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Why Prices Of Food Are On The Rise – NBS

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Why Prices Of Food Are On The Rise - NBS

The National Bureau of Statistics (NBS) has explained why the prices of food are on the rise.
Although the country recorded a marginal decline of 0.05 per cent in its inflation rate in April 2021, food inflation is still on the rise.

According to its Consumer Price Index report of last month, “the composite food index rose by 22.72 per cent in April 2021 compared to 22.95 per cent in March 2021”.

NBS blamed the sustained rise in food prices on soaring beverages prices, noting that “this rise in the food index was caused by increases in prices of coffee, tea and cocoa, bread and cereals, soft drinks, milk, cheese and eggs, vegetable, meat, oils and fats, fish and potatoes, yam and other tubers”.

The Lagos Chamber of Commerce and Industry (LCCI) Director-General, Dr Muda Yusuf, said the inflation rate was very high, despite the 0.5 per cent decline from the March 18.17 per cent figure.

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This translated to 0. 23 per cent decline, while core inflation soared to 12.74 per cent from 12.67 per cent during same period.

The LCCI chief said food inflation at over 22 per cent was still very high, in spite of the marginal moderation in food prices in April 2021.

According to him, in spite of the five-basis points moderation in consumer prices, inflation rate remained high, as it doubled the Central Bank of Nigeria’s upper target range of nine per cent.
Yusuf said the impact of monetary interventions on agricultural output had been undermined by several structural constraints, including insecurity.

He said the moderation was largely on account of base effect of current drivers of inflationary pressures, inclusive of productivity challenges, worsening insecurity, persistent foreign exchange illiquidity and high energy costs.

“LCCI notes the marginal moderation (year-on-year) in headline inflation as domestic prices accelerated by 18.12 per cent in April 2021 compared to 18.17 per cent reported in the previous month.

“This is the first time the economy would witness a moderation in consumer prices since August 2019 when the Federal Government shut the land borders.

“The chamber notes the slight moderation in food prices on year-on-year basis in April 2021 (22.72 per cent) compared to 22.95 per cent reported in March 2021.

“However, food inflation at over 22 per cent is still very high in spite of the marginal moderation in food prices in April 2021.

“The situation has continued to impact the activities of every economic agent, including households, businesses and investors with profound impact on the citizenry, particularly the low and middle-income households.

“The high level of inflation continues to dampen consumer purchasing power at a time households incomes are not increasing in proportion to cost.

“High inflation environment also impacts businesses in terms of rising production costs and depressed margins, making it increasingly difficult for corporates to deliver impressive returns to shareholders.

“This has implications for the sustainability of investment,” he said.

Yusuf was hopeful that the Monetary Policy Committee of CBN, set to meet next week, would concentrate on addressing the persisting inflationary pressure should the economy maintain its positive growth trajectory in the first quarter.

“Tightening policy stance by raising the monetary policy rate would naturally have implications for interest rates across key segments of the financial market.

“Overall, we believe effective synchronisation of fiscal and monetary policies is crucial in the fight against high inflation,” he said.

During the period under review, NBS said on a month-on-month basis, the food sub-index increased by 0.99 per cent in April 2021, down by 0. 91per cent points from 1.90 per cent recorded in March 2021.

The report added that the average annual rate of change over previous twelve-month average was 18.58 per cent, 0.65 per cent points from the average annual rate change recorded in March 2021 (17.93) per cent.

Continuing, the data said in April 2021, food inflation on year on year basis was highest in Kogi (30.52 per cent), Ebonyi (28.07 per cent) and Sokoto (29.90 per cent), while Abuja (0.05 per cent ) recorded the slowest rise in month on month food inflation with Rivers and Ogun recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

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In the period under review, the data showed that “all items less farm produce”, or core inflation, which excludes prices of volatile agricultural produce stood at 12.74 per cent, up by 0.07 per cent when compared with 12.67 per cent recorded in March 2021.

NBS explained that “on a month-on-month basis, the core sub-index increased by 0.99 per cent in April 2021. This was down by 0.07 per cent when compared with 1.06 per cent recorded in March 2021.

“The highest increases were recorded in prices of pharmaceutical products, vehicle spare parts, hairdressing salons and personal grooming establishments, garment, furniture and furnishing, medical services, shoes and other foot wears, motor cars, major household appliances whether electric or not, dental services, hospital services, non-durable household goods and fuel and lubricants for personal transport equipment.

