Connect with us


Nigeria’s inflation rate hits 20.5%, highest since 2005



•  More  people are being dragged into poverty because of poor purchasing power; unemployment has risen and will further hurt the economy

Nigerians are struggling as the inflation rate rose by 0.92 basis points to 20.52 per cent in August from 19.6 per cent in July, the highest since October 2005.

This represents the seventh consecutive monthly rise in Headline inflation since February. Food inflation also rose to 23.12 per cent in August 2022, representing a 1.1 percentage-point increase compared to 22.02 per cent recorded in the previous month.

In its Consumers Price Index, CPI, report for August, the National Bureau of Statistics (NBS) said the “increases were recorded in all divisions that yielded the headline index”.

The Bureau stated: “In August 2022, on a year-on-year basis, the headline inflation rate was 20.52 per cent. This was 3.52 percentage points higher compared to the rate recorded in August 2021, which was 17.01 per cent.

“This shows that the headline inflation rate increased in the month of August 2022 when compared to the same month in the preceding year (August 2021). On a month-on-month basis, the Headline inflation rate in August 2022 was 1.77 per cent, this was 0.05 per cent lower than the rate recorded in July 2022 (1.82 per cent).”

On food inflation, NBS further reported: “The food inflation rate in August 2022 was 23.12 percent on a year-on-year basis; which was 2.82 percent higher compared to the rate recorded in August 2021 (20.3 percent).

“This rise in food inflation was caused by increases in prices of bread and cereals, food products, potatoes, yam, and another tuber, fish, meat, oil, and fat. On a month-on-month basis, the food inflation rate in August was 1.98 percent, this was a 0.07 percent decline compared to the rate recorded in July 2022 (2.04 percent). This decline is attributed to a reduction in prices of some food items like yam tubers, garri, local rice, and vegetables.”

In addition to the reasons advanced by NBS, several experts listed other inflationary pressure points, while recommending some solutions.
Professor of Capital Market at Nasarawa State University, Keffi, Uche Uwaleke, reacting to the rise in inflation by 20.52% the highest in two decades, said: “The increase in headline inflation above the psychological threshold of 20% did not come as a surprise in view of the rising inflation trend in many economies, partly caused by the Russian-Ukrainian conflict.

SEE ALSO:  Enugu govt bans unauthorized use of vehicle with tinted glasses

“It’s interesting to note that the NBS, in its latest CPI report, provided a clue as to the major factors driving the inflationary pressure in Nigeria, namely supply disruptions and rising cost of production. In the light of this revelation, what becomes clear is that the recent monetary policy tightening stance of the CBN alone may not address the challenge. The government needs to formulate and implement complementary fiscal policies aimed at boosting food supply as well as reducing firm’s cost of production.”

In his reaction, analyst and Chief Executive Officer, APT Securities & Funds Limited, Mallam Garba Kurfi, said: “I am not surprised with the outcome but I hope it will not further go up as harvesting of our agricultural products will likely push the food cost down. Equally the price of other foods, especially, wheat is globally coming down. We are expecting inflation to fall before the end of the year. But of more concern is the increase of the Monetary Policy Rate, MPR, in the last two consecutive sittings of the Monetary Policy Committee, MPC. We hope the monetary authorities will keep the rate the same for the rest of the year.”

Reacting as well, analyst and CEO, Wyoming Capital and Partners, Tajudeen Olayinka, said: “20.52% inflation number for the month of August 2022, is an indication that demand-side management tools being deployed by CBN to tame inflation in Nigeria may actually be aggravating the situation, given the fact that most of the factors responsible for inflation in Nigeria are traceable to the supply side of the economy. These supply side factors had been there and largely unresolved before the emergence of imported inflation that came as a result of the Russian war on Ukraine.

SEE ALSO:  2023 Election: Angry women protest naked at US Embassy

“Foreign exchange scarcity and exchange rate mismanagement; unending insecurity and limited access to farms; crude oil theft and inability to meet OPEC production quota; high cost of raw materials; infrastructure deficit; highly elevated cost of capital in the economy are some of the dangerous factors bedeviling Nigerian economy. So, it will be difficult for CBN’s demand side management tools to solve the problem. Unfortunately, the fiscal side is weak, with no positive contribution to make at this time, other than to engage in excessive borrowing and fiscal rascality. That is also driving up inflation.”

He further said: “This is not to say CBN is not aware of possible failure of its demand side management tools, or that raising interest rate will not sufficiently address the current inflationary pressure, but because it must also act to address possible threats of reversal of capital flow, arising largely from interest rate hike in Europe and America. These are the issues.”

To solve the inflation rate problem, Olayinka, said: “So, solving this problem requires that global inflationary threat is dealt with by the more advanced economies, while Nigeria’s fiscal authority continues to search for solutions to supply side problems it created. Impact of high inflation is better imagined than real; more people are now being dragged into poverty because of poor purchasing power; unemployment will rise as a result. This will further hurt the economy.”

Reacting, the Nigeria Employers’ Consultative Association, NECA, urged the government to suspend all forms of new taxes and levies to give a respite on the spiking production cost to tackle the rising inflation.

