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Economy

Inflation in Nigeria Reaches 12.34% in April

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inflation rate Nigeria

By Modupe Gbadeyanka

Inflation in Nigeria increased to 12.34 percent year-on-year in the month of April 2020, data from the National Bureau of Statistics (NBS) said on Thursday afternoon.

The agency said the inflation figure recorded a marginal 0.08 percent increment when compared with the rate it was in March 2020, which was 12.26 percent.

The rise was attributed to increase in food prices during month as well as the effect of the lockdown in the whole of April due to the coronavirus pandemic.

According to the NBS, the composite food index last month rose by 15.03 percent from 14.98 percent in March 2020

“This rise in the food index was caused by increases in prices of potatoes, yam and other tubers, bread and

cereals, fish, oils and fats, meat, fruits and vegetables,” a report from the Mr Yemi Kale-led agency said.

The inflation figure for April fell below projections made by analysts, including the Financial Derivatives Company, which forecast about 14 percent rise due to the movement cessation in the month.

The stats office said on month-on-month basis, the headline index increased by 1.02 percent in April 2020, about 0.18 percent rate higher than the rate recorded in March 2020, 0.84 percent.

The agency stated that the urban inflation rate increased by 13.01 percent year-on-year in April 2020 from 12.93 percent recorded in March 2020, while the rural inflation rate increased by 11.73 percent in April 2020 from 11.64 percent in March 2020.

In addition, on a month-on-month basis, the urban index rose by 1.06 percent in April 2020, up by 0.18 from 0.88 percent recorded in March 2020, while the rural index also rose by 0.98 percent in April 2020, up by 0.18 from the rate recorded in March 2020, 0.80 percent.

It further said the corresponding 12-month year-on-year average percentage change for the urban index was 12.26 percent in April 2020. This is higher than 12.15 percent reported in March 2020, while the corresponding rural inflation rate in April 2020 was 11.20 percent compared with 11.14 percent recorded in March 2020.

The NBS said in April 2020, all items inflation on year-on-year basis was highest in Bauchi (14.44 percent), Sokoto (13.99 percent) and Plateau (13.68 percent), while Edo (10.87 percent), Abuja (10.81 percent) and Kwara (8.98 percent) recorded the slowest rise in headline year-on-year inflation.

On month-on-month basis, however, April 2020 all items inflation was highest in Akwa Ibom (2.01 percent), Oyo (1.91 percent) and Abia (1.81 percent), while Edo, Enugu and Bayelsa recorded price deflation or negative inflation (general decrease in the general price level or negative inflation rate).

Furthermore, In April 2020, food inflation on a year on year basis was highest in Sokoto (17.88 percent), Akwa Ibom (17.55 percent) and Abuja (17.65 percent), while Ebonyi (13.04 percent), Edo (12.90 percent) and Enugu (12.89 percent) recorded the slowest rise.

On month-on-month basis, however, April 2020 food inflation was highest in Akwa Ibom (2.65 percent), Lagos (2.49 percent) and Oyo (2.33 percent), while Bayelsa, Ebonyi and Enugu recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Economy

Controversial Tax Reform Bills Scale Second Reading at House of Reps

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tax reform bills

By Adedapo Adesanya

The four tax reform bills transmitted to the National Assembly last year by President Bola Tinubu have finally scaled second reading in the House of Representatives.

The bills, which have generated criticisms across the country, scaled the second reading on the floor of the Green Chamber on Wednesday, five months after the President transmitted them to the parliament for consideration following the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms led by a tax expert, Mr Taiwo Oyedele.

The bills include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

They are gearing up for public hearing, which should be announced soon.

The four bills met minimal opposition in the Senate but faced a higher level scrutiny at the 360-member House of Reps as well as criticisms from northern statesmen, including governors and leaders.

During the midweek plenary, Mr Sada Soli feared that some sections of the new bills might contradict the 1999 constitution. According to the lawmaker, the issue of derivation must be clearly defined to avoid any ambiguity.

He was hopeful that the committee saddled with the responsibility to scrutinise the bills would address the issues that might arise before the bills are passed.

Other lawmakers also drew attention to the 40 acts which the bill sought to amend and requested they should be laid before the National Assembly.

The lawmakers said the issue of multiple taxation involving property purchase provided in the bill should be addressed, as the provision stated that the buyer and seller must pay tax.

In response, the Chairman of the tax reforms committee, Mr Oyedele, who has tirelessly defended the bills since they were presented, lauded the efforts of the lawmakers.

“We are grateful to the lawmakers for their robust debates and diligent consideration of the bills and look forward to continued engagement with the National Assembly and active participation in the public hearing process.

