Nigeria’s Inflation for April to Hit 14%—FDC Analysts

Image

By Modupe Gbadeyanka

Last month, the National Bureau of Statistics (NBS) announced that inflation rate in Nigeria for the month of March 2020 increased to 12.26 percent.

One of the reasons for the rise was the continuous spike in the price of food items at the market caused by the border closure.

On March 29, 2020, President Muhammadu Buhari, in a nationwide broadcast, announced a lockdown of Lagos, Abuja and Ogun State to control the spread of Coronavirus in the country.

However, this did not affect the inflation rate for the month as pointed out by the stats office, which said in its report that “the lockdown in Abuja, Lagos and Ogun states and various major disruptions in normal economic activity in several states since then, started in April 2020 and accordingly would not have any major impact on March 2020 inflation which this report focuses on.”

The lockdown was only lifted on Monday, May 4, 2020 and during the period the movement cessation lasted, only businesses rendering essential services were allowed to operate, disrupting supply chain even for some food items, which were part of the essentials allowed to open.

Last month, Business Post reported that members of the Catfish and Allied Fish Farmers Association of Nigeria (CAFFAN) urged federal government to grant them special movement permit for the transportation of fish and its products from various fish farms to areas of need within the country.

National President of CAFFAN, Mr Rotimi Oloye, had said, “The inability of fish farmers to have access to their farms would have a multiplier effect across the fish value chain.”

According to him, this special permit was necessary to curb losses in the fish farming value chain during the lockdown declared by government in Lagos, Ogun and Abuja.

With the adverse event of lockdown in the three places, analysts at Financial Derivates Company (FDC) have said inflation rate in the month of April 2020 will likely jump by 1.74 percent.

In the company’s latest edition of Unity Bank Digest, it was disclosed that the lockdown induced by the the COVID-19 pandemic will probably lead the inflation to an eighth consecutive month rise to 14 percent.

“Headline inflation rose marginally to 12.26 percent (in March) from 12.20 percent in February.

“The slight uptick was mainly due to the base year effects of the border closure and the implementation of the new VAT rate (7.5 percent).

“March inflation figures did not reflect the adverse effect of the lockdown as the directive took full effect in April.

“As a result of the lockdown, businesses were shutdown, supply chains disrupted and panic buying commenced.

“On average, some domestic commodities prices spiked by over 50 percent.

“In all, it is expected that inflationary pressures will intensify and headline inflation for April could spike to 14 percent,” the analysts said.

Share
Related Stories
Image
01-March-2024

Foreign Capital Into Nigeria’s Energy Industry Plunges 42.8% to $3.64bn in 2023

By Adedapo Adesanya Foreign capital inflows, which gauges the level of foreign investment into the country, through the Nigerian oil and gas industry in 2023 dropped by 42.8 per cent to $3.64 million from the $6.37 million recorded in 2022. This is contained in the latest data obtained from the Nigeria capital importation report for the fourth quarter of 2023 released recently by the National Bureau of Statistics (NBS). The NBS revealed that total foreign capital inflow into the oil and gas sector in 2023 accounted for 0.09 per cent of total foreign capital inflow into the Nigerian economy in

Image
29-February-2024

Nigeria Needs Policies that Prioritize Economic Recovery—Peter Obi

By Adedapo Adesanya The presidential candidate of the Labour Party in the 2023 general elections, Mr Peter Obi, has raised concerns over the recent decision of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to increase the Monetary Policy Rate (MPR) to 22.5 per cent and the Cash Reserve Ratio (CRR) to 45 per cent. Mr Obi warned that this move is likely to worsen the ongoing economic challenges faced by many Nigerian households, and emphasized the need for policies that prioritize economic recovery. In a statement issued via X (formerly Twitter), the businessman and former