“The average 12-months annual rate of change of the index was 11.25 per cent for the 12-month period ending April 2021; this is 0.24 per cent points higher than 11.01 per cent recorded in March 2021”.

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Access Holdings Gets New CEO To Replace Wigwe 

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Bolaji Agbede

By John Michael OJo

Following the death of its Co-founder and Group Chief Executive Officer, Dr Herbert Wigwe in a helicopter crash on Friday night in the United States, Access Holdings Plc on Monday appointed Ms. Bolaji Agbede as the Acting Group Chief Executive Officer of Access Holdings.

This was made known in a statement by the company’s Board of Directors dated February 12, 2024.

The statement which added that the appointment was subject to the approval of the Central Bank of Nigeria, reads: “Further to its announcement dated February 11, 2024, the Board of Directors of Access Holdings Plc (‘the Company’) has today announced the appointment of Ms Bolaji Agbede as the Acting Group Chief Executive Officer of the Company following the unfortunate demise of its former Group Chief Executive Officer, Dr Herbert Wigwe, on February 9, 2024.

“The appointment is subject to the approval of the Central Bank of Nigeria,” the statement read in part.

Agbede  who joined Access Bank in 2003 as an Assistant General has nearly three decades of professional experience cutting across banking and business consultancy services.

She has also served in different roles at the bank including, Head, Group Human Resources between 2010 and 2022 before she was appointed the company’s founding Executive Director, Business Support in 2022, a role she held until her new appointment

Agbede who commenced her professional career in Guaranty Trust Bank, holds a Bachelor’s Degree in Mathematics and Statistics from the University of Lagos and a Masters of Business Administration Degree from Cranfield University UK in 2002.

She is also a member of the Chartered Institute of Management UK and the Chartered Institute of Personnel Management of Nigeria.

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Ogun Constitutes Ambassadors To Intensify Efforts On Investment Drive

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L-R: Chairman, Manufacturers Association of Nigeria (Ogun State), Mr. George Onafowokan; Commissioner for Finance and Chief Economic Adviser, Mr. Dapo Okubadejo; Special Adviser, OgunInvest, Ms. Sola Arobieke; Commissioner for Industry, Trade and Investment, Mr. Adebola Sofela; Zonal Director, Nigeria Investment Promotion Council, Mr. Hassan Lawal, at the OgunInvest Ambassadors Network Inauguration and Orientation Course held at OgunInvest Office, Isheri, Ogun State.

Ogun State Governor Prince Dapo Abiodun has inaugurated a 12-man committee of Ogun Invest Ambassador Network to create a robust and seamless working relationship between government and investors, for businesses to thrive.

Governor Abiodun, during the inauguration and orientation course for the ambassadors, at Ogun Invest Office, Isheri, in Ifo Local Government Area of the state, said the initiative was a landmark in the history of the state, as it would make a huge difference to the growth of current and potential investors willing to do business in the state.

He explained that the ambassadors would be responsible for enlightening investors on how to harness the opportunities that abound and what they stand to gain by doing business with the state, adding that their role is pivotal in building bridges, fostering collaboration and attracting investors that would propel the state to new heights.

Governor Abiodun, represented by the Commissioner for Finance and Chief Economic Adviser, Mr. Dapo Okubadejo tasked the ambassadors to sharpen their communication skills, charging them to make accountability and transparency their watchword.

The state’s helmsman disclosed that the government would, on a regular basis, carry out an evaluation performance on them through private organisations transacting business with the state, promising that those who performed well would be compensated accordingly.

Speaking, Commissioner for Industry, Trade and Investment, Mr. Adebola Sofela, who admonished them to be diligent, in making Investment Promotion and Facilitation Agency a success, described them as a link between government and investors, saying a proper regulatory framework would be established to earn investors trust and respect.

Identifying the calibre of people in the network chain, Commissioner for Budget and Planning, Mr. Olaolu Olabimtan, noted that a new lease of life would soon commence in the state investment journey, expressing the hope that their selection would ensure a critical turning point in the investment atmosphere of the state and charged them to bring to bear their professionalism in the course of enhancing the industrial sector

Earlier, the Special Adviser on Ogun State Investment Promotion and Facilitation Agency (Ogun Invest), Ms. Sola Arobieke, said the initiative was part of the drive to attract investments, enhance ease of doing business and carry out the service of a one-stop shop, to ensure access to relevant information and streamline processes for investors in the state, pointing out that the Ambassadors Network is a team of dedicated individuals from different Ministries, Departments and Agencies (MDAs), saddled with investment-related functions, to ease the settling of investors and investments into the state.

