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Nigeria’s inflation rate hits 29.9% as currency, cost-of-living crises deepen

Published

9 months ago

February 15, 2024

Due to the country’s currency falling (Naira) to record lows and skyrocketing food prices, Nigeria’s inflation rate surged further in January to hit 29.90% annually.

This was revealed by the Bureau in its January 2024 Consumer Price Index (CPI) report, which also noted that food inflation rose to 35.41 percent during that time from 33.93 percent in December 2023.

Price pressures are mostly caused by the depreciating naira, which had its second devaluation in less than a year last month. Other contributing factors include the costs of electricity and logistics related to infrastructural issues.

In terms of yearly growth, the largest contributor to inflation in January was the food and non-alcoholic beverage category. From 33.93% in December to 35.41% in January, food inflation increased.

NBS said: “In January 2024, the headline inflation rate increased to 29.9% relative to the December 2023 headline inflation rate, which was 28.92%.

“Looking at the movement, the January 2024 headline inflation rate showed an increase of 0.98% points when compared to the December 2023 headline inflation rate.

“Furthermore, on a month-on-month basis, the headline inflation rate in January 2024 was 2.64%, which was 0.35 percentage points higher than the rate recorded in December 2023 (2.29%).

“This means that in January 2024, the rate of increase in the average price level is greater than the rate of increase in the average price level in December 2023.”

When the central bank meets later this month, some analysts think the statistics may influence it to announce a significant increase in interest rates. Nigeria, the most populous and economically significant nation in Africa, is going through its worst inflation since the middle of 1996, which is eroding savings and earnings and worsening the crisis caused by rising living expenses.

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VenturesNow

Food prices drive second straight monthly hike in Nigeria’s inflation

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to 33.88% in annual terms from 32.70% in September, mostly as a result of increasing food costs.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

As the effects of the naira devaluation started to lessen in July of this year, a slew of hikes in the price of petroleum and devastating floods that destroyed crops once again exacerbated pricing pressures, making the greatest cost-of-living crisis in decades worse in Africa’s most populous country.

According to the National Bureau of Statistics, price increases for basics such as rice, maize, bread, potatoes, and cooking oil prompted food inflation to surge from 37.77% in October to 39.16% year over year.

This year, more than 1.5 million hectares of agriculture have been damaged by torrential rain and floods in 29 of Nigeria’s 36 states, leaving millions hungry and displacing large numbers of people.

In an effort to curb inflation, the central bank has raised interest rates five times this year. On November 26, it is expected to make its final rate decision of the year.

VenturesNow

MTN financial report reveals drop in group service revenue

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced on Thursday an 18.5% decline in service revenue for the third quarter that concluded on September 30.

With 288 million users in 17 African regions, MTN said that its group service revenue dropped from 156.3 billion rand ($6.99 billion) in the same quarter of the previous year to 127.4 billion rand.

Despite stating that “the naira was less volatile on a sequential basis in Q3 than in preceding quarters,” the business reported a 48.7% decline in MTN Nigeria’s income due to the currency’s depreciation.

Due to a stronger Ugandan shilling than the previous year, Uganda’s largest contributor, MTN South Africa (MTN SA), expanded by a meagre 3.3%.

Due to “subscriber registration regulations in Nigeria and a decline in users in Sudan, where the conflict has displaced millions of people,” the business reported that its subscriber base increased by 1.6% to 288 million.

Given the higher demand in Nigeria despite the legal obstacles, MTN plans to increase its capital expenditures, which it expects would total between 28 and 33 billion rand for the entire year.