VenturesNow

Nigerian inflation falls again, drops to 32.15% in August

Published

4 weeks ago

September 16, 2024

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.

Related Topics:Featured inflation Nigeria

Click to comment

VenturesNow

Nigeria to supply gas to $3.5 billion petrochemical facility

Published

3 days ago

October 12, 2024

Ifeoluwa Dada

According to an official cited by Reuters, Nigeria has made significant progress in generating income from its enormous gas reserves as it entered into agreements with joint venture partners to supply gas to a proposed $3.5 billion Brass fertiliser and petrochemical facility.

According to the deal, the facility in Brass, in the coastal state of Bayelsa, Nigeria, will receive an estimated 270 million standard cubic feet of gas per day from joint venture partners Shell, TotalEnergies, and Eni.

The Gas Sale and Purchase Agreement, which is a component of the Brass Fertiliser and Petrochemical Project, is anticipated to produce at least $1.5 billion in exports of petrochemicals and other gas-based goods each year, according to Petroleum Ministry Permanent Secretary Nicholas Agbo Ella.

“This agreement represents a significant milestone in our ongoing efforts to monetize Nigeria’s vast gas reserves,” Ella said.

Nigeria, the continent’s leading energy producer, aims to develop its gas reserves, which total over 200 trillion cubic feet. The goal is to eliminate routine flaring by 2030 and increase gas supply to power plants, industry, and exports.

“In addition to boosting exports, the project will reduce fertilizer imports by 30%, saving Nigeria approximately $200 million in foreign exchange annually,” Ella said.

VenturesNow

Fortuna Mining says Burkina Faso won’t scrap permits

Published

6 days ago

October 9, 2024

Ifeoluwa Dada

The Burkina Faso government does not intend to revoke Fortuna Mining’s current mining permits within the nation, the Canadian company said on Monday.

Ibrahim Traoré, the leader of the Junta, stated on Saturday that Burkina Faso intended to remove some mining permissions from international businesses and work towards increasing local gold production. However, he did not specify which permits would be revoked.

The entire index fell on Monday as shares of gold miners with projects in the West African nation plummeted precipitously at the Toronto Stock Exchange.

Fortuna Mining’s stock was down 9% at 3:25 PM ET (19:25 GMT). The owner of the Bombero gold mine, Orezone Gold Corp., had a 9% decrease on the TSX.

In addition to addressing several subjects on Saturday to mark two years as president, gold producer Endeavour Mining said Traor hinted that some mining permits would be cancelled.

Endeavour asserted that it is unaware of any intentions to cancel any of the company’s mining permits and that the government continues to support the business.

Growing insecurity has made things more difficult in West African country despite its rich mineral resources. ACLED, a U.S.-based crisis-monitoring organisation, asserts that in 2023, over 8,000 individuals lost their lives in the nation, even though the junta promised to suppress groups linked to Al Qaeda and the Islamic State.

Burkina Faso has witnessed a boom in the mining sector since the early 2000s, primarily in the gold but also in the zinc and manganese industries. At the moment, the country is Africa’s fifth-largest producer of gold.