Image
01-March-2024

Unlisted Securities Remain in Negative Territory by 1.36%

By Adedapo Adesanya Correction at the NASD Over-the-Counter (OTC) Securities Exchange continued as it recorded a 1.36 per cent loss on Thursday, February 29. The bourse lost N21.34 million of its value during the trading session to close at N1.542 trillion compared with the preceding day’s N1.564 trillion and the NASD Unlisted Security Index (NSI) went down by 15.74 points to end the day at 1,138.05 points versus Wednesday’s 1,153.79 points. Yesterday’s decline was influenced by Aradel Holdings Plc, which further suffered further profit-taking, causing its price to drop N98.25 to close at N2,401.75 per share versus the preceding session’s

More Stories
Image
22-June-2022

Stock Exchange up 0.66% as Traders Recover N180bn

By Dipo Olowookere The Nigerian Exchange (NGX) Limited had a breather on Tuesday, appreciating by 0.66 per cent after reporting losses in the last five consecutive trading sessions. Dangote Cement, Oando, Access Holdings, Seplat and 10 others inspired the recovery witnessed yesterday, though the negative investor sentiment still persists as 22 stocks lost points during the session. From the analysis of the data from the bourse, the industrial goods, energy and banking counters appreciated by 3.86 per cent, 0.68 per cent and 0.38 per cent apiece, while the consumer goods and insurance sectors depreciated by 0.11 per cent and 0.06

Image
18-March-2020

Brent Falls to $30 as Saudi Ramps up Supply to 10m Barrels/Day

By Adedapo Adesanya  Brent crude fell to $30 per barrel on Tuesday as Saudi Arabia took matters a step further in the oil war with Russia as it announced reasons to ramp up production to 10 million barrels per day. This is coming in a period the oil market has been impacted heavily by the coronavirus, which has forced governments to close its borders, leading airlines to cut the number of flights daily. Last night, the Brent traded down by 4.2 percent or $1.33 to precisely sell at $30.36, while the US West Texas Intermediate (WTI) crude futures was down

Image
12-November-2022

NASD Exchange Slides 0.03% Despite No Price Movement

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchanged slid by 0.03 per cent on Friday, November 12, despite not recording any price movement. During the session, the bourse lost N250 million to settle at N939.25 billion compared with the previous day’s value of N939.50 billion, as the NASD Unlisted Securities Index (NSI) went down by 0.19 points to wrap the session at 714.80 points compared with 714.99 points recorded at the previous session. There was a slide in the volume of securities traded during the session as investors transacted 2,524 units of shares, 100 per cent lower than the 234.9

Image
03-August-2020

Criticism Highlights Russia’s Media Weakness in Africa

By Kester Kenn Klomegah In her weekly media briefing July 23, Russia’s Foreign Ministry Spokeswoman, Maria Zakharova, criticised the United States support for educational programs, media and NGOs in Africa. In addition, Zakharova said, “the allocation of grants fits into the White House’s efforts to promote the idea that there is no alternative to Western concepts regarding state governance and the imposition of alien values on sovereign states, and this represents another manifestation of neo-colonialism and an element of covertly formalizing inequality in the overall system of international ties.” Russia’s position as contained in her briefing is available on the

Image
11-April-2022

Leaders Beg Obasa to Ditch Senate Ambition for Lagos Assembly Return

By Aduragbemi Omiyale The Speaker of the Lagos State House of Assembly, Mr Mudashiru Obasa, has been urged to focus on a return to the state parliament and ditch his ambition to run for the Senate in 2023. On Sunday evening, some leaders in the Agege and Orile-Agege areas of Lagos State said they would want him to still represent them at the local level before taking a shot at the federal level. They said he has brought pride to the communities and would want him to still serve them at the Lagos Assembly through effective legislation and related activities,

Image
20-August-2021

UBN Property, Friesland Depress NASD by 0.11%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) returned in the negative territory on Thursday after two securities dragged the market down by 0.11 per cent. At the close of the market yesterday, the NASD Unlisted Security Index (NSI) decreased by 0.83 points to 736.89 points from 737.72 points recorded at the previous session, while the market capitalisation reduced by N540 million to N640.48 billion from N641.02 billion it ended on Wednesday. This poor outcome was caused by FrieslandCampina WAMCO Plc and UBN Property Plc. Friesland depreciated during the session by 50 kobo or 0.4 per cent to N120 per share

