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Nigeria’s Food Inflation Hits 40.66% Year-on-Year in May 2024

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3 months ago

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Nigeria's Inflation Rate - Investors King

Nigeria’s food inflation rate surged to 40.66% on a year-on-year basis in May 2024, a significant increase from 24.82% recorded in May 2023.

The latest figures from the National Bureau of Statistics (NBS) highlight the rising cost of essential food items, exacerbating the economic challenges faced by many Nigerians.

The NBS report attributes the steep rise in food inflation to substantial price increases in several staple items.

Notably, the prices of Semovita, Oatflake, Yam flour, Garri, and Beans saw considerable hikes.

In addition, the cost of Irish Potatoes, Yams, Water Yam, Palm Oil, and Vegetable Oil also climbed significantly. Within the protein category, Stockfish, Mudfish, Crayfish, Beef, Chicken, Pork, and Bush Meat experienced notable price jumps.

The month-on-month food inflation rate in May 2024 was 2.28%, reflecting a slight decrease of 0.22 percentage points from the 2.50% recorded in April 2024.

This month-to-month decline was due to a slower rate of price increases for Palm Oil, Groundnut Oil, Yam, Irish Potatoes, Cassava Tuber, Wine, Bournvita, Milo, and Nescafe.

Despite the minor monthly decrease, the average annual food inflation rate for the twelve months ending May 2024 was 34.06%.

This marks a significant rise of 10.41 percentage points from the average annual rate of 23.65% recorded in May 2023.

The sharp rise in food inflation is raising concerns among economic analysts and policymakers, as it significantly impacts the cost of living for Nigerians.

The rising food prices are straining household budgets and contributing to an overall inflation rate that threatens economic stability.

In response to the inflationary pressures, the Nigerian government and relevant stakeholders are being urged to implement effective measures to stabilize food prices and address the underlying causes of inflation.

Efforts to boost agricultural productivity, improve supply chains, and tackle market inefficiencies are seen as critical to mitigating the inflationary trend.

The NBS report underscores the urgent need for comprehensive strategies to manage inflation and ensure food security for the population.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Economy

FG Moves to Reduce Transportation Fares by 40%, Says CNG is Great Alternative to Petrol Crisis 

Published

11 hours ago

on

September 28, 2024

By

ABC Transport Plc

If commercial transporters across Nigeria can buy into the Compressed Natural Gas, the Federal Government has said the hike in transportation fares will be drastically reduced.

According to the Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, the Federal Government hopes there will be over 40 per cent reduction in transportation fares through adopting CNG for commercial vehicles.

Speaking during a Memorandum of Understanding signing ceremony held in Abuja on Friday, where key stakeholders, including the National Union of Road Transport Workers from Itakpe, Adavi and Ajaokuta train station units gathered to formalise the agreement, Oluwagbemi emphasised the government’s commitment to affordable transportation amidst rising fuel costs.

Explaining how President Bola Tinubu led administration plans to tackle hike in transportation fare, Oluwagbemi said the Federal Government is working hard to bring transportation prices down, especially during these challenging times.

Describing CNG introduced by the president as a great alternative to the petrol problem, he said under the new plan, fares for six eight-passenger ger vehicles will be slashed from N12,000 to N7,,000 while fares for four-passenger ger vehicles will drop from N13,000 to N8,000 from Abuja to Ajaokuta train station.

According to him, the trip from Itakpe Station to Warri costs N5,000, showcasing the benefits of the Federal Government’s infrastructure investments over the past five years.

He said the progress represents a significant savings of over 40%, adding that passengers travelling from Abuja to Ajaokuta Station will greatly benefit from Tinubu’s intervention.

The Director of the CNG initiative noted that it is designed to encourage the conversion of existing commercial vehicles to CNG, which is sold at a discount of up to 60 per cent compared to petrol prices.

Oluwagbemi stated that the converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably.

A total of ten CNG fuel conversion centres have already been established across Abuja, Itakpe, and Ajaokuta, including six NNPC stations and two NIPCO stations.

