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Stakeholders Raise Concern As Nigeria’s Inflation Rate Rises To 31.70%

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The challenge of spiraling inflation and how to stem the tide has been central to stakeholders engagements in recent times.
According to analysts at CardinalStone Finance, an investment house, the rising inflation pressure indicates that Nigeria remains within the top 10 countries with the highest inflation reading in Africa.
The analysts said that a material jump in prices of food stuff like rice, was a consequence of the increasing depletion of food reserves and incessant insecurity issues in food-producing parts of the country.
The Tide’s source reports that Nigeria’s inflation rate rose to 31.70 per cent in February from 29.90 per cent in January.
This is according to recent data from the National Bureau of Statistics (NBS).
The NBS said that the February headline inflation rate showed an increase of 1.80 per cent compared to the January headline inflation rate.
It said that on a year-on-year basis, the headline inflation rate was 9.79 per cent points higher than the rate recorded in February 2023, which was 21.91 per cent.
“This shows that the headline inflation rate (year-on-year basis) increased in the month of February 2024 when compared to the same month in the preceding year ( February 2023),” the NBS said.
The International Monetary Fund (IMF) also warned that 8.0 per cent of Nigerians are at a high risk of food insecurity if the current inflationary trajectory persisted.
The Governor of Central Bank of Nigeria (CBN), Mr Yemi Cardoso, said that the leading factors driving inflationary pressure in Nigeria included rising cost of energy.
Cardoso said that high fiscal deficits and lingering security challenges in major food -producing areas were also responsible for the high inflation rate.
He said that the apex bank had initiated a raft of inflation-targeting frameworks in its monetary policy measures.
He said that this informed the decision by the CBN to further raise the Monetary Policy Rate (MPR) by 400 basis points to 22.75 per cent from 18.75 per cent.
According to Cardoso, the move followed the success recorded in slowing down inflation in the past using the same mechanism.
Stakeholders, however, believe that the removal of petrol subsidy, closely followed by the decision to float the Naira were largely responsible for the spiraling inflation.
According to Okechukwu Unegbu, a past president of the Chattered Institute of Bankers of Nigeria (CIBN), President Bola Tinubu already took some sensitive policy decisions even before appointing the CBN governor and the finance minister.
“Floating the Naira was a major error that has exacerbated inflationary trend and caused the people so much pain,” he said.
Unegbu urged the government to fix the economy by looking beyond the Organisation of Petroleum Exporting Countries (OPEC) in selling its crude oil.
He also advised that the government should ignore economic prescriptions by the World Bank and IMF and produce indigenous solutions to the nation’s economic challenges.
“Nigeria should do something about pricing its oil in Naira. We should leave OPEC, price our oil independently.
“If inflation can be addressed; if we produce more food, things will improve. It will also address the issue of “dollarisation of the economy,’’ he said.
A renowned economist, Prof. Ken Ife, said that the CBN adopted inflation targeting as a basis for further tightening monetary policy rates, an indication of how serious government took the country’s rising inflation.
Ife, however, said that the support from the fiscal authorities was crucial to achieving monetary policy results.
“The CBN says it is going for inflation targeting, but there should be more support from the fiscal authorities because a lot of the issues with the economy are not really monetary.
“We have N500 billion going for social intervention annually, the money does not go into the productive sector,” Ife said.
He said that the import dependence nature of Nigeria’s economy was a major fuel to the inflation and weak Naira in the foreign exchange market.
According to him, not much has changed in terms of the structure of the economy over the years.
He said that Nigeria was part of an international division of labour, which confines it to the provision of raw materials and consumer of finished products.
“Any attempt to add value to our exports is usually met with stiff resistance.
“When a country is import dependent, it becomes so vulnerable to any external, global headwind, and it affects the economy
“The mortgage crisis in America and the Russian-Ukrainian war affected us because we are import-dependent. What we have is imported inflation,” he said.
Dr Chijioke Ekechukwu, an economist, said that while many countries were having their inflation rate reduced month-on-month, Nigeria’s inflation rate continued to rise because of volatile exchange rate regime.
Ekechukwu said that standard of living had dropped to the lowest ebb while the country’s external reserve was being eroded by inflation.
“Cost of living has become increasingly unbearable, crime has taken over the entire country, and investors are afraid to venture into the country.
“Companies are shutting down and leaving the country and jobs are lost every day.
“The government has to be very decisive as a matter of urgency to remedy the ailing economy by ensuring that the exchange rate improves to less than N800 to the dollar.
“The exchange rate must be stable to enable planning and to restore confidence in the economy,” he said.
Ekechukwu said that every possible avenue should be explored to diversify the country’s export base.
He advised the Federal Government to ensure that the country’s crude oil sales met the OPEC quota of 1.8 million barrels per day.
“The Federal Government should also ensure that revenue from crude oil sales came in on a daily basis through the CBN, “ he said..
He said that such a step would provide the country with enough liquidity to check inflation and other economic challenges.