Image
03-May-2019

Jumia Announces On-Demand Delivery Deal With Pizza Hut

By Modupe Gbadeyanka A deal meant to make lovers of quality pizzas have the food item promptly delivered to their doorsteps has been signed between Jumia and Pizza Hut. Managing Director of Jumia’s food marketplace, Mr Guy Futi, explained that the partnership is expected to boost operational performance and last mile delivery in Nigeria. Addressing newsmen at a press conference held at Pizza Hut in Lagos, Mr Futi said, “As the premier food delivery business in Nigeria, we are opening up our platform to enable our customers to order pizza from Pizza Hut while ensuring that it is delivered at

Image
22-January-2020

BREAKING: Jumia Nigeria Gets New CEO

By Dipo Olowookere Co-founder of Jumia Group, Mr Jeremy Hodara, has announced Mr Massimiliano Spalazzi, as the new Chief Executive Officer of Jumia Nigeria. Mr Massi, as he is fondly called, is taking over from Ms Juliet Anammah, who has piloted affairs of the e-commerce giant in Africa since early 2016 after she was appointed for the position in late 2015. At a media parley in Lagos, Mr Hodara said Ms Anammah will be taking a new role at Jumia Africa and would also be the Chairwoman of Jumia Nigeria. More details later

Ad
Ad
Recent Stories
Image
02-March-2024

JUST IN: Nollywood Star Mr Ibu Dies

By Modupe Gbadeyanka Information just reaching Business Post indicates that popular Nigerian actor, Mr John Okafor, otherwise known as Mr Ibu, is dead. It was gathered that the Nollywood star breathed his last on Saturday in a hospital in Lagos. His demise comes a day after the Nigeria film industry lost an actor, Mr Tolani Quadri Oyebamiji, well-known as Sisi Quadri. Mr Ibu underwent a surgery, which led to the amputation of one of his legs. He was later discharged from the hospital, but was reportedly taken back. Until his death, he acted in several movies. He was well known

Image
02-March-2024

African Bishops Seek Overhaul of Financial System as Debt Burden Worsens

African Catholic Bishops called for an overhaul of the financial system to address health, climate, food and other challenges the region faces. Ahead of a gathering of African Finance Ministers in Victoria Falls, Zimbabwe, the Justice, Peace and Development Commission of the Catholic Symposium of Episcopal Conferences of Africa and Madagascar (SECAM) outlined reforms for debt relief, development resources and governance. “In Sub-Saharan Africa the number of people facing food insecurity stress or crisis has more than doubled since 2019, reaching 420 million people last year,” noted the bishops in a statement. A delegation representing the African Bishops and religious

Image
02-March-2024

MTF Class of 2023 to Premiere Her Dark Past, Grown

By Modupe Gbadeyanka Two feature films will be premiered this weekend exclusively on the Africa Magic Showcase channel 151 and Africa Magic Urban channel 153 by the students of the MultiChoice Talent Factory (MTF). The two pieces of art titled Grown and Her Dark Past are the final projects of the MTF Class of 2023 students, a statement from the organisation said. The MTF is a leading film school in West Africa for young, talented and passionate filmmakers. It was established by the media platform to grow the region’s creative industry. Grown premieres on Africa Magic Showcase at 8.30 pm

Image
02-March-2024

Mandela’s Heirs Lose Power in South Africa

By Alexander Braterskiy South African authorities warn that if the opposition wins the parliamentary elections, the country may change course and leave the informal BRICS economic bloc, which includes Russia. The position of the African National Congress party, which has been in power since the collapse of apartheid, is indeed not the best, as shown by the municipal elections held earlier in the country. The opposition accuses the president of corruption and abuse of power, as well as an inability to cope with the country’s energy crisis. The ANC crisis occurred on the 30th anniversary of the first free elections

