Headlines
Turkey Inflation Spirals to 70%
By Derrick Bangura
Turkey’s annual inflation jumped to a two-decade high of 69.97% in April, according to data on Thursday, fuelled by the Russia-Ukraine conflict and rising energy and commodity prices after last year’s lira crash.
The surge in prices has badly strained households just over a year before presidential and parliamentary elections that could bring the curtain down on President Tayyip Erdogan’s long rule.
Erdogan first came to power as prime minister in 2003 before switching the country to a presidential system, and the unorthodox interest rate cuts made last year under pressure from him have been blamed for lighting a fire under inflation.
Month-on-month, consumer prices rose 7.25%, the Turkish Statistical Institute said, compared to a Reuters poll forecast of 6%. Annually, consumer price inflation was forecast to be 68%.
“It’s about food and energy price increases but also the spectacular failure of monetary policy in Turkey – and it’s about the abject and total failure of Erdogan’s unorthodox monetary policy,” said strategist Timothy Ash at Bluebay Asset Management.
Last year’s currency slide was triggered by a 500 basis point-easing cycle which began last September under pressure from Erdogan, prompting the sustained surge in consumer prices that was stoked by fallout from Russia’s invasion of Ukraine.
The surge in consumer prices was driven by a 105.9% leap in the transportation sector, which includes energy prices, and a 89.1% jump in food and non-alcoholic drinks prices, the data showed.
Month-on-month, food and non-alcoholic drink prices rose the most with 13.38% and house prices rose 7.43%.
The lira dipped 0.9% to 14.8525 against the dollar after the release of the data.
Presidential and parliamentary elections are due by June 2023 and opinion polls show Erdogan’s support declining.
“The really remarkable thing here is that opinion polls still suggest that the next election is still in the balance. Perhaps that says as much about the opposition as Erdogan,” Ash said.
LITTLE REPRIEVE
The government has said inflation will fall under its new economic programme, which prioritises low interest rates to boost production and exports with the goal of achieving a current account surplus.
However, economists see inflation remaining high for the rest of 2022 due to the war, with the median estimate for inflation at year-end standing at 52%. The current account deficit has also widened sharply at the start of the year.
Last week’s Reuters poll showed annual inflation was expected to be 52% by year-end. Inflation was last at current levels in 2002, having hit 73.1% in February of that year.
Inflation has continued to rise despite tax cuts on basic goods and government subsidies for some electricity bills to ease the burden on household budgets.
Last week the central bank forecast annual inflation will peak at around 70% by June before declining to near 43% by year-end and single digits by end-2024.
The central bank held its key policy rate steady at 14% in four meetings this year and said measures and policy steps will prioritise so-called liraization in the market.
The domestic producer price index climbed 7.67% month-on-month in April for an annual rise of 121.82%.
Agriculture
Borno establishes Ministry of Livestock, Fishery Development
The Borno Government has announced the creation of Ministry of Livestock and Fishery Development to align its
Development strategy with Federal Government initiatives, and boost the state’s economic potential.
Gov. Babagana Zulum made the announcement on Tuesday during the swearing in of two commissioners at the council chambers of the Government House.
Zulum underscored the importance of livestock and fisheries as vital sectors with untapped revenue potential.
He emphasised that the new ministry would focus on high-yield livestock breeds, milk production and fisheries, targeting both domestic consumption and export opportunities.
The governor said that “no state government can make substantial money in livestock alone, but we believe with the right investment and political will, the sector can generate significant revenue.”
He said that the growing demand for milk by yogurt companies and the proximity of Maiduguri to Asian and Arab markets, are great opportunities for dairy exportation.
The governor, therefore, assigned the Deputy Governor, Dr Umar Kadafur, to oversee the activities of the new ministry, citing his practical experience and passion for livestock development.
He said “livestock development is not just about academic qualifications, it is about practice and the deputy governor has demonstrated capability in that regard.”
According to him, the ministry will prioritise procuring high-yielding livestock varieties, enhancing milk production and creating sustainable rural projects to support
Local communities.
He said that projects in Mafa, Gajiram and in Southern Borno will soon be launched under the new ministry’s purview.
The governor urged civil servants and ministry personnel to take ownership of the new initiative, adding that the ministry’s success would contribute to the states
Long-term economic stability and self-reliance.
Headlines
British High Commissioner seeks military, civilian efforts in tackling insecurity
The British High Commissioner to Nigeria, Mr Richard Montgomery, has called for the combination of military and civilian efforts in tackling the complexity of security challenges in Nigeria and globally.
Montgomery made the call at a two-day Security and Justice Symposium organised by the Office of the National Security Adviser (ONSA) in Collaboration with the British High Commission, on Tuesday in Abuja.
He commended the efforts of the Nigerian military in promoting civil-military collaboration and adoption of kinetic and non-kinetic action in addressing the menace of terrorism and insurgency in the country.
“At the heart of all this is recognition of the importance of upholding the rule of law, human rights, humanitarian law and international humanitarian law.
“We need to consider the different legal principles and frameworks that apply to criminal violence or to violent conflicts and how we deal with them in protracted conflict zones.
“We had a legal frameworks roundtable with the Nigerian military officers earlier this year, and a really good debate about how we adapt to different situations.
“I am hoping today we will help progress that dialogue on which Nigerian legal frameworks are appropriate in which circumstances,’’ he said.
Montgomery highlighted the positive and open relationship between the UK and Nigeria, noting that both countries were learning from each other’s experiences in tackling security challenges.
He expressed his appreciation for the opportunity to continue this productive dialogue and hoped that the symposium would result in actionable insights and further strengthen the partnership.
Headlines
Zulum swears in 2 new commissioners
Gov. Babagana Zulum of Borno on Tuesday presided over the swearing-in of two new commissioners to replace those who died while in active service.
The State Chief Judge, Justice Kashim Zannah, administered the oath of office at the ceremony held at the Government House in Maiduguri.
The new commissioners are Muhammad Lawan-Dalorima for the Ministry of Finance and Isa Haladu for the Ministry of Reconstruction, Resettlement and Rehabilitation (RRR).
In his speech, Zulum expressed gratitude to the Borno House of Assembly for their prompt scrutiny and confirmation of the nominees.
He urged the commissioners to uphold the principles of integrity, transparency, and accountability in their new roles, while emphasising the administration’s strategy of periodically rotating commissioners to different ministries to promote fresh ideas and effective governance.
“You have been chosen for your exceptional qualities and expertise. I have no doubt you will make valuable contributions to our administration,” he said.
The governor also paid tribute to the late commissioners who previously held the portfolios, reflecting on their contributions to the development of the state.
Responding on behalf of the commissioners, Haladu thanked the governor for finding them worthy of the appointment, and promised him of diligent service delivery.
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