Business
NBS: Inflation Rate Surges to 20.52%, Highest in 17 Years
The Consumer Price Index (CPI) which measures the rate of change in prices of goods and commodities rose to 20.52 per cent year-on-year in August, compared to 17.01 per cent in the corresponding period in 2021, the National Bureau of Statistics (NBS) disclosed on Thursday.
The CPI had risen to 19.64 per cent in July 2022.
The latest inflation figure was the highest inflation rate the country has recorded in 17 years.
The inflation figures came just as the Director, Corporate Communication Department, Central Bank of Nigeria (CBN), Mr. Osita Nwanisobi, Thursday expressed concern that the attitude of Nigerians towards foreign goods and services was one of the major challenges affecting the nation’s economy.
The statistical agency said the 3.52 per cent rise indicated that the headline inflation rate increased in August 2022 when compared to the same month in the preceding year.
According to the CPI report for August 2022, which was posted on the NBS website, food inflation stood at 23.12 per cent on a year-on-year basis in the period under review, which was 2.82 per cent higher than the 20.30 per cent recorded in August 2021.
However, core inflation, which excludes the prices of volatile agricultural produce stood at 17.20 per cent year on year in August, up by 3.79 per cent when compared to 13.41 per cent recorded in August 2021.
The NBS pointed out that the rise in food inflation was caused by increases in prices of bread and cereals, food product, potatoes, yam, and other tubers, fish, meat, oil, and fat.
Month-on-month, food inflation stood at 1.98 per cent in August, representing 0.07 per cent decline compared to the 2.04 per cent recorded in July.
On the other hand, the core index recorded the highest increases in prices of gas, liquid fuel, solid fuel, passenger transport by road, passenger transport by air, fuel and lubricants for personal transport equipment, cleaning, repair, and hire of clothing.
On a month-on-month basis, core inflation stood at 1.59 per cent in August, down by 0.17 per cent when compared to 1.75 per cent recorded in the preceding month.
Also, year-on-year, the urban inflation rate stood at 20.95 per cent, which was 3.36 per cent higher compared to 17.59 per cent recorded in August 2021.
On a month-on-month basis, urban inflation stood at 1.79 per cent in August, representing a 0.03 per cent decline compared to 1.82 per cent in July.
On the other hand, the rural index year on year stood at 20.12 per cent, representing 3.69 per cent increase over the 16.43 per cent recorded in the preceding year.
Also, month-on-month the rural inflation was 1.75 per cent, down by 0.06 per cent compared to 1.81 per cent in July.
However, at state level, the inflation rate on a year-on-year basis was highest in Ebonyi 25.33 per cent, Rivers 23.70 per cent, Bayelsa 23.01 per cent.
On the other hand, Jigawa 17.30 per cent, Borno 17.56 per cent and Zamfara 18.04 per cent recorded the slowest rise in headline inflation.
Month-on-month, however, the highest increases were recorded in Anambra 2.78 per cent, Ondo 2.53 per cent, Nasarawa 2.40 per cent, while Yobe 0.68 per cent, Borno 0.84 per cent and Zamfara 0.98 per cent recorded the slowest rise in inflation.
Also, year-on-year, food inflation was highest in Kwara 30.80 per cent, Ebonyi 28.06 per cent and Rivers 27.64 per cent, while Jigawa 17.77 per cent, Zamfara 18.79 per cent and Oyo 19.80 per cent recorded the slowest rise.
Month-on-month, however, food inflation was highest in Anambra 3.05 per cent, Ondo 2.92 per cent and Bauchi 2.78 per cent, while Yobe 0.46 per cent, Oyo 0.89 per cent and Delta 0.94 per cent recorded the slowest rise.
However, reacting to the inflation outcome, Chairman, Chartered Institute of Bankers of Nigeria (CIBN), Abuja Branch, Prof. Uche Uwaleke, said the increase in headline inflation above the psychological threshold of 20 per cent did not come as a surprise in view of the rising inflation trend in many economies partly caused by the Russian Ukrainian conflict.
It’s interesting to note that the NBS, in its latest CPI report, he said the NBS also provided a clue as to the major factors driving the inflationary pressure in Nigeria namely supply disruptions and the rising cost of production.
Uwaleke said “In the light of this revelation, what becomes clear is that the recent monetary policy tightening stance of the CBN alone may not address the challenge.
“The government needs to formulate and implement complementary fiscal policies aimed at boosting food supply as well as reducing firm’s cost of production.”
Also commenting on the development, the Chief Executive Officer, Eczellon Capital, Diekola Onaolapo cited domestic constraints.
He said: “The figures should surprise anyone; it is tragic that things are going this way. However, our inflation is often imported, and given the trajectory of the foreign exchange rate over the past few months has been. It is not a good development but not surprising.”
