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Higher food prices, forex pressures push inflation to 29%

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Food, forex pressures push inflation to 29%
• Food prices soar
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Soaring food prices and foreign exchange pressures may have pushed up push inflation rate beyond 29 per cent, it was learnt yesterday.

The National Bureau of Statistics (NBS) will today release the Inflation Report.

Intelligence reports by many economic and finance firms surveyed yesterday by The Nation showed that inflation may have risen by between 50 to 80 basis points last month, the highest since August 2005.

But, experts expressed optimism that early gains from the reforms introduced by the government would ease the pressure on Nigerians and put the economy steady path of recovery.

The increase in inflation in December 2023 indicated that average costs of basic living items rose for every month last year.

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Ahead of today’s release of the inflation report by the NBS, independent consumer surveys and econometric models indicated that inflation remained unabated, although the momentum of price increases appeared to be slowing down.

The reports indicated that inflation may rise from 28.2 per cent in November 2023 to estimated ceiling of about 29 per cent in December 2023. It had started the year with 21.8 per cent in January 2023.

Analysts at Afrinvest West Africa expected inflation at 29.0 per cent while Financial Derivatives Company (FDC) estimated current inflation at 28.7 per cent.

Experts agreed that the increase in inflation rate was due mainly to naira depreciation, foreign exchange (forex) pressure and the lingering effect of the removal of subsidy on premium motor spirit (PMS), otherwise known as petrol.

FDC noted that while December inflation will be at a record high and raises concern of Nigeria becoming an outlier, Nigeria will likely see moderation in inflation in 2024.

The Bismarck Rewane-led FDC pointed out that “inflation is estimated to decline in 2024”, noting that inflation expectations are more important than historical inflation.

“Though, inflation in Nigeria has increased consistently in 2023, many experts are projecting a significant decline in 2024. According to EIU, inflation in Nigeria is expected to fall to 23.6 per cent in 2024 and 17 per cent in 2025. These projections are not unrealistic, as Nigeria is likely to see a moderation in inflationary pressures in second half 2024,” FDC stated.

Rewane urged the government to back up its revenue reforms with increased fiscal spending and unlocking the economy from several bottlenecks.

According to him, in order to balance the reforms, government should implement two contemporaneous actions, including boosting fiscal spending to increase earnings for businesses and households and to prioritize removing the embedded structural bottlenecks that bookend extreme poverty, constrained growth, and macroeconomic instability.

“Going into 2024, it is imperative for policy communication to be coherent and consistent to avoid the unintended consequences of market reactions to policy inactions or wrong policy therapy,” Rewane advised.

Managing Director, Arthur Stevens Asset Management, Mr. Olatunde Amolegbe, said inflation may continue to rise in the early part of 2024, but this will slow down later in the year.

He said: “I think it will still rise in the first half of the year but at a slower pace since most of the issues contributing to rising inflation seems to be already factored in. The coming on stream of Dangote Refinery should reduce forex demand pressures and rising crude oil price will hopefully improve liquidity.”

He noted that food prices could moderate if farm production improves as on the back of reduced insecurity while consumer resistance on the back of lower disposable income could also contribute to slow rate of inflation growth.

Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS), said: “So, to tackle inflation we need to deal with insecurity, supply chain issues, stabilize forex supply and prices and curb interest rate increases.”

Managing Director, Highcap Securities, Mr. David Adonri, said inflation will reduce in the months ahead.

He said: “Rising inflation is expected to moderate in 2024. The economy will readjust to the new price level precipitated by last year’s market reforms. Coming on stream of local refineries will reduce pressure on forex and hence reduce depreciation of the naira. Nigeria’s inflation is fueled by insecurity which depresses production and forex scarcity which escalates cost of production and imports. Addressing these issues will certainly subdue inflation.”

FDSH Group stated that it expected to see more collaboration between the Central Bank of Nigeria (CBN) and fiscal authorities on inflation, especially in dealing with the non-monetary triggers of inflation, otherwise the bank’s efforts to squeeze liquidity will only yield negative outcomes.

The Group said: “Challenges associated with agricultural productivity, logistics bottlenecks, infrastructure deficit and activities of non-state actors in imposing charges on businesses have implications for inflation in Nigeria, and efforts must be made to address them.