Speaking through its Director-General, Mr Wale Oyerinde, NECA contended that “it is apparent that the government’s intervention so far has not impacted the inflationary pressures that have kept rising.

He stated: “Around the globe, concerns about inflation have led many countries to consider an aggressive approach towards slowing down the economy. Consumers are also beginning to think twice about spending on goods and some services. In Nigeria, it is apparent that the government’s intervention so far has not impacted the inflationary pressures that have kept rising. Rather, some of these interventions have been counterproductive. The recently announced 20.52 percent inflation rate affirms the need for Government to take a second look at current strategies aimed at flattening the curve.

SEE ALSO:  Frank Nweke Jr eulogizes Ojukwu, describes him as a man of great intellect, immense courage

“The key drivers of inflation which includes, worsening currency depreciation, escalating transportation cost, high import duty on manufacturing inputs, security concerns among others have continued to crowd out the government’s interventions.

It leaves us to wonder whether these interventions are truly right for our peculiar challenges. With the crisis between Russia and Ukraine, the rising cost of energy around the world has translated to a significant uptrend being witnessed in most economies as prices of goods and services have reached unprecedented levels.

“To tackle inflation, all forms of new taxes and levies should be suspended to give a respite on the spiking production cost. There should also be deeper stakeholder engagements across sectors to develop an enduring strategy on the way forward. The federal government like its counterpart in other climes must be responsive and deliberate in its efforts to flatten the inflationary pressures.”

Reacting, former National President of National Association of Government Approved Freight Forwarders, NAGAFF, Eugene Nweke, has blamed the Federal Government’s economic policy for the sharp rise in inflation rate.

Speaking with Vanguard on the inflationary situation Nweke said the inflation rate rise will further force companies in the maritime sector to close shops or down-size their workforce.

He said: “The closure of companies will further drive more citizens into poverty. Already the sector is struggling and the government policies are not helping. The ports being the gateway for trading and most goods imported are consumables; The scarce foreign exchange will drive up the cost of goods which will in turn drive up inflation.” – Vanguard.






Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Eid-el-Maulud: Gov. Mbah calls for religious harmony, patriotism, support for gov’t



Enugu State Governor, Dr. Peter Mbah

Governor Peter Mbah of Enugu State has called on Nigerians to learn to coexist peacefully regardless of their religious beliefs, adding that doing so would promote peace and accelerate the country’s development.

In an Eid-el-Maulud message issued by his Senior Special Assistant on Media, Dan Nwomeh, Governor Mbah expressed his congratulations to the Muslim community in the state, Nigeria, and throughout the world as they celebrate the birth of Prophet Muhammad.

Mbah urged the Muslim Ummah to always exhibit the same humility, empathy, and sympathy for the poor and needy as exhibited by Prophet Muhammad, and to not let the lessons of Eid-el-Mualud slip their minds.

He urged the populace to embrace the spirit of patriotism by assisting government initiatives both locally and nationally.

“As we celebrate the birth of the Holy Prophet Muhammad, let me implore our people to take inspiration from his life and practise the virtues of peace, humility, selfless sacrifice, devotion, love of neighbours, and support for the government at all levels.

“In a time like this in the history of our nation, there is much we can learn from the Prophet’s life that will act as a catalyst for nation-building and national growth. We owe it to ourselves to always uphold the law.

“As a state, we will continue to defend our people and residents, guarantee that they live in a safe environment, and make the ultimate sacrifice of escorting whatever unlawful activity there may be out of the state. We are wasting no time in providing the necessary amenities for our people to enjoy decent standard of living, “he said.

SEE ALSO:  Enugu govt bans unauthorized use of vehicle with tinted glasses

Continue Reading


Murder of Oruku Traditional Ruler: Enugu court remands Police Inspector Dennis, Moses Nnamani



• In the dock: Police Inspector Daniel Dennis and Moses Nnamani at Enugu Magistrate Court on Tuesday
An Enugu State Magistrate Court sitting in Enugu North, on Tuesday, remanded 46-year-old Inspector Daniel Dennis and one Mr Moses Nnamani for allegedly killing Igwe Emmanuel Chidiebere Mbah, the traditional ruler of Oruku community in Nkanu East local government area of Enugu State.

The Advocate reports that the arraignment of the 46-year-old police officer and Nnamani, a 57-year-old native of Oruku, came 2 years and 8 months after the gruesome murder of the monarch, who was committed to the restoration of peace in Oruku, a hitherto peaceful community that had been devastated by endless communal feud.

Several lives and property worth millions of naira had been lost on account of the senseless conflict while the community has long been deserted by the natives.

It was learnt that the Nigeria Police Force on September 14, this year,  finally released the police Inspector who allegedly shot and killed the traditional ruler and one of his collaborators, who led the police team to the scene of the incident, for trial.

The younger brother of the late traditional ruler, Mr Ejike Mbah, had on Monday, September 11, 2023 petitioned the Minister of Justice and Attorney General of the Federation, Lateef Fagbemi, SAN, asking him to intervene and ensure the prosecution of the Police Inspector  and his collaborators.

