Economy
Despite Rise in Food Prices, Inflation in Nigeria Eases to 17.75% in June
By Aduragbemi Omiyale
For another month, inflation in Nigeria further moderated in June 2021 by 0.18 per cent to 17.75 per cent from 17.93 per cent recorded in May 2021.
However, the National Bureau of Statistics (NBS) in a report released on Friday, said on a month-on-month basis, the headline index increased by 1.06 per cent in June 2021, 0.05 per cent higher than the 1.01 per cent recorded in May 2021.
The agency stated that the change in the average composite inflation for the 12 months period ending June 2021 over the average of inflation for the previous 12 months period was 15.93 per cent, 0.43 per cent higher than the 15.50 per cent recorded a month earlier.
Last month, all items inflation on a year-on-year basis was highest in Kogi at 23.78 per cent, Bauchi at 20.67 per cent and Jigawa at 19.81 per cent, while Cross River at 15.53 per cent, Delta at 15.18 per cent and Abuja at 15.15 per cent recorded the slowest rise in headline year-on-year inflation.
But on a month-on-month basis, in June 2021, all items inflation was highest in Kano at 2.22 per cent, Akwa Ibom at 1.98 per cent and Osun at 1.92 per cent, while Bauchi at 0.00 per cent recorded no change in headline month-on-month with Abuja and Cross River recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
As regards the food inflation in June 2021, the stats office said the composite food index rose by 21.83 per cent compared to 22.28 per cent in May 2021, indicating that food prices continued to rise in June 2021 but at a slightly slower speed than they did in May 2021.
It was disclosed that the rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, milk, cheese and eggs, fish, soft drinks, vegetables, oils and fats and meat.
On a month-on-month basis, the food sub-index increased by 1.11 per cent in June 2021, up by 0.06 per cent from 1.05 per cent recorded in May 2021.
The average annual rate of change of the food sub-index for the 12-month period ending June 2021 over the previous 12-month average was 19.72 per cent, 0.54 per cent higher than the 19.18 per cent recorded in May 2021.
In the period under review, food inflation on a year-on-year basis was highest in Kogi at 30.34 per cent, Enugu at 25.18 per cent and Kwara at 24.78 per cent, while Bauchi at 18.97 per cent, Rivers at 18.92 per cent and Abuja at 17.09 per cent recorded the slowest rise in year-on-year inflation.
However, on a month-on-month basis, food inflation last month was highest in Jigawa at 2.67 per cent, Edo at 2.43 per cent and Cross River at 2.16 per cent, while Lagos at 0.14 per cent, Borno at 0.06 per cent and Kwara at 0.02 per cent recorded the slowest rise in food inflation.
The NBS also stated in its report that the urban inflation rate increased by 18.35 per cent year-on-year in June 2021 from 18.51 per cent recorded in May 2021, while the rural inflation rate increased by 17.16 per cent in June 2021 from 17.36 per cent in May 2021.
By Adedapo Adesanya
The federal government has begun the process of repaying the N4 trillion debt owed to Power Generation Companies (GenCos) with the launch of a N590 billion first-tranche bond issuance.
The initial tranche, part of the wider N4 trillion Nigerian Bulk Electricity Trading (NBET) Finance Company Plc Bond Programme, comprises N300 billion in cash bonds to be issued to the market and N290 billion in non-cash bonds to be directly allotted to GenCos on identical terms.
The bond term sheet revealed that the Series 1 bond will be issued between November and December 2025 with CardinalStone Partners Limited serving as the lead issuing house and financial adviser.
The seven-year bond has a coupon range of 16.25 per cent to 16.75 per cent and carries a full sovereign guarantee and will be listed on both the Nigerian Exchange Limited and FMDQ Securities Exchange, making it eligible for investment by pension fund administrators, banks, asset managers, insurers and high-net-worth investors.
According to the term sheet, “Series 1 Tranche A involves N300bn issued to the market for cash, while N290bn under Tranche B is allotted to the GenCos on identical terms. The bond will be issued between November and December, with a seven-year tenor on a fixed-rate coupon, redeemed on an amortising basis and paid semi-annually in arrears.”
The bond issuance marks a major step by President Bola Tinubu’s administration to resolve what experts describe as one of the most crippling financial crises in Nigeria’s power sector. The Series 1 bond carries a seven-year tenor, a fixed coupon rate, and semi-annual interest payments, and will be amortised over its lifespan.
The issuer also retains the discretion to absorb oversubscription of up to N1.23tn, creating room for additional non-cash bond allocations to GenCos if required.
The term sheet added, “Pricing will be based on the yield of the seven-year FGN bond plus a spread, and the issuance will be conducted through a book-build process. The minimum subscription is N5m, representing 5,000 units at N1,000 each, with additional subscriptions in multiples of N1,000.
