- Inflation Rate to Improve Further in April -FSDH
FSDH Merchant Bank has predicted a further improvement in the headline inflation in April.
Nigeria’s inflation rate has been on the decline since December, improving from 11.44 percent to 11.25 percent in March.
This, FSDH Merchant Bank, said will continue in April and improve slightly to 11.23 percent despite projecting a possible increase in the near-term.
The Head of Research, FSDH Merchant Bank, Ayodele Akinwunmi, disclosed this during a media presentation of the bank’s monthly economic and financial markets outlook for May titled: “Investment Opportunities in the Nigerian Financial Market.”
He said: “FSDH Research expects the April 2019 inflation rate to drop marginally to 11.23 percent from 11.25 percent in March. Inflation rate may remain in the low double digit in the remainder of 2019. Possible adjustments to the pump price of Premium Motor Spirit (PMS) and electricity tariff may shift the inflation curve by 2.5 percent.”
Meanwhile, the bank has said more efforts should be put into enlightening the public about savings and investments products in the financial market to improve savings in the country.
Akinwunmi said: “Despite the growth in the savings and investment products in Nigeria, the country still records low savings and investments.
“The ratio of Gross National Savings to the Gross Domestic Products (GDP) in Nigeria is one of the lowest among some selected countries including Nigeria, Kenya, South Africa, India, Malaysia, China, United Kingdom, and the USA.”
According to Akinwumi, Nigeria’s total investment to GDP is the lowest among the selected countries.
“FSDH Research notes, however, that these investment instruments need more supports that are currently available to enable existing and potential investors to fulfill their wealth creation and developmental goals.
“The first support needed is enlightenment. But government through the DMO, SEC, CBN can embark on publicity, both in the television and in the print media to create more awareness. They have done it before, they can do more.”