Economy
Nigeria’s Inflation Now 16.47% as Food Index Hits 20.57%
By Dipo Olowookere
Things are not getting better in Nigeria and the latest figures from the National Bureau of Statistics (NBS) on the consumer price index, (CPI), which measures inflation, confirms this.
On Tuesday morning, the stats agency in Nigeria revealed that inflation increased year-on-year in January 2021 by 16.47 per cent, 0.71 per cent higher than the 15.75 per cent recorded in December 2020.
Business Post reports that the inflation, rather than moderating after the federal government ordered the reopening of four of the land borders, is rising.
All the land borders were closed in August 2019, putting pressure on the supply of food in the country because some food items could not come into the nation.
This was made worse because the local capacity could not cater to the demand and security issues in the northern part of the country, where most of the food items are grown, significantly cut supply.
In the report released today, the NBS said on a month-on-month basis, the headline index jumped by 1.49 per cent in January 2021 compared with 1.61 per cent in December 2020.
According to the agency, the percentage change in the average composite CPI for the 12 months period ending January 2021 over the average of the CPI for the previous 12 months period was 13.62 per cent as against 13.25 per cent in December 2020.
It was further disclosed that last month, the urban inflation rate increased by 17.03 per cent year-on-year in contrast to 16.33 per cent a month earlier, while the rural inflation rate rose by 15.92 per cent in January 2021 from 15.20 per cent in December 2020.
The NBS data also stated that in January 2021, all items inflation on a year-on-year basis was highest in Kogi at 21.38 per cent, Oyo at 20.17 per cent and Bauchi at 19.52 per cent, while Kwara at 13.96 per cent, Abuja at 12.96 per cent and Cross River at 12.22 per cent recorded the slowest rise in headline year-on-year inflation.
Business Post reports that in the period under consideration, the composite food index rose by 20.57 per cent versus 19.56 per cent in December 2020.
This spike in the food inflation was attributed to increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetable, fish and oils and fats.
The data revealed that the food inflation on a year-on-year basis was highest in Kogi at 26.64 per cent, Oyo at 23.69 per cent and Rivers State at 23.49 per cent, while Ondo at 17.20 per cent, Abuja at 16.73 per cent and Bauchi at 16.37 per cent recorded the slowest rise.
By Aduragbemi Omiyale
Nigeria slightly surpassed its quota set by the Organisation of the Petroleum Exporting Countries (OPEC) in July 2026.
In the month under review, the country produced about 1.57 million barrels of crude oil per day.
It was the third consecutive month Africa’s largest oil-producing nation was meeting its monthly quota, set to stabilise the price of the commodity on the global market by the oil cartel.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday showed that the 1.5 million barrels per day ceiling for Nigeria was surpassed last month.
The agency disclosed in a statement today that the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate, bringing the combined daily production to 1.67mbpd.
In the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.
Although Nigeria met its OPEC quota in the month of July, the statistics show that on a month-on-month basis, production fell by 4 per cent.
This was attributed to the decline in production due to operational challenges experienced at the Erha and Akpo fields, which impacted crude oil output during the period under review.
These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures aimed at maintaining production efficiency and minimising the impact of operational constraints, NUPRC stated.
By Aduragbemi Omiyale
The over 9 billion shares of Lasaco Assurance Plc issued to shareholders of the company via a rights issue have been listed on the Nigerian Exchange (NGX) Limited.
The equities were brought to Customs Street on Wednesday by the organisation, increasing its total issued and fully paid-up share capital.
Lasaco Assurance, which scaled the recapitalisation hurdle of the National Insurance Commission (NAICOM) in July 2026, raised fresh capital from the capital market to shore up its capital base.
The underwriting firm got about N18.5 billion from the rights issue, which involved the issuance of 9,236,321,546 ordinary shares at a unit price of N2.00.
The exercise was on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
Confirming the listing of the additional stocks of Lasaco Assurance today, the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, announced in a circular that, “Trading licence holders are hereby notified that an additional 9,236,321,546 ordinary shares of 50 Kobo each of Lasaco Assurance Plc were today, Wednesday, August 12, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 9,236,321,546 ordinary shares of 50 Kobo each at N2.00 per share on the basis of five new ordinary shares for every existing six ordinary shares held as of the close of business on Friday, February 20, 2026.
“With the listing of the additional 9,236,321,546 ordinary shares, the total issued and fully paid-up share capital of Lasaco Assurance Plc has now increased from 11,083,585,855 to 20,319,907,401 ordinary shares of 50 Kobo each.”
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has said the successful recapitalisation of the insurance industry will strengthen the sector’s ability to support financial stability and economic growth.
NIA Chairman, Mrs Ebelechukwu Nwachukwu, said a well-capitalised insurance industry would be better positioned to meet its obligations promptly, underwrite complex and large-scale risks and serve as a dependable pillar of the Nigerian economy.
She made the remarks while commending the National Insurance Commission (NAICOM) for its structured implementation of the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Mrs Nwachukwu said NAICOM’s clear guidelines, systematic verification process, defined timelines and rigorous supervision had provided operators with a credible framework for navigating the recapitalisation exercise.
She described the outcome as a major milestone for the industry and congratulated the 43 insurance and reinsurance companies that have successfully met the prescribed minimum capital requirements.
According to her, the exercise represents “a major win not just for regulators and operators, but for policyholders, investors and the wider Nigerian economy.”
Mrs Nwachukwu said the association would continue to work with NAICOM and other stakeholders to consolidate the gains of the exercise, with emphasis on sustainable industry growth, stronger market conduct and improved consumer confidence.
The official also expressed solidarity with the eight companies still undergoing final verification and regulatory review, urging them to remain confident as NAICOM completes the process within the 14-day review period.
The NIA chairman assured policyholders and the wider business community that the insurance industry would emerge from the recapitalisation exercise stronger, more resilient and better positioned to contribute to Nigeria’s economic development.