“Proceeds from the issuance will be used to settle outstanding liabilities owed to GenCos. The instrument is guaranteed by the full faith and credit of the Federal Government, enjoys CBN liquidity status, meets PenCom compliance requirements, qualifies under the Trustee Investment Act, and will be listed on both the Nigerian Exchange Limited and the FMDQ OTC Securities Exchange.”
It further noted that “oversubscription may be absorbed at the discretion of the issuer up to a maximum of N1,230,000,000,000 approved for Phase 1 of this transaction. The issuer reserves the right to increase the size of the non-cash bonds to be issued to the GenCos under any Series or accommodate additional allotments as may be required.”
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited and Heirs Energies have signed a deal to capture and use the gas flared at their onshore OML 17 joint venture in a bid to monetize the resource and reduce flaring.
The state oil company and Heirs Energies have signed the Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme (NGFCP), a deal that will see both entities capture the gas flared across OML 17 and deploy it for use in power generation, industrial applications, liquefied petroleum gas (LPG), and compressed natural gas (CNG).
The agreements bring together Heirs Energies, as operator of the OML 17 Joint Venture, and approved flare gas offtakers – AUT Gas, Twems Energies, Gas & Power Infrastructure Development Limited (GPID), PCCD and Africa Gas & Transport Company Limited (AGTC) – under frameworks designed to eliminate routine flaring while converting previously wasted resources into economic value. The move is aligned with Nigeria’s gas development priorities and energy transition goals, Heirs Energies said in a statement.
Gas flaring has been a major issue at Nigeria’s oilfields where it is wasted instead of used for many industrial purposes, and holds back the country’s targets to reduce emissions.
Last year, World Bank data showed that Nigeria saw flaring volumes jump by 12 per cent, the second largest increase globally behind Iran.
Flaring at oil and gas facilities operated by the national oil company and several smaller companies, likely with limited expertise or funding for gas utilization, accounted for 60 per cent of Nigeria’s gas flaring and 75 per cent of the increase in 2024, the report found.
Commenting on the deal to monetize gas at OML 17, Heirs Energies CEO, Mr Osa Igiehon said that “Through disciplined investment, partnership with regulators and credible offtakers, and a clear execution focus, we are converting waste into value, strengthening domestic energy supply and supporting responsible operations across OML 17.”
On his part, the Chief Upstream Investment Officer of NNPC Upstream Investment Management Services (NUIMS), Mr Seyi Omotowa, representing NNPC Limited, described the milestone as a practical demonstration of Nigeria’s commitment to gas-based development.
“Flare gas commercialisation is not a compliance exercise; it is a strategic pathway to improving energy availability, deepening gas-based industrialisation and strengthening Nigeria’s position as a responsible energy producer. OML 17 has become a practical model of this vision, moving decisively from approval to delivery.”
He commended Heirs Energies for disciplined execution and investment, noting that the JV continues to set benchmarks for operational delivery and gas development within Nigeria’s upstream sector.
By Adedapo Adesanya
Data sourced from the latest Fact Sheet released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that daily petrol consumption in Nigeria dropped by 6.8 per cent to an average of 52.9 million litres in November 2025.
The November figure marked a decline from the 56.74 million litres per day recorded in October 2025.
Of the total petrol consumed last month, 19.5 million litres per day were supplied by local refineries, higher than the 17.08 million litres per day recorded a month earlier.
A major driver of this increase was the Dangote Refinery, supplying an average of 23.52 million litres per day, up from 18.03 million litres daily in the previous month.
The Fact Sheet showed that imports accounted for 52.1 million litres per day of total consumption, showing an increase from 27.6 million litres per day in October.
The NMDPRA described Dangote’s current output as a significant milestone in reducing Nigeria’s reliance on imported fuel.
In contrast, the NNPC-operated Port Harcourt, Warri, and Kaduna refineries recorded zero petrol output during the period, and all three facilities remained in various states of rehabilitation or shutdown.
According to the regulator, the surge in imports was triggered by low supply levels in September and October 2025, which fell short of national demand, the need to shore up national stock ahead of end-of-year peak consumption, NNPC’s importation efforts to rebuild inventory and ensure supply security, and delayed offloading of 12 vessels initially scheduled for October but discharged in November.
October 2025 recorded the highest consumption within the one-year review period, followed by November 2024 (56 million litres) and April 2025 (55.2 million litres), the report noted.
The data showed that Nigerians also consumed an average of 15.4 million litres/day of diesel daily in November, alongside 2.5 million litres/day of aviation fuel and 3,992 million litres/day of cooking gas.
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