable Minister of Marine and Blue Economy, the Chairman of the House Committee on Inland Waterways, the NIWA Board, Management staff, and security personnels, aims at providing a comprehensive review of the authority’s 2024 performance and establish strategic targets for 2025.
Oyebamiji emphasized that beyond reviewing past performance, the retreat would also focus on capacity building and teamwork to ensure that every officer is well-equipped to meet the set goals.
“This retreat is not just about evaluating past performance, it is about strategizing for the future. I encourage all participants to engage actively, exchange ideas, and work collectively towards making NIWA a leading agency in the marine and blue economy sector”, he concluded.
The two-day retreat featured panel discussions, training sessions, and interactive engagements aimed at strengthening NIWA’s operational framework and fostering a culture of efficiency, accountability, and innovation.

Nkpemenyie Mcdominic, Lagos

Continue Reading

Business

NCDMB Scribe Sues For African Collaboration Strategy On Local Content …… Decries Fragmented Implementation

Published

on

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, has charged sub-Saharan African nations to keep pace with unfolding trends in the global oil and gas industry.
He also charged them to adopt a unified approach in strengthening local content development, advancing industrialisation and fostering sustainable continent-wide economic growth.
Ogbe stated this in a keynote address he gave at the 9th Sub-Saharan African International Petroleum Exhibition and Conference (SAIPEC), in Lagos, last Tuesday.
According to him, nations such as Nigeria, Angola, and Ghana have made notable strides in local content development by boosting indigenous participation in the oil and gas sector.
He, however, expressed regret that fragmented implementation continues to hinder collective progress.
The NCDMB scribe called for a collaborative strategy among petroleum-producing nations in sub-Saharan Africa that would foster the sharing of best practices and enhance cross-border partnerships that could drive the competitiveness of indigenous players.
In his paper entitled “Sub-Saharan Africa Local Content Collaboration Strategy”, Engr. Ogbe identified harmonisation of local content policies, human capital development, investment in infrastructure, funding for local companies and technology transfer, as key pillars to Africa’s collaboration strategy.
He noted that “there is a need to develop a robust local content framework that positions the region for long-term economic prosperity”, and that this could be fostered “through the collaborative efforts of the African Petroleum Producers Organisation (APPO), and the United Nations Economic Commission for Africa and the African Union”.
The NCDMB boss also highlighted the importance of the African Continental Free Trade Agreement (AfCFTA) as a critical legal framework that could be leveraged to achieve collaborative local content strategy in Africa, given the free trade area it has created by integrating 1.3 billion people across 54 African countries with a combined gross domestic product of over $3 trillion.
On human capital development, which he described as “pivotal to the successful implementation of local content”,  he observed that approximately 60% of Africa’s population is currently under the age of 25, and that this teeming population provides a unique opportunity to fast-track development.

Ariwera Ibibo-Howells, Yenagoa

Continue Reading

Business

ICTN Not Threat To Trade Efficiency – SEREC … Blames Unregulated Charges, Others

Published

on

The Sea Empowerment and Research Centre (SEREC) has in strong terms countered claims that the proposed International Cargo Tracking Note (ICTN) is detrimental to Nigeria’s economy.
Contrarily, SEREC said rather, it’s unregulated charges, informal levies, and multiple taxation that pose a far greater threat to trade efficiency and port competitiveness.
In a recent publication, SEREC expressed concern over the misrepresentation of ICTN’s role, particularly in media reports suggesting it would “kill the economy”.
The research center emphasised that ICTN, if properly implemented, would add real value to the port system by enhancing trade transparency, streamlining import statistics, and improving regulatory oversight.
“If we are sincerely concerned about charges that are ‘killing the economy,’ then our focus should be on the various hidden and unregulated costs currently imposed on shippers”, SEREC’s Head of Research, Eugene Nweke, siad.
SEREC provided a detailed breakdown of excessive charges affecting shippers.
These charges, according to the Centre, significantly contribute to inefficiencies in Nigeria’s port system, increasing the cost of trade and making logistics unpredictable.
One of the major concerns raised in the publication is the “Seven per cent Port Development Levy”, which continues to be collected despite the port concession regime.
In addition, “various unregulated terminal handling charges, positioning fees, scanning fees, and labour costs” have further added to the financial strain on shippers.
The “ETO Trucking Fee”, set at N100,000 per truck for entry and exit at terminals, is another significant burden, the Centre noted. Meanwhile, “arbitrary trucking costs” which are unilaterally determined by service providers create further unpredictability in the logistics chain.
SEREC also highlighted the issue of “informal payments and settlements”, which it said involved “unreceipted fees” at different cargo clearance points.
These hidden costs, coupled with “security agency tolls” allegedly imposed by government security operatives along cargo routes make cargo movement more expensive. Additionally, the Centre criticised the “state-favourably on the global stage.”

Given these arguments, SEREC is calling for the “immediate implementation of ICTN” to restore order and efficiency in Nigeria’s port system.

The research Centre argues that ICTN should not be grouped with arbitrary charges but should be seen as a “structured, value-adding fee with a clear function”.

Nweke assured that “by the time the implementation fully runs through a period, the effects and contributions to the port system and its impact is felt by all, then, those who are initially in doubt of the effectiveness of the ICTN would have no option but to embrace and appreciate the enabling device (ICTN)”.

 

Continue Reading

Trending