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Microsoft Nigeria Not Shutting Down, Presidency Replies Obi

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The Senior Special Assistant on Media and Publicity to President Bola Tinubu, Temitope Ajayi, has refuted media reports claiming the shut down of the Lagos office of Microsoft’s Africa Development Centre.
While noting that the shutdown was an “incorrect media report,” Ajayi said the organisation was “re-aligning roles” within its business, while “few roles will certainly be impacted.”
He stated this yesterday on his X handle @TheTope_Ajayi.
Tweeting, the presidential aide also faulted the tweet made late Wednesday on the same subject by the 2023 Labour Party presidential candidate, Peter Obi, labelling it a “naked dance.”
Obi had lamented the announcement on the shutdown, saying it “underscores the urgent need for comprehensive economic reforms in Nigeria.”
Obi’s tweet partly read, “The recent announcement of Microsoft Nigeria to its workers about shutting down its innovation centre in Lagos and cutting 200 jobs is deeply troubling. It underscores the urgent need for comprehensive economic reforms in Nigeria.
“This further highlights the challenges and broader issues plaguing the Nigerian economy. The closure of Microsoft’s innovation centre represents yet another significant setback for Nigeria’s aspirations to become a hub for technology and innovation in Africa.”
The former Anambra State Governor tweeted that the shutdown “raises serious concerns” about Nigeria’s “business environment for investors.”
Reacting to this, Ajayi noted, “The story that Microsoft is shutting down Nigeria office is not true. Africa Development Centre is just a department within Microsoft business in Nigeria. Contrary to incorrect media reports and Peter Obi’s naked dance, the Africa Development Centre is also not shutting down.
“Microsoft, like any other organisation, is only re-aligning roles within the business, and few roles will certainly be impacted. Affected staff, which are less than 30, will be asked to apply for new roles within Microsoft – a standard practice within the organisation.”
The presidential aide added that employees “who can’t find new roles in other departments or those who want to seek new opportunities outside the system will be asked to go. The situation at Microsoft is not anywhere near the impression of the ‘earthquake’ that Peter Obi sensationally described.”

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Dep Gov, Others Eulogise Blessing Ahiazu At 70

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Rivers State Deputy Governor Professor Mrs Ngozi Odu was among friends and well-wishers who came out to celebrate Professor Blessing Ahiazu as she turned 70.
In what would best be described as a captivating send off for a woman who spent the better part of her life in the academia, colleagues, friends, church members and a host of dignitaries converged at her residence for a warm reception.
Speaking at the event, the deputy governor of Rivers state, Prof. Ngozi Nma Odu said the celebrant is a selfless contributor to humanity, and not just the academic environment.
“Having worked closely with her over the years, while she’s celebrating 70 today, I’ll add one and half to that one, yet I call her Sister Bless. She is worthy of emulation and congratulations are in order”, she said.
Laying emphasis on the words of the Deputy Governor, the Vice chancellor of Rivers State University, Prof. Nlerum Sunday Okogbule, described Prof. Blessing as a first class academic and dogged fighter, adding that her contributions to the university development would be indelible in the sands of time.
“Being the first professor of Rivers State Library, I am proud of her virtues.
“Having worked for 44 years and served under 6 vice chancellors without query, is commendable” he said.
Eulogising her prowess, other speakers from the university Department of Library Science spoke highly of her readiness and availability to service.
Speaking about the celebration, Prof. Blessing said that the university moulded her into the dynamic woman everyone was celebrating.
She advised those in the system and those who wished to go in to be diligent in carrying out their duties.
“Those still serving should defer gratification and work first, gratification will come later. And those who seek to go in, when they go in, they should focus on the job. Greed is a killer. Quick fix is not the best attitude in life. Slow and steady, they say wins the race. And with the backing of God, they will make it”, she said.
One of the highlights of the ceremony was the lunching of her second autobiography titled “Seven Decades of Rainbow Path”
Joining a host of dignitaries and egg heads at the occasion to pay tribute and lunch the book, Professor Emeritus, and former Vice Chancellor of the then Rivers state university of Science and Technology (UniTech), Prof. Simon Achinewhu, said that the realisation that the celebrant had played her part in the Department of Library Science was soul lifting.
He prayed that she would live to see the goodness of God accomplished in her life.
Giving a review of the book, the author said, having worked in the university for over 44 years, the university environment moulded her into the woman she had become. Stating clearly, she said the book is written for her children and grandchildren
”I have sat down to write about myself. The good side and the not-so-good side of the story.
“The challenges and the exploits . So that on that last day, my children will pick it up and extract what they want and add what they will like to add and that becomes the biography of their mother.”
The author further stated that the book would encourage younger ones to learn diligence to be able to succeed in life.

John Bibor

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Methodist Church Lauds Fubara Over Peaceful Disposition

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The Methodist Church of Nigeria Diocese of Gokana, in Mogho Circuit, has commended the Rivers State Governor, Sir Siminialayi Fubara, for his peaceful disposition and creation of harmonious environment for co-existence of various ethnic groups in the State.
This was contained a communique issued at the end of their 12th synod in Mogho, and signed by Very Rev. Baridam N. C. Jason and Rt. Rev. Joseph P. Bel- Aanen, Synod secretary and Diocesan Bishop respectively.
The Synod which was attended by a large number of delegates had the theme, “ARISE AND BUILD” which was taken from the book of Nehemiah 2:18.
The church noted with pain the unbearable and excruciating suffering of people across Nigeria, mainly caused by the sudden and unplanned removal of fuel subsidy coupled with the steady decline in the value of the naira against the dollar which has triggered unprecedented rise in the cost of living generally.
“The Federal Government of Nigeria should rather focus on long-term sustainable measures in addressing the numerous challenges facing the country instead of its short-term plans of using palliatives to stop hunger and suffering in the land.
“As Church we decried the incessant callous invasion and continuous destruction of lives and properties by Boko Haram, armed bandits and Fulani herdsmen in different parts of the country.
“We equally condemn in strong terms the recent invasion of Agbeta Community in Eleme Local Government Area of Rivers State by Fulani herdsmen who not only abducted children and raped women, also destroyed farm produce worth millions of naira with their cattle, thereby causing hunger and hardship in the area,” they said.
They further used the forum to condemn in strong terms the institution of same sex marriage and transgender practices by some religious organizations in some parts of the world and called on religious and non-governmental organizations to brace up and be united in the fight against the twin sexual perversions of same sex marriage and transgender practices in Nigeria.

Tonye Orabere

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