He added: “Considering inflation measures and changes in pricing from period to period, you’ll expect that after a while, it begins to taper off but the year-on-year comparison is going to continue but month-on-month would begin to taper off at some point.”
On his part, the Head, Financial Institutions Ratings at Agusto & Co, Mr. Ayokunle Olubunmi said: “I don’t think the figures are actually surprising given what we’re seeing globally and also with the country, I’m sure nobody is surprised by what we are seeing. Also, the exchange rates played a part because we largely import.”
“For the rest of the year, we think there would actually be an increase. The momentum will actually continue however, there will be a slowdown and the rate of increase is going to reduce. For us, we are projecting that the average inflation for the year would not exceed 19 per cent. The rate increase is going to reduce. It is going to increase at a decelerating rate.”
CBN: Nigerians’ Attitude to Foreign Goods, Impacting Economy Negatively
Meanwhile, Nwanisobi on Thursday said the attitude of Nigerians towards foreign goods and services was one of the major challenges affecting the nation’s economy.
The CBN Director, who noted that in the past 15 years, the country had survived several challenges, said Nigerians need to contribute to the development and stability of the nation’s economy by cutting down on their appetite of foreign goods.
He listed some of the activities in the past that hindered the growth of the nation’s Gross Domestic Product (GDP) to include economic recession, COVID-19 pandemic, oil theft, insecurity, among others.
He berated Nigerians’ appetite for foreign goods which he said leads to pressure in the forex market and naira depreciation.
The CBN director spoke yesterday, during an enlightenment fair organised by the CBN for business operators, banks, farmers, cooperative societies, NYSC members and workers of various establishments, held in Port Harcourt, Rivers State.
Speaking at the programme with the theme: “Promoting Financial Stability and Economic Development,”
Nwanisobi, who was represented by the Deputy Director, Corporate Communication Department, Central Bank of Nigeria (CBN), Mr. Samuel Okogbue, said the Enlightenment Fair would educate the participants on their various business activities that affects the economy.
“CBN is about the economy and the economy is about the people. We are here to interact with you about economy as to be conscious of what you are doing that impacts on the economy.
“The essence of our coming here is not only to tell you what CBN is doing. We also want to appreciate you, to think with you about our economy so that we will be conscious of what we are doing and how your businesses and other activities impact on our economy.
“In the last 15 years we have passed through many problems such as economic recession, COVID-19 which have impacted on the economy. We are battling with insecurity, oil theft and the urge for foreign goods which affects the nation’s Gross Domestic Product, GDP.
“We consume foreign goods, everything we consume are foreign based and all this affects the foreign exchange rates. Our attitude to foreign goods is affecting our economy. This enlightenment fair will educate you on consumer protection, currency operations, payment management system, development finance and eNaira,” he said.
In his remarks, the CBN Port Harcourt branch Controller, Maxwell Okafor, said the fair was aimed at disclosing the activities of CBN to the participants and what is required of them to secure their businesses and operate a free market economy.
Also, the CBN Assistant Director, Consumer Protection Department, Damola Atanda; Chika Ugwueze, CBN Assistant Director, Payment System, and Stanley Oruyeigha, Head Development Finance Department, enlightened participants on issues concerning consumer protection, payment system and development finance.
One of the participants and programme manager, Rivers State Agricultural Development Programme (ADP), Mr. Vitalis Chindah, commended the CBN for their interventions in area of agriculture product in the state and across the nation.
He urged the CBN to do more in encouraging the so many yearnings farmers who need finance to upgrade their business
Business
Nigeria Customs modernisation project to check extortion of traders
The Trade Modernisation Project (TMP) of the Nigeria Customs Service (NCS), will check the extortion of traders by facilitating the comprehensive tracking of their goods from the beginning of the trade process until delivery.
This is through its Unified Customs Management System(UCMS), a software that would be deployed to monitor all stages of the transactions by traders.
The News Agency of Nigeria(NAN) reports that the TMP is the automation of the business processes of the NCS, to simplify and enhance the experience of stakeholders in the trade value chain.
It is also aimed at making it easy to obtain export and import clearances, and in paying duties and obtaining release of goods.
NAN further reports that the customs modernisation project, which has three phases, is a 20-year concession agreement.
It was signed on May 27, 2023, between the Federal Government of Nigeria, represented by the NCS Board, and The Trade Modernisation Project Ltd.
Chief Superintendent of Customs, Usman Abba, Head, Business Analyst for the project, told NAN in an interview on Thursday in Abuja that by using the software traders would be able to know when and where there were hitches in their transactions for redress.
Abba said the system would eliminate fraudulent intent and expose those who take advantage of clients who cannot properly track their goods with the current system to extort them.
“This is the platform where the trader has access and is able to track all the stages of transactions and know where the challenge or exactly the issue is until the goods are delivered,“ he said.