Image
02-March-2024

CAA Reaffirms Commitment to Climate Innovation for Sustainable Future

By Modupe Gbadeyanka A leading social enterprise focused on environmental sustainability, Climate Action Africa (CAA), has reaffirmed its commitment to being at the forefront of driving climate innovation for a sustainable future. The organization, which is a key participant at the four-day Omniverse Summit 2024 in Lagos, emphasised the need to integrate environmental sustainability models, technology, and community-driven innovation to address climate change challenges. It promised to foster an inclusive climate action ecosystem through innovation, which it said can be used to identify and scale solutions to address the imminent climate crisis in Nigeria and Africa as a whole, The

Image
02-March-2024

Endosurvivors Foundation Set For Another Endometriosis Awareness

By Adedapo Adesanya EndoSurvivors International Foundation (ESIF), an NGO championing endometriosis awareness in Nigeria, has announced its upcoming events in commemoration of the Global Endometriosis Advocacy Month in March, fondly tagged March4Endo by advocates all over the world.  Endometriosis is a chronic and inflammatory condition that affects approximately 1 in 10 girls and women in Nigeria and on a global scale. This sums up to about 190 million affected girls/women around the world, about the population of Nigeria in 2018.  The World Health Organisation (WHO) recognizes that endometriosis has significant social, public health, and economic implications leading to a decrease

Image
02-March-2024

CSCS, FrieslandCampina Lift NASD OTC Bourse by 0.31%

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange returned to the positive territory after it gained 0.31 per cent on Friday, March 1, thanks to the duo of Central Securities Clearing System (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc. CSCS Plc added 81 Kobo to its value to sell for N19.46 per unit compared with the preceding day’s N18.65 per unit, and FrieslandCampina improved by N1.15 to settle at N71.4o per share, in contrast to Thursday’s closing price of N70.25 per share. However, Aradel Holdings Plc continued its price depreciation yesterday as it shed N6.75 to sell at N2,395.00

Image
02-March-2024

Naira Now N1,548.25 at Official Market, N1,560/$1 at Black Market

By Adedapo Adesanya The Naira sustained its gradual recovery against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, March 1, appreciating by 2.94 per cent or N46.86 to sell at N1,548.25/$1, in contrast to the N1,595.11/$1 it was traded on Thursday. Also, in the spot market, the Nigerian currency improved its value against the Pound Sterling during the trading day by N90.13 to close at N1,956.06/£1 versus the previous day’s N2,046.19/£1 and against the Euro, it gained N76.39 to trade at N1,675.25/€1, in contrast to the N1,751.64/€1 it closed a day earlier. The supply of

Image
02-March-2024

Crude Oil Jumps 2% as Traders Sight Possible OPEC+ Cuts

By Adedapo Adesanya Crude oil appreciated by about 2 per cent on Friday as traders awaited a decision from the Organisation of the Petroleum Exporting Countries and allies (OPEC+) on supply agreements for the second quarter. Yesterday, the price of Brent futures went up by $1.64 or 2 per cent to $83.55 per barrel and the US West Texas Intermediate (WTI) futures rose by $1.71 or 2.19 per cent to $79.97 a barrel. For the week, Brent added around 2.4 per cent while WTI gained more than 4.5 per cent. Analysts noted that the expectation that OPEC+ is going to

Image
02-March-2024

NGX Indices Nosedive by 1.23% as Traders Resume Profit-Taking

By Dipo Olowookere The bears made a quick return to the Nigerian Exchange (NGX) Limited after leaving the stage for the bulls for a day as investors reassessed the impact of the hike in the benchmark interest rate by the Central Bank of Nigeria (CBN) on Tuesday on their investments. On Friday, the key performance indicators of the bourse closed lower by 1.23 per cent as a result of renewed selling pressure, especially in the energy and industrial goods sectors. Business Post reports that at the close of transactions on the first trading session of March 2024, the industrial goods