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

Published

7 months ago

September 15, 2023

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.

Related Topics:Featured Inflation rate Nigeria

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World Bank grants Malawi $57.6 million for food crisis

Published

2 hours ago

April 27, 2024

Ifeoluwa Dada

As a response to its food crisis, the World Bank said on Friday that it would give Malawi $57.6 million in “quick release” grants.

“This support comes in the context of the severe food crisis the country is suffering due to El Niño conditions in the wider southern Africa region,” the World Bank said in a statement.

“A series of intense disaster events over the last few years has left almost no time for the country to recover and has resulted in a severe erosion of food security at the national level.”

Malawi is one of the least developed countries in the world. It is ranked 170 out of 187 countries in the 2010 Human Development Index. Almost 16 million people live there, and 90% of them make less than $2 a day. That’s 53% of the total population.

The United Nations Children’s Fund (UNICEF) says that 46,000 children in Malawi are seriously malnourished. In 2023, UNICEF said that more than 500,000 Malawian children were at risk of not getting enough food.

Now, Malawi has a lot of programs in place to deal with things like poverty, and climate change, and to make the business and agriculture more diverse.

VenturesNow

Nigerian oil regulator implements regional fuel standards

Published

1 day ago

April 26, 2024

Ifeoluwa Dada

Nigeria’s oil authority has clarified that the recent changes to diesel fuel sulphur content standards are part of a regional effort to make things more uniform and are not meant to loosen rules for local refineries.

A report from S&P Global last week said that the West African fuel market had changed a lot after Nigeria raised the maximum diesel sulphur content from 200 parts per million (ppm) to around 650 ppm. This caused worries that the country might be lowering its standards to allow diesel made in Nigeria that is higher than the 200 ppm limit.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), on the other hand, said it was only following a 2020 decision by the Economic Community of West African States (ECOWAS) that all of the regions had to slowly switch to better fuels.

Fuels that have a lot of sulfur can hurt engines and make the air dirty. As of right now, the ECOWAS rule lets locally-made fuel have more sulfur until January 2025. After that, a standard of less than 5 parts per million will be used for all oil, whether it is refined in West Africa or brought in from another country.

Farouk Ahmed, the head of the NMDPRA, told Reuters that the new limits are in line with ECOWAS’s choice to require stricter fuel specifications. The new rules will go into effect in January 2021 for non-ECOWAS imports and January 2025 for ECOWAS refineries.

“We are merely implementing the ECOWAS decision adopted in 2020,” Ahmed said.

“So a local refinery with a 650 ppm sulphur in its product is permissible and safe under the ECOWAS rule until January next year where a uniform standard would apply to both the locally refined and imported products outside West Africa”, Ahmed said.

Ahmed said that importers were told that the amount of sulphur allowed was going down, from 300 parts per million in February to 200 parts per million this month. This was done long before the huge Dangote refinery started providing diesel.

Diesel with a sulphur level of between 1,500 ppm and 3,000 ppm could be brought in by importers before.

The switch to cleaner fuels is in line with efforts to protect the environment around the world and makes sure that all area refiners have the same chances.

Nigeria recently had its worst blackout in decades because of a problem with its energy supply. The high cost of alternative energy sources has been a huge problem for both businesses and individuals, with the price of diesel being the most affordable choice for businesses.