More stations are in the pipeline, with collaborations with Bovas to introduce additional facilities in Abuja.

The timeline for implementation is ambitious, with inspections of vehicles expected to conclude next week and conversions commencing shortly thereafter.

At the event, the Secretary of the NURTW’s Ajaokuta unit, Adeyemo Teslim, expressed gratitude for the collaboration.

Teslim revealed that joining forces will yield multifaceted benefits, which Nigerian transporters are eager to support.

The transporter highlighted the need for expanded coverage to enhance accessibility across various regions, adding that the agreement also includes an enforcement mechanism to ensure compliance with the new fare structure.

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Economy

FG Awards N158bn Lekki Port Service Lanes Construction to Dangote 

Published

4 days ago

on

September 24, 2024

By

lekki

The Federal Government of Nigeria has awarded the construction of service lanes connecting the Lekki Deep Sea Port through Epe to the Shagamu-Benin Expressway to the Dangote Group, one of the leading private sector giants in the country.

The approval for the construction of the project was made at the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu.

Investors King learned that the project which seeks to reduce traffic congestion within Lagos, particularly with the concentration of industries in the Lekki Free Trade Zone, is worth N158 billion.

A statement issued by Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy disclosed that the project will be handled by Dangote Industries under the Federal Government’s Road Infrastructure Development Fund and Refurbishment Investment Tax Credit Scheme.

Aside from tackling traffic challenges, the planned service lanes are expected to facilitate hitch-free movement of goods, easing pressure on Lagos’ internal road networks and improving connectivity to other regions.

The Dangote Group benefits from reduced tax liabilities by carrying out public projects that contribute to national development.

Under the Federal Government’s Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, companies like Dangote Industries can receive tax credits in exchange for funding and completing public infrastructure projects, allowing them to “pay” for the project through future tax deductions.

As of August 2024, nine major road projects across the country were being funded by Dangote Group under this scheme, according to a review by the Ministry of Works.

With the recent FEC approval of the construction of service lanes from the Lekki Deep Sea Port through Epe to the Shagamu-Benin Expressway, the number of road projects being handled by Dangote Group has now risen to ten, making it the top private sector player in the scheme.

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Economy

Dangote Advocates for Full Subsidy Removal, Says Refinery Will Tackle Consumption Challenges

Published

5 days ago

on

September 24, 2024

By

Aliko Dangote - Investors King

The founder and Chief Executive of Dangote Group, Alhaji Aliko Dangote, has urged the President Bola Tinubu-led government to place its trust in the Dangote Refinery.

In a 26-minute interview with Bloomberg Television in New York on Monday, Dangote stated that the refinery would address many of Nigeria’s issues, particularly the high consumption rates that have turned the nation into an importer of most goods.

However, the businessman also called on the Federal Government to fully eliminate fuel subsidies.

According to him, now is the right time to remove fuel subsidies so that the country can determine its actual petrol consumption.

He said, “Subsidy is a very sensitive issue. Once you are subsidizing something, people will inflate the price, and the government will end up paying more than they should. It is the right time to get rid of subsidies.”

He added, “This refinery will resolve a lot of issues. It will provide clarity on Nigeria’s real consumption because, right now, no one can give a definite figure. Some say 60 million litres of gasoline per day, while others say less. But once we start producing, everything will be measurable.

“Everything will be accounted for, especially with the trucks and ships loading from us. We will track them to ensure the oil stays within Nigeria, which I believe will help the government save a significant amount of money. Now is the right time to remove the subsidy.”

Dangote further revealed that the responsibility for removing subsidies rests solely with the government.

He continued, “We have the option of either producing and exporting or selling locally. As a large private company, we do need to make a profit. We have built something worth $20bn, so, of course, we have to generate revenue.

“The removal of subsidies is entirely up to the government, not us. We cannot adjust the price, but I think the government will have to compromise on certain things. In the end, the subsidy will have to be removed.”

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