The traditional ruler was allegedly shot and killed on December 26, 2020, by Inspector Dennis who was attached to the Special Weapons and Tactics (SWAT) unit of the police, while he was addressing an annual general meeting of his community.

SEE ALSO:  Frank Nweke Jr eulogizes Ojukwu, describes him as a man of great intellect, immense courage

On Tuesday, the Enugu State Police Command arraigned the duo on two counts bordering on conspiracy and murder in a suit numbered CME/673c/2023

The presiding Magistrate, (Mrs) Ngozi Edeani, subsequently remanded the duo at the Enugu Maximum Correctional Custodial Centre after the charges were read to them because the court had no jurisdiction on the matter.

The two-count charge obtained by The Advocate reads: “That you Moses Nnamani ‘m’, Daniel Dennis ‘m’, others now in Correctional Centre, Enugu in Charge No. CME/100C/2022 and CME/158C/2022-C.O.P vs. Emmanuel Nwobodo and others now at large on the 26th day of December 2020 at about 1400hours at Oruku Community in Nkanu East Magisterial District holden in Enugu did conspire among yourselves to commit felony to wit: Murder and thereby committed an offence punishable under Section 494 of the Criminal Code, Cap 30, Vol. II, Revised Laws of Enugu State of Nigeria 2004.

“That you Moses Nnamani ‘m’, Daniel Dennis ‘m’, others now in Correctional Centre, Enugu in Charge No. CME/100C/2022 and CME/158C/2022- C.O.P vs. Emmanuel Nwobodo and others now at large on the same date, time and place in the aforementioned Magisterial District did unlawfully kill the Traditional Ruler of Oruku Community, HRH Igwe Emmanuel Chidiebere Mbah ‘m’ by shooting him with a gun which led to his death and thereby committed an offence punishable under Section 274(1) of the Criminal Code, Cap 30, Vol. II, Revised Laws of Enugu State of Nigeria 2004.”

Meanwhile, the court adjourned to October 18, 2023, to get the opinion of the Director of Public Prosecutions.

SEE ALSO:  Gunmen attack Tompolo’s speedboat in Bayelsa

The Charge sheet:

Continue Reading


How Gateman plotted kidnap of master’s mother in-law, Nanny, Baby in Enugu – Police



• Suspects paraded by Enugu State Police Command on Tuesday
• Twelve kidnap victims rescued
The police in Enugu on Tuesday revealed how one Kelechi Okwara aged 27, from Ohafia, Abia State, allegedly conspired with his brother serving as a gateman and kidnapped his master’s mother in-law, his nanny and little baby.
The incident occurred in Enugu last Saturday, September 23,2023, according to the State Police Commissioner, CP Kanayo Uzuegbu.
The gateman who is now at large was working in a house in Trans-Ekulu Enugu when they plotted the kidnap.
Kelechi and his gateman brother had taken the victims to an unknown destination, on 23/09/2023 at about 8pm, demanded and obtained a ransom of N3 million from the said master.
They were said to have used the proceed to buy a red coloured Toyota Corolla car, which was recovered upon his arrest last Sunday 24/09/2023 at about 6.30pm at Nokpa/Ezimma Nike boundary point, by Police Operatives in Abakpa and Trans-Ekulu Police Divisions, with assistance from Neighbourhood Watch Group.

Kelechi was among 92 suspected criminals arrested between August 16 and September 25 and paraded Tuesday by the Enugu State Police Command.

The suspects were arrested for cultism, robbery, murder, kidnapping and unlawful possession of firearms.

Items recovered from them included four AK 47 rifles, 66 other firearms of different calibres, 333 live ammunition of different calibres, 25 vehicles and several other incriminating items such as charms and phones.

Addressing his maiden press conference as the 28th commissioner of police in Enugu, the CP, Kanayo Uzuegbu, disclosed that  12 kidnapped victims were also rescued from various parts of the state within the period under review.
Uzuegbu, who said the task of effectively policing the society is daily becoming daunting, however said he had since assumption of duty, ensured that the right policing strategies are devised to tackle existing and emerging security challenges in the State.

“These strategies are subsumed in my grassroots-driven, proactive, people-oriented and problem-solving policing thrust, which is in line with the policing Vision and Mission of the Acting Inspector-General of Police, IGP Kayode Adeolu Egbetokun, PhD, NPM.

SEE ALSO:  Gunmen attack Tompolo’s speedboat in Bayelsa

“In view of this, I have met and interacted with critical security stakeholders, including local government chairmen, traditional rulers, heads of other security agencies and many others, on the best ways to collectively tackle security challenges in the State. These engagements I must tell you have started paying off, as we are making remarkable progress in tackling violent crimes of kidnapping, armed robbery and the criminal activities of subversive criminals.

“It is a known fact that it is humanly impossible to totally eliminate crimes in human society. However, I want to assure the good people of Enugu State and visitors that we remain committed to ensuring that maximum security and tranquility are maintained in the State”.

Continue Reading