He said that the service had received numerous reports of agents attempting to extract additional funds from their clients, by falsely claiming that their goods had not been cleared by customs when the process had already been completed.
According to him, the software, which will soon be inaugurated, is designed to have information on all transactions, including payments and goods clearance, to enable the trader to act as required.
He added that other agencies were also being integrated into the system to examine goods according to their constitutional mandates
On the current stage of the development of the software, Abba said that all internal systems had been completed, and final touches were being done on stakeholder integration.
NAN reports that the TMP is targeting to generate more than 250 billion Dollars in revenue over the 20-year concession.
The project is aimed at bringing Nigeria to par with the rest of the world in the deployment of technology to facilitate international trade.
It would also assist the Federal Government in achieving economic diversification by facilitating easier cross-border trading.
(NAN)
Business
SMEDAN introduces business pitch competition to enhance financial literacy
SMEDAN introduces business pitch competition to enhance financial literacy
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has introduced a business pitch competition known as “SMEDAN Speed Pitch”.
The Director-General of SMEDAN, Charles Odii, in a statement, said the initiative was designed to enhance financial literacy and provide small businesses with opportunities to access funds for growth.
Odii said the participants would receive training and support to develop and clearly articulate unique business innovations, viability, and potential to unlock opportunities.
According to him, this will include private investments in the country and across the globe.
He said: “The first edition of the pitch competition will take place on May 1, at the Eko Convention Center in Lagos as part of the Nano Micro Small and Medium Enterprises (NMSME) Engagement Series.
“It will be hosted by Ms Jennifer Adighije, the Senior Special Assistant to the President on Entrepreneurship and Innovation/Digital Economy.
“This initiative is part of SMEDAN’s ‘GROW Nigerian’ strategy, which focuses on boosting local production.
“It does this by providing Small and Medium Enterprises (SMEs) with financial and non-financial resources, including markets, knowledge, mentorship, and tools, to grow sustainably and spread prosperity.’’
Odii said to participate in the first edition, businesses must be female-owned, registered, and in operation for at least three years.
He said: “Applications will open on April 24 and close on April 27.
“Shortlisted applicants will undergo a test to determine the top five performers who will get the chance to present their pitch at the main event in Lagos.
“The winner will receive a prize of one million naira for workforce support, procurement of work tools, and business expansion.
“ Runners-up will receive 300,000 and 200,000 respectively, along with free Business Development support.”
On how to apply, the Director-General urged applicants to upload a three-minute video pitch to social media.
Odii said: “Introduce yourself in the video and showcase your product/service and the problem it solves, and make a case for why you should be enlisted.
“Follow and Tag SMEDAN’s official pages (@smedaninfo, use the hashtag #SMEDANSpeedPitch), and remember that the application deadline is April 27.
“For pitch criteria, you must possess a clear vision and concept, understanding of the target audience, unique selling proposition (USP), short-term and long-term goals and utilisation of the prize (money).
“The judging criteria will include, clarity, market potential, innovation and differentiation and presentation skills.”
(NAN)
Business
We generated N30.2 bn revenue in three months – Kano NCS Comptroller
We generated N30.2 bn revenue in three months – Kano NCS Comptroller
The Kano Area command of the Nigeria Customs Service (NCS), says it generated N30.2 billion in revenue between January and March 2024.
The Area Comptroller, Mr Dauda Chana, disclosed this in an interview with the News Agency of Nigeria (NAN) on Thursday in Kano.
NAN reports that the Kano area command covers Kano State and Jigawa.
Chana said there was a significant increase in the revenue generation profile of the command when compared to the same period in 2023 when N9.5 billion was realised within the same period.
The comptroller said already the area command has introduced more sensitive security measures to prevent all forms of smuggling in the area.
“We have already positioned our officers at strategic locations to deal decisively with all those involved in the illegal smuggling of materials.
“The area command has deployed officers at border posts in Maigatari, Gumel Local Government Area, Jigawa, to intensify efforts at mitigating activities of smugglers.
Read Also: Kano NCS generated N6.9bn in November – Comptroller
“The same applied to officers at the Jeke outpost in Babura Local Government Area of Jigawa.
“We are battle-ready to end smuggling through our various strategies to pave the way for arrest and prosecution of those involved in illegal businesses,” he said.
Chana appealed to traditional rulers and stakeholders, especially those in border areas, for their support and sensitisation of their residents on the negative effects of smuggling on the nation’s economy.
“We have also reached out to youths in the border communities, to assist our field officers with required intelligence that will assist in curbing all forms of smuggling activities.
“The command’s area of coverage is a no-go area for smugglers as officers have been stationed at identified illegal smuggling routes to ensure arrests and prosecution of offenders,’’ Chana said.
The area commander, however, solicited the support of stakeholders in encouraging residents to shun smuggling and embrace the export of locally produced goods.
(NAN)
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