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Inflation Rate Rises to 10.7% in Eurozone, Highest Since 1991

Inflation for the month of October in the Eurozone reached an all-time high of 10.7 percent from 9.9 percent in September 2022



European Union

Inflation for the month of October in the Eurozone reached an all-time high of 10.7 percent from 9.9 percent in September 2022, data from Europe’s Statistics Office has shown.

Influenced by the Russian invasion of Ukraine in February 2022, the price of food and energy has risen astronomically since then, pushing the cost of living in the region to a record high.

Consumer prices was 4.1 percent 12 months ago despite COVID-19. However, Russia-Ukraine crisis bolstered energy and other commodity prices in the region as the European Central Bank (ECB) continues to cut crude oil importation from Russia in protest of Ukraine’s invasion. 

A list of countries in the Eurozone includes Germany, France, Italy, Greece, Austria, Belgium, Luxemburg, and Cyprus among others.

According to the data released on Monday morning, more than half of the countries that make up the Eurozone have reported double-digit headline inflation rates, Investors king learnt

For example, Germany’s inflation currently stands at 11.6 percent while inflation in Italy rose to 12.8 percent in October. Inflation in the Netherlands is as high as 16.8 percent while Slovakia has an inflation rate of 14.5 percent. 

The narration is even more drastic in Latvia and Lithuania with 22.4 percent and 22.5 percent inflation rates respectively. 

Analysts have noted that the high cost of food and energy are the major drivers of the current inflation trend in the Eurozone. 

The cost of energy in the Eurozone rose to 41.9 percent in October while food inflation in the zone now stands at 13.1 percent from 11.8 percent in September 2022.

Data indicated that countries with significant reliance on Russian gas and fuel are the worst hit in the Eurozone. 

Meanwhile, the European Central bank (ECB) has hinted about its intention to further hike interest rates in its bid to control inflation. The continental bank noted in a statement that it has made reasonable progress in its effort to normalise inflation rate in the region. 

The bank however stated that it “expects to hike interest rates further, to ensure the timely return of inflation to its 2% medium-term inflation target.”

In September 2022, European Central Bank raised interest rates by 75 basis points to take the zone out of the danger of recession. 

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Inflation and Forex Mismanagement Drive Petrol Truck Prices from N7M to N25M



Petrol Importation -

The Chairman of the Independent Petroleum Marketers Association of Nigeria in the Satellite Depot branch, Akin Akinrinade, has raised an alarm over the rising cost of petrol trucks in Nigeria.

According to Akinrinade, the cost of a petrol truck has surged from N7 million in May to an astonishing N25 million at present, attributed to inflation induced by poorly managed foreign exchange rates.

Akinrinade pointed out that the forex mismanagement has significantly impacted the landing cost of premium motor spirit (PMS), commonly known as petrol, consequently leading to a surge in pump prices.

The unstable business environment, coupled with the astronomical rise in expenses, has created challenges for marketers in the downstream oil sector.

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), highlighted in October 2023 that foreign exchange challenges have hindered private companies from importing petroleum products.

As a result, the NNPCL has become the exclusive importer of petrol.

The decision to limit private entities from importing fuel comes after President Bola Tinubu’s initiatives aimed at deregulating the fuel market.

Initially, the plan was to allow private companies to import fuel starting June 2023, aligning with efforts to balance the market after removing petrol subsidies.

The ripple effects of the soaring petrol costs are already evident, with commercial transporters increasing fares, and private car owners seeking fuel-saving alternatives.

As Christmas approaches, the surge in demand for interstate travel is expected to further elevate costs, posing financial challenges for many Nigerians amidst stagnant income levels.

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Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption




The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.

The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.

The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.

The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.

This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.

Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.

The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.

Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.

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Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion



power project

The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.

Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.

During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.

He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.

Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.

The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.

Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.

The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.

The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.

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