“The CBN must also be aware of its limits in taming inflation using monetary policy, especially given the peculiarities of the Nigerian economy – a large informal economy, a huge population of financially excluded individuals, etc.

“Therefore, constant dialogue with fiscal authorities is required, and we believe that the process of engaging with non-monetary authorities needs to be institutionalised to ensure proper coordination.”

Cordros Capital Group outlined disinflationary trend in the second half of 2024 as the macroeconomic environment improves.

Analysts at Cordros Capital said they expected gradual phasing out of the current impact of PMS subsidy and forex reforms on the non-oil sector, higher crude oil production relative to 2023 levels amid supportive oil prices and forex supply improvement in line with the authorities’ expectations of forex inflows from arrangement with international banks.

“Also, we expect foreign investors’ sentiments to improve next year, given the recent monetary authorities’ actions in sucking financial system liquidity and ensuring naira assets are attractive, even as the government is expecting forex inflows up to $10.00 billion from different sources,” Cordros Capital noted.

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Motorists trapped in Benin-Agbor-Asaba gridlock for days, Umahi inspects road

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Motorists and travellers using the Benin-Agbor-Asaba route have been stranded for days as severe traffic congestion continues to disrupt movement between the South-South, South-East and Lagos.

The gridlock, which has reportedly persisted for about five days, has left motorists spending long hours on the road, with some travellers unable to reach their destinations.

The situation has been attributed largely to the poor condition of sections of the road, which has been further worsened by heavy rainfall in the area.

Minister of Works, Engr David Umahi and some National Assembly members inspecting Benin-Agbor road on Tuesday

The rain has reportedly made some portions of the road difficult to navigate, resulting in vehicles becoming stuck and worsening the already severe congestion.

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The route is a major link for motorists travelling between Lagos and several states in the South-South and South-East, making the prolonged gridlock a major concern for travellers, transport operators and motorists.

Some motorists have reportedly been forced to spend extended periods on the road as efforts to navigate the affected sections have proved difficult.

The development has also raised concerns about the impact of the bad road on the movement of goods and passengers, particularly during the rainy season.

Travellers using the route have called for urgent intervention to restore movement and prevent further deterioration of the situation.

Meanwhile, the  Minister of Works, Senator David Umahi, on Tuesday led an urgent federal intervention on the congested Benin-Agbor-Asaba Expressway following President Bola Tinubu’s order to ease the hardship faced by stranded motorists.

Umah’s arrival in Edo State was disclosed by his Senior Special Assistant on Media, Francis Nwaze, who shared a video of the minister’s on-site inspection on his official X handle.

“Umahi arrives in Benin, Edo State, to address the congestion on the Benin-Agbor-Asaba Road,” Nwaze posted, adding in a subsequent update, “Umahi arrives Benin-Agbor-Asaba Road to resolve issues surrounding the road, which was handed over to concessionaire on PPP Basis since 2025.”

In an official press statement issued on Tuesday, Nwaze confirmed that Tinubu ordered immediate corrective measures on both the Benin-Agbor-Asaba axis and the deplorable Ifaki-Kabba-Ado Ekiti road spanning Ekiti and Kogi States.

To execute the directive, Umahi reportedly deployed the Minister of State for Works alongside ministry officials to commence remedial works on the Ekiti-Kogi corridor.

“While the intervention team moved into Ekiti and Kogi States, Umahi himself headed to Benin, Edo State, alongside members of the National Assembly Works Committees, to initiate a similar coordinated intervention on the Benin-Agbor-Asaba road.

“The Benin meeting is expected to bring together key stakeholders, including representatives of the Edo and Delta State Governments and the Niger Delta Development Commission (NDDC), with the aim of finding immediate solutions to the challenges confronting motorists on the strategic corridor,” the statement partly read.

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Police detain officers accused of N40,000 extortion in Abuja

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File: Policemen at a checkpoint
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The FCT Police Command has identified officers accused of allegedly extorting N40,000 from a resident along Wuye-Utako Road, near Salem Church, in the Federal Capital Territory.

The Command said the officers depicted in a video circulating on social media had been identified and were in custody.