On his part, the Managing Director, Coleman Technical Industries Ltd., Mr. George Onafowokan, who spoke on, “Promoting Investment Through Service Excellence”, said the selected ambassadors should see their nomination as an opportunity to serve and see themselves as representatives of the state front liners at giving investors excellent service and be ready to drive both existing and potential investors through excellent service delivery

The 12 ambassadors inaugurated include Consultant, Bureau of Lands and Survey, Mr. Fatai Adeboyejo; Deputy Surveyor-General, Bureau of Lands and Survey, Mrs. Halimat Yusuf; Director, Physical Planning, Ministry of Physical Planning and Urban Development, Mrs. Felicia Aleburu; Director, Planning, Research and Statistics, Physical Planning and Urban Development Mr. Jolaoluwa Olugbemisola; Director, Planning, Research and Statistics, Ministry of Agriculture, Mr. Suraj Fashola; Director, Land Acquisition, Bureau of Lands and Survey, Mr. Anifowose Olatunji and Director of Commercial Services, Ministry of Justice, Mr. Olumuyiwa Ogunsanwo.

Others are Director of Environmental Quality Control, Ministry of Environment, Mrs. Mary Adeosun; Director of Geological Services, Ministry of Industry, Trade and Investment, Mr. Lekan Eniolawun; Director, Estate and Facility Management, Ogun State Property Investment Corporation, Mr. Olusola Abijo; Director, Estate, Housing Corporation, Mr. Nafiu Olaleye and Deputy Director, Local Government Affairs, Ministry of Local Government and Chieftaincy Affairs, Mrs. Olapemiju Quadri.

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IGR To Contribute N240Bn To Ogun’s N703bn 2024 Budget – Commissioner

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L-R: Special Adviser to the Governor on Media, Mr. Kayode Akinmade, Chief Economic Adviser and Commissioner for Finance, Mr. Dapo Okubadejo, Commissioner for Budget and Planning and Mr. Olaolu Olabimtan, during the year 2024 budget breakdown and media parley in Abeokuta, on Monday.

Ogun State intends to generate N240 billion as Internally Generated Revenue in 2024.

The Chief Economic Adviser and Commissioner for Finance, Mr. Dapo Okubadejo disclosed this during a comprehensive budget breakdown and media parley held in Abeokuta on Monday.

The state’s overall budget for the year is N703 billion, which has already been signed into law by Governor Dapo Abiodun.

Okubadejo said that the budget reflects the determined vision of Governor Abiodun’s administration to foster best-in-class governance, create a conducive environment for public-private partnerships, and achieve sustainable economic development while enhancing individual prosperity among its citizen.

He emphasized that the administration’s focal points which includes the facilitation of ease of doing business, institutional reforms, development of fiscal policy thrust, and the promotion of public-private partnerships was geared at boosting the economy of the state.

He added that the budget is strategically structured around key development pillars, encompassing infrastructure, social welfare, education, human capital development, youth empowerment, job creation, agriculture, and food security.

“Ogun State is ambitiously positioning itself to become the hub for industrialization, logistics, and knowledge—an aspiration integral to achieving the status of the most economically viable state in Nigeria and Africa and with its considerable land size, proximity advantages, ongoing industrialization, and robust infrastructure, is actively creating an investor-friendly environment,” he said.

In his remarks, Commissioner for Budget and Planning, Mr. Olaolu Olabimtan emphasized the resilience and sustainability of the budget to ensure economic and financial independence for the state.

He noted that the budget would capitalize on internally generated revenue, which would give room for more capital expenditure for infrastructural development.

In his welcome address, the Special Adviser to the governor on Media, Mr. Kayode Akinmade, highlighted the media parley as a crucial platform for journalists to engage with key decision-makers with the objective of enhancing public understanding of the state’s achievements and future plans, aligning with Governor Abiodun’s ISEYA mantra.

He underscored the administration’s commitment to various economic indices, citing achievements in ease of doing business, revenue generation, national growth, and industrialization.

Akinmade noted that the media interaction was poised to catalyze dialogue, transparency, and public awareness, contributing to the overarching goal of sustained growth and development in Ogun State.

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