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Nigeria’s headline inflation rate spikes by 1.72% to hit 25.80% in August 

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Nigeria’s headline inflation rate increased to 25.80% in August and 24.08% in July in the latest report by the official state data source, the National Bureau of Statistics (NBS).

The August 2023 headline inflation rate shows an increase of 1.72% points when compared to the July 2023 headline inflation rate.

The headline inflation rate was 5.27% points higher on an annual basis than the rate, which was 20.52% in August 2022. This demonstrates that when compared to the same month the year before, the headline inflation rate rose in August 2023. (i.e., August 2022).

The Food inflation rate spiked to 29.34%, up 2.35% points from the previous month’s reading of 26.98% and 6.22% points from the reading of 23.12% for the same time in 2022.

According to the NBS, price increases in oil and fat, bread and cereals, fish, fruit, meat, vegetables, and potatoes, as well as yam and other tubers, vegetables, milk, cheese, and eggs, are to blame for the rise in food inflation on an annual basis.

Food inflation is likely to continue on an upward trend as the year ends, based on higher demands for food supplies for end-of-year celebrations.

At the sub-national level, Kogi, Lagos, and Rivers states led the chart with 31.50%, 29.17%, and 29.06%, respectively, for the annual rate of inflation for all goods in August 2023, while Sokoto (20.91%), Borno (21.77%), and Nasarawa (22.25%) had the lowest annualised rate of inflation for headline items.

The three states with the biggest annual increases in food prices were Kogi (38.84%), Lagos (36.04%), and Kwara (35.33%), whereas the three states with the slowest annual increases in food prices were Sokoto (20.09%), Nasarawa (24.35%), and Jigawa (24.53%).

The sharp rise in inflation rates has been linked to the depreciation of the official exchange rate and the effects of the elimination of petrol subsidies on consumer costs.

While the two policies have been lauded by economists and multilateral bodies like the International Monetary Fund (IMF) and the World Bank, their immediate effects on Nigerians remain brutal, as evident in the inflation figures.

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VenturesNow

After decades of imports, Nigeria ends oil importation

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The Nigerian National Petroleum Company Limited (NNPC) has declared that it has finally stopped the long-standing practice of importing petroleum products after decades of doing so.

 

Nigeria’s national oil corporation stated that it now purchased from the 650,000 barrels per day Dangote Petroleum Refinery in Lagos, which is estimated to save the country up to $10 billion in hard currency each year.

 

This was revealed by Mr Mele Kyari, Group Chief Executive Officer of NNPC, in Lagos during his keynote address at the 42nd annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).

 

The statement coincided with the Independent Petroleum Marketers Association of Nigeria (IPMAN) announcing another positive development: the organisation had agreed to purchase goods directly from the $20 billion Dangote facility.

 

The oil dealers had fiercely protested the prior arrangement, which called for independent marketers to purchase from the NNPC rather than the Dangote Refinery.

 

However, Kyari also stated that all of the nation’s oil producers are required to send crude to the four NNPC refineries upon their return to the grid, citing the Domestic Crude Oil Obligation (DCOO) as outlined in the Petroleum Industry Act (PIA) 2021 as support.

 

He denied rumours that local refineries were being harmed by the national oil company’s refusal to supply them with crude oil.

 

As a proud co-owner of the Dangote Refinery, Kyari described NNPC as having recognised an opportunity in the $20 billion refinery as a clear market for at least 300,000 barrels per day of production, which would allow it to avoid being caught in the rapidly contracting crude oil market.

 

“Oil is found in very many unexpected locations across the world and people have choices. And therefore, we saw an opportunity to now supply to not just Dangote, but every refinery that operates in the country. So, it’s a well-informed business decision. Therefore, from day one, we knew that it was to our benefit to supply crude oil to domestic refineries.

 

“So, we don’t need to be persuaded. We don’t need anyone to talk to us. There is no need for any pressure from the streets for us to do this. We are already doing this”, Kyari stated.

 

Nigeria saw a decrease in petrol imports according to the National Bureau of Statistics, after President Bola Tinubu eliminated the gasoline subsidy in May 2023. Additionally, the report revealed that petroleum imports decreased by 13.77 percent year over year to 20.30 billion litres in 2023 from 23.54 billion litres in 2022.

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Nigeria signs deal for aircraft maintenance facility

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To build an aircraft maintenance, repair, and overhaul facility, the Nigerian government, acting through the Ministry of Aviation and Aerospace Development, has partnered with a private company in a public-private partnership.

Details of the agreement were given by a Ministry of Aviation representative, who spoke on condition of anonymity because they were not authorised to discuss the subject. The representative explained that the new facility would function as an Approved Maintenance Organisation under the Nigerian Civil Aviation Authority’s regulations.

The representative said, “AMO approved by the NCAA is meant to perform specific aircraft maintenance activities, which activities may include the inspection, overhaul, maintenance, repair, and/or alteration and release to service of aircraft or aeronautical products.”

Nigeria, which is the most populous country in Africa, is a major destination for more than 22 international airlines. Over 78 nations now have bilateral air services agreements with Nigeria.

According to the ministry source, this facility is the first of its kind in Nigeria and is intended to address the increasing maintenance requirements of domestic aircraft, which currently frequently necessitate costly and time-consuming journeys to foreign maintenance facilities.

The actual “date of commercial operations will be the date on which the NCAA grants the concessionaire approvals and licenses as required by the concessionaire in the agreement,” the ministry continued, adding that the exact start date for construction and ultimate operations is still unclear.

The source added that “all necessary activities are underway to make the contract effective.”

The official responded, “I don’t have those timelines,” when questioned about them. Before we discuss the actual building and management of the facilities, we are working quickly to complete a few tasks that will make the contract effective.

Festus Keyamo, the country’s minister of aviation and aerospace development, announced in August that he had finalised plans to start the bidding process for the construction of maintenance, repair, and overhaul facilities.

The minister stated that the action was a component of the government’s endeavour to improve the nation’s aviation infrastructure and lessen dependency on foreign MRO services. Due to the project’s high capital requirements, he also declared his intention to pursue a significant project using a Public-Private Partnership approach.

Nigeria’s economy and transportation sector both heavily rely on civil aviation. Nigeria boasts 23 operating domestic airlines, 20 airports, several regulated airstrips and heliports, 554 certified pilots, 913 qualified engineers, and 1700 cabin crew members.

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