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Nigeria’s headline inflation rate hits 22.79%, up from 22.41% in May

Published

1 year ago

July 17, 2023

The latest data from the National Bureau of Statistics shows that the inflation rate in Nigeria has risen to 22.79% year-on-year from 22.41% in May.

As a result of the change, the headline inflation rate for June 2023 rose by 0.38% when compared to the headline inflation rate for May 2023. The headline inflation rate was 4.19% higher year over year than the 18.60% rate seen in June 2022.

On a year-over-year basis, the food inflation rate in June 2023 was 25.25%, which was 4.65% percentage points higher than the rate observed in June 2022 (20.60%).

Increases in the cost of fish, potatoes, yams, and other tubers, fruits, meat, vegetables, milk, cheese, and eggs were the main contributors to the rise in food inflation on an annual basis. In June 2023, the monthly rate of food inflation was 2.40%, which was 0.21% higher than the rate seen in May 2023 (2.19%).

Nigeria is in a dire economic state. Its monetary policy has also been in the spotlight over the majority of the last eight years when the nation operated a monetary framework that enabled multiple exchange rates, which some analysts claim led to arbitrage that harmed the economy.

President Bola Tinubu recently announced a policy to combine several exchange rate windows. He also promised to promote making it simple for foreign investors to repatriate their funds.

With the recent removal of subsidies on petroleum products and a spike in prices of transport and food, Tinubu has requested that the legislature amend the 2022 Supplemental Appropriations Act to add N500 billion for the purpose of funding emergency measures to counter the effects of the elimination of fuel subsidies.

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Finance ministry denies Angola is discussing an IMF deal

Published

6 hours ago

November 27, 2024

Ifeoluwa Dada

Angola’s foreign sovereign bonds fell after its finance minister announced on Tuesday that it was not in negotiations with the International Monetary Fund (IMF) on a new financial assistance package.

The oil exporter from southern Africa claimed to have requested “a note aimed at updating its technical view on the options for responding to risk scenarios” from the IMF.

“There are currently no negotiations with the Fund on a possible financial assistance program,” the finance ministry said in a statement.

A representative for the IMF stated that although it had not received any requests for a program, it continued to have “very close engagement with Angola authorities” about technical support and policy guidance.

In 2025, the government of Angola expects a budget deficit of 1.65% of GDP, which is a little greater than it is this year.

In October, Vera Daves de Sousa, the finance minister, told Reuters that Angola was considering internally whether to apply for an IMF funding package since the government was under pressure from the risk of falling oil prices.

Angola’s dollar bonds dropped as much as 1.3 cents, with the 2048 maturity bidding at 82.41 cents on the dollar, despite Brent crude prices being slightly higher at $73.44 per barrel at 1500 GMT.

VenturesNow

Nigeria: 25 states to get $500m W’Bank loan

Published

7 hours ago

November 27, 2024

Ifeoluwa Dada

In Nigeria, 25 state governments will benefit from the $500m World Bank loan to strengthen hydropower and irrigation water resource management.

The Federal Ministry of Water Resources and Sanitation and the Ministry of Power signed a Memorandum of Understanding with the World Bank on Tuesday to execute the Sustainable Power and Irrigation for Nigeria project.

In attendance were Prof. Joseph Utsev, Minister of Water Resources and Sanitation, and Adebayo Adelabu, Minister of Power. Bolaji Tunji, Special Adviser to the Minister of Power on Strategic Communication and Media Relations, announced the development in Abuja.

Niger, Gombe, Sokoto, Enugu, Bauchi, Cross River, Nasarawa, Ekiti, Kebbi, Plateau, Ebonyi, Zamfara, Abia, Kwara, Imo, Taraba, Kano, Delta, Osun, Jigawa, Edo, and Kogi are the states.

The effort seeks to improve dam safety, water resource management, hydropower, and irrigation systems nationwide.

“The Federal Ministry of Water Resources and Sanitation and the Ministry of Power have signed a Memorandum of Understanding to implement the Sustainable Power and Irrigation for Nigeria project.

“The 500 million dollar World Bank SPIN project aims to enhance dam safety and improve water resource management for hydropower and irrigation across 25 states.

In his speech, Power Minister Adebayo Adelabu stressed the partnership’s role in sustainable hydropower development and energy security.

Even though the country has tremendous water resources, just 2% of its 14-gigawatt hydropower potential has been used, leaving huge chances unmet.

He said, “Hydropower currently contributes about 20% of Nigeria’s grid supply, with a potential estimated at 14GW (14000 megawatts) of which only 15 per cent has been tapped.

“This collaboration underscores the Federal Government’s commitment to leveraging our natural resources for sustainable development.

“Through SPIN, we aim to optimize water resources to provide clean and reliable energy while supporting irrigation and agriculture for enhanced food security.”

Adelabu highlighted the MoU as a key step toward harnessing renewable energy, optimizing natural resources, and diversifying the energy mix in line with the Nigeria Energy Transition Plan.

He noted the initiative’s potential to transform the energy landscape and provide sustainable power for millions.

He further stated that under the current federal government administration, measures such as the Electricity Act 2023 are decentralizing the electricity market and enabling subnational governments’ participation.

Adelabu stressed the role of decentralized power systems in enhancing reliability and reducing risks to the national grid.

He also pointed out northern Nigeria’s solar potential, with 8 to 12 hours of daily sunshine, and reaffirmed the commitment to leveraging hydropower and fostering partnerships for a sustainable energy future.

Utsev described the SPIN project as pivotal to boosting food production, creating jobs, and strengthening Nigeria’s economy.

He commended the World Bank as a trusted partner in the country’s development, highlighting the Transforming Irrigation Management in Nigeria project, which concludes in January 2025, as a foundation for innovative solutions in water and agriculture.

As Chairman of the SPIN Preparatory Team, Utsev reaffirmed the ministries’ and partners’ full commitment to the project’s success, expressing confidence in its potential to address Nigeria’s irrigation needs and deliver significant benefits to citizens.

“We are confident that the SPIN project will build on this legacy by boosting food production and meeting the irrigation needs of our growing population,” he added.

“Our collective efforts have brought us to this significant moment, and I am confident that SPIN will deliver the tangible benefits Nigerians are eagerly anticipating,” he said.