The Police Public Relations Officer of the command, SP Josephine Adeh, disclosed this in a statement on Tuesday.

“The attention of the Commissioner of Police, FCT Police Command, CP Ahmed Muhammed Sanusi, PhD, FCAI, has been drawn to a video circulating on social media alleging that police officers of the FCT Police Command extorted an FCT resident of the sum of Forty Thousand Naira (₦40,000) along Wuye – Utako Road, by Salem Church, within the Federal Capital Territory.

“The officers depicted in the video have been identified and are in custody,” the statement read.

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The video, which began circulating widely on social media around August 24, features a man who claimed that on August 20, 2026, a police officer in Abuja collected ₦40,000 from him even after verifying that his documents were complete.

The man shared footage showing a receipt and a conversation after he returned to the checkpoint.

Adeh said the Command had also invited the complainant to the FCT Police Command Headquarters to give an official statement on the incident to aid investigation and disciplinary action.

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Entertainment

Dolly Parton, Queen of Country Music, dies at 80

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Dolly Parton dies at 80
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Country music legend and Hollywood star, Dolly Parton, has died at the age of 80, her family has announced.

Parton’s nephew, Brian Seaver, announced her death on Tuesday in a video shared on her social media account, describing the moment as one of “absolute pride and great sadness”. The family did not immediately disclose the cause of death.

The Tennessee-born singer, songwriter, actress and philanthropist enjoyed a career spanning more than six decades and became one of the most recognisable figures in American popular culture.

Late Dolly Parton

Known as the “Queen of Country”, Parton sold more than 100 million records worldwide and earned numerous honours, including multiple Grammy Awards. Her enduring hits included “Jolene”, “I Will Always Love You”, “9 to 5” and “Coat of Many Colors”.

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Dolly Parton was around six when she wrote her first song: “Little Tiny Tasseltop,” an ode to her corncob doll with corn-silk hair. Her mother stored it preciously in a shoebox.
“I loved that little doll,” Parton wrote decades later. “I expressed myself and my feelings through writing – I’m sure what I was thinking was, ‘Well, Tasseltop has to have a song about her.'”

Her death came after a period of health challenges. In May, Parton announced the cancellation of a Las Vegas performance, revealing that she had been undergoing treatment for kidney stones and was also dealing with problems affecting her immune and digestive systems.

Just days before her death, Parton had indicated that she was still determined to work despite acknowledging that she had slowed down following the death of her husband, Carl Dean, in March 2025.

“Even though I’m still healin’, I’m still workin’!” she said, insisting that she still had many things she wanted to accomplish.

Parton was born on January 19, 1946, in Locust Ridge, Tennessee, the fourth of 12 children in a poor family. She grew up in the Appalachian region, where her mother’s love for traditional music helped nurture her passion for singing and songwriting.

She began performing as a child and moved to Nashville shortly after graduating from high school in 1964. Her songwriting talent soon earned her recognition, before she established herself as a major recording artiste.

Parton’s breakthrough included “Jolene”, which became one of her signature songs. Her composition “I Will Always Love You” later became a global hit for Whitney Houston after the singer recorded it for the 1992 film The Bodyguard.

Beyond music, Parton built a successful acting career, starring in films including 9 to 5, Steel Magnolias and The Best Little Whorehouse in Texas. She also became a prominent businesswoman through Dollywood, the theme park she established in Tennessee in 1986.

Her influence extended well beyond entertainment. Parton founded the Dollywood Foundation and its Imagination Library initiative, which provides free books to children, making childhood literacy one of the major causes associated with her name.

She also donated $1 million to coronavirus research at Vanderbilt University in 2020, funding that contributed to research that later helped in the development of Moderna’s COVID-19 vaccine.

Parton’s personal life also attracted public interest. She married Carl Dean in 1966, and the couple remained together for nearly six decades until his death in 2025. They had no children.

Despite her global fame, Parton remained closely connected to her Tennessee roots and used her success to support communities, education, healthcare and other charitable causes.

Her death brings to an end the life of an entertainer whose influence crossed generations, musical genres and national boundaries, leaving behind a vast catalogue of songs and a philanthropic legacy that extended far beyond country music.

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