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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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BREAKING: NNPC Sacks  All Top Management Staff With Less Than 15 Months To Retire

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CAC Incorporates NNPC

As part of further reorganization for effective operations, the Nigerian National Petroleum Company Limited (NNPC)  has sacked  top management staff who have less than 15 months to retire from the national oil company.

The development is coming days after the oil company announced the removal and replacement of three of the its Executive Vice Presidents (EVPs).

Those impacted by the previous shakeup included Abdulkabir Ahmed, who was hitherto in charge of gas, power and new energies; Adokiye Tombomieye, who headed the upstream segment as well as Adeyemi Adetunji, who was in charge of the downstream.

They were replaced by Olalekan Ogunleye as EVP gas, power and new energies; Oritsemeyiwa Eyesan for the company’s upstream operations, while Adedapo Segun took charge of the downstream.

In a brief statement Tuesday morning, the NNPC stated that the new reshuffling was in line with its aspiration to rejuvenate its workforce.

“In our bid to pursue effective organisational renewal to support the delivery of our strategic business objectives, it has become imperative to rejuvenate our workforce.

“Consequently, in addition to the recent exit of three executive vice presidents, other members of management staff with less than 15 months to statutory retirement will be exiting the company effective 19th September 2023,” the statement said.

The NNPC noted that the move was in line with its commitment to scale up its capabilities through targeted talent management and equal opportunity for all Nigerians.

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BREAKING: Tinubu Nominates Cardoso As CBN Governor

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Dr Olayemi Cardoso

President Bola Tinubu has nominated Dr. Olayemi Michael Cardoso as the new Governor of the Central Bank of Nigeria (CBN).

A press statement by presidential spokesman, Ajuri Ngelale, disclosed on Friday evening that Cardoso will serve for a term of five (5) years at the first instance, pending his confirmation by the Nigerian Senate.

“This directive is in conformity with Section 8 (1) of the Central Bank of Nigeria Act, 2007, which vests in the President of the Federal Republic of Nigeria, the authority to appoint the Governor and Four (4) Deputy Governors for the Central Bank of Nigeria (CBN), subject to confirmation by the Senate of the Federal Republic of Nigeria.

“Furthermore, President Bola Tinubu has approved the nomination of four new Deputy Governors of the Central Bank of Nigeria (CBN), for a term of five (5) years at the first instance, pending their confirmation by the Nigerian Senate,” he stated.

The new Deputy Governors include Mrs. Emem Nnana Usoro, Mr. Muhammad Sani Abdullahi Dattijo, Mr. Philip Ikeazor, and Dr. Bala M. Bello.

“In line with President Bola Tinubu’s Renewed Hope agenda, the President expects the above listed nominees to successfully implement critical reforms at the Central Bank of Nigeria, which will enhance the confidence of Nigerians and international partners in the restructuring of the Nigerian economy toward sustainable growth and prosperity for all,” Ngelale stated.

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We Help Nigerians Transform Their Dreams Of Studying Abroad Into Realities – Braimah

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Sheriff Braimah

There is no gainsaying the fact that studying abroad opens doors to limitless opportunities. From getting a comprehensive and in-depth understanding of your desired choice of course – which positions you better than your peers – to the networking opportunities it provides, studying abroad can be the door to a better future.

On this premise, thousands of Nigerians dream of studying abroad and pursue that dream. Like every other dream for greatness, studying abroad is accompanied by several challenges including complex visa processes, financial constraints, and many more that often make some give up the dream or fail at it.

To help Nigerians, especially the youths, nurture their dreams of studying abroad, Redefined Consults Limited, a reputable educational consulting company with a team of dedicated and experienced travel professionals has helped many Nigerians process their applications seamlessly.

Having been in the global education competitive landscape for a while, Redefined Consults Limited understands the unique needs of its clients as well as the challenges that come with those needs, hence the need for a personalised approach to all applications they handle.

From choosing the right destination and university to advising on the courses that make application easy, up till the moment of obtaining a visa and settling into their new academic home, Redefined Consults makes it a core need to guide every client they have worked with through every step of the process.

The Founder and Team Lead, Redefined Consult Limited, Sheriff Braimah told our correspondent: “At Redefined Consults Limited, we recognise that education is not just about academics; it is also about personal growth and cultural enrichment. That is why we go beyond the conventional role of a consultancy firm. We are driven by a passion for excellence and a genuine desire to make a positive impact on the lives of individuals seeking quality education,”

He explained that the United Kingdom, Malta, Ireland, Canada, Australia, Malaysia, and China are some of the most sought-after travel destinations for Nigerians who desire to study abroad, and the educational consulting firm makes it a priority to research schools in these destinations, have a clear understanding of their requirements and provides the knowledge while helping them navigate the opportunities offered by each destination.

“With a core understanding of students’ recruitment, some of the services offered by our company include visa counseling and assistance to ensure a smooth and seamless process. Over the last three years, we have successfully helped more than 200 students achieve their dreams of studying abroad with the help of eight experts who are professionals and know their onions.

” If studying abroad is a dream you have had for a while but do not know how to pursue it or you have failed, Redefined Consult Limited is your hope to achieve that dream. With a proven track record of transforming study abroad dreams into reality, yours could be the next success story to tell,” Braimah added.

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