“May Nigeria win!,” he wrote.

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Economy

NASD Unlisted Security Index Slips 0.49%

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NASD Unlisted Security Index

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange fell by 0.49 per cent on Tuesday, February 11 as investors recalibrated their portfolios, selling off some securities they fell have yielded returns since they were acquired from the market.

This action by the market participants depleted the value of the trading platform by N8.86 billion during the trading session to N1.803 trillion from the N1.812 trillion it closed in the preceding session and the NASD Unlisted Security Index (NSI) went down by 15.65 points to settle at 3,184.02 points compared with 3,199.67 points recorded at the previous session.

UBN Property Plc declined by 17 Kobo to end at N2.05 per share compared with Monday’s closing price of N2.22 per share, Geo Fluids Plc decreased by 30 Kobo to N4.24 per unit from N4.54 per unit, Central Securities Clearing System (CSCS) Plc lost N1.50 to settle at N23.00 per share versus N24,50 per share, and FrieslandCampina Wamco Nigeria Plc crumbled by 12 Kobo to close at N39.98 per unit, in contrast to the preceding session’s N40.10 per unit.

Conversely, Air Liquide Plc appreciated by 41 Kobo to N8.33 per share from N7.92 per share and Afriland Properties Plc increased by 75 Kobo to sell for N18.65 per unit versus N17.90 per unit.

During the trading session, there was a 270.2 per cent rise in the volume of securities traded by investors to 1.9 million units from 502,112 units, the value of securities transacted grew by 223.4 per cent to N48.2 million from N14.9 million, and the number of deals went up by 63.2 per cent to 31 deals from 19 deals.

Impresit Bakolori Plc finished the day as the most active stock by value (year-to-date) with 519.5 million units worth N504.3 million, trailed by FrieslandCampina Wamco Nigeria Plc with 7.4 million units valued at N293.2 million, and Geo-Fluids Plc with 9.3 million units sold for N44.8 million.

Similarly, Impresit Bakolori Plc ended the session as the most active stock by volume (year-to-date) with 519.5 million units worth N504.3 million, followed by Industrial and General Insurance (IGI) Plc with 69.6 million units sold for N23.6 million, and Geo-Fluids Plc with 10.7 million units valued at N51.2 million.

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Economy

Naira Down to N1,504/$1 at Official Market, N1,580/$1 at Black Market

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Official FX Market

By Adedapo Adesanya

The Naira depreciated again at the Nigerian Autonomous Foreign Exchange Market (NAFEM) against the US Dollar on Tuesday by N1.19 or 0.08 per cent to trade at N1,504.30/$1 compared with the preceding day’s N1,503.11/$1.

However, the domestic currency improved its value against the Pound Sterling at the official market yesterday by N12.78 to wrap the session at N1,855.98/£1 compared with the preceding day’s N1,868.76/£1 and against the Euro, it gained N9.36 to trade at N1,545.82/€1, in contrast to Monday’s closing price of N1,555.18/€1.

A look at the black market segment of the forex market showed that the Nigerian Naira weakened against the greenback on Tuesday by N10 to sell for N1,580/$1 compared with the previous day’s value of N1,570/$1.

Meanwhile, the cryptocurrency market was down yesterday after comments by the US Federal Reserve’s chairman, Mr Jerome Powell, dampened the market. 

Appearing before the US Senate Banking Committee, Mr Powell said he is worried about concerns over the debanking trend plaguing the crypto industry and is already tweaking internal supervision policies at the central bank.

He also suggested that crypto stablecoins may have a big future and he supports work on regulation for them, a move that defeats the entire deregulation appeal of cryptocurrencies.

The Fed chair then said the US economy is in a good place and saw no reason to rush ahead with further rate cuts.

At the digital currency market yesterday, Litecoin (LTC) fell by 8.8 per cent to $117.63, Dogecoin (DOGE) depreciated by 4.3 per cent to sell at $0.2534, Solana (SOL) also slumped 4.3 per cent to trade at $195.57, and Ethereum (ETH) slid by 3.6 per cent to quote at $2,609.42.

In addition, Cardano (ADA) went down by 3.5 per cent to settle at $0.767, Ripple (XRP) dropped 3.4 per cent to finish at $2.41, Bitcoin (BTC) shrank by 2.3 per cent to $95,907.63, Binance Coin (BNB) depreciated by 0.6 per cent to $633.65, and the US Dollar Tether (USDT) slumped by 0.03 per cent to $0.9999, while the US Dollar Coin (USDC) remained unchanged at $1.00. 

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