Business

Inflation hits record high of 29.90% on naira weakness

Published

1 year ago

February 15, 2024

Ekwutos Blog

Inflation

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Nigeria’s annual inflation rate reached 29.90 percent in January, the country’s statistics agency reported today as the naira continues to weaken.

The Consumer Price Index report released by the NBS showed that prices rose by 0.98 percent to 29.90percent in January 2024, compared with 28.92 percent in December.

“On a year-on-year basis, the headline inflation rate was 8.08 percent higher compared to the rate recorded in January 2023, which was 21.82 percent,” the report said.

This exceeds the Financial Derivatives Company projections that the headline inflation is likely to spike further to 29.73 percent.

it will be the thirteenth consecutive monthly increase and a record high

“The foremost inflation culprit in Nigeria today is the weakened currency. In January alone, the naira lost 21 percent, touching a record low of N1,530/$. This is largely because of the lingering disequilibrium in the forex market as dollar demand continues to outpace supply.,” the report said.

The FDC report mentioned that the persistent currency depreciation has led to increased costs of imported goods such as wheat, subsequently pushing up the prices of wheat-related products like noodles, semovita, and bread by 20.4 percent, 35.8 percent and 14.3 percent

, respectively.

They also revealed that food inflation, which constitutes 50 percent of the inflation rate, rose to 35.41 percent in January from 33.93 percent in December.

The rise in the Food inflation on a Month-on-Month basis was caused by a rise in the rate of increase in the average prices of Potatoes, Yam & Other Tubers, Bread and Cereals, Fish, Meat, To- bacco, and Vegetable.

A breakdown of the NBS’ latest consumer price index report shows that food and non-alcoholic beverages contributed the most (15.49 percent) to the increase in the headline index, followed by housing water, electricity, gas, and other fuel (5.00 percent), clothing and footwear (2.29 percent), transport (1.95 percent), furnishings and household equipment and maintenance (1.50 percent) and education (1.18 percent).

Others are health (0.90 percent), miscellaneous goods and services (0.50 percent), restaurants and hotels (0.36 percent), alcoholic beverages, tobacco and kola (0.33 percent), recreation and culture (0.21), and communication (0.20 percent).

Furthermore, On a year-on-year basis, in January 2024, the Urban inflation rate was 31.95 percent, this was 9.40 percent points higher compared to the 22.55 percent recorded in January 2023.

While the Rural inflation rate in January 2024 was 28.10 percent on a year-on-year basis; this was 6.97 percent higher compared to the 21.13 percent recorded in January 2023. On a month-on-month basis, the Rural inflation rate in January 2024 was 2.57 percent , up by 0.40 percent compared to December 2023.

Core inflation, which excludes the prices of volatile agricultural produces and energy stood Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 23.59 percent in January 2024 on a year-on- year, up by 4.71 percent from 18.88 percent recorded in January 2023.

The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Passenger Transport by Air, Actual and Imputed Rentals for Housing, Pharmaceutical products, Accommodation services, etc.

Except for a brief pause in Dec 2022, Nigeria’s inflation reading has steadily increased since January 2023, a twelve -month consecutive high.

Business

Dangote refinery, NNPC: More fuel stations increase pump price in Nigeria

Published

21 hours ago

April 4, 2025

Ekwutos Blog

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The price of Premium Motor Spirit, popularly known as fuel, has recorded a significant increase in the past days, which may worsen the economic hardship Nigerians face.

MRS, a filling station partner of Dangote Refinery, kicked off the latest fuel price increase when it adjusted its petrol pump to between N925 and N950 per litre in Lagos and the Federal Capital Territory, Abuja.

Similarly, other fuel marketers such as Empire Energy, Recoil, Juda Oil, Total, Emedab, and others also increased their fuel pump to between N950 and N970 per litre.

On Wednesday, the Nigerian National Petroleum Company Limited retail outlets also jacked up their fuel price to N950 per litre from N880 in Abuja.

Summarily, Ekwutosblog observed motorists will have to pay N70 more to buy a litre of petrol in the coming days.

The development comes amid the suspension of petrol product sales in Naira by Dangote Refinery. This follows the initiation of the naira-for-crude sale deal between Dangote Refinery and the federal government through NNPCL.

On Wednesday, President Bola Ahmed Tinubu announced a reshuffling of NNPCL.

Meanwhile, local oil prices are increasing in Nigeria, despite the decline in global crude prices. As of the time of this report, United States West Texas Intermediate was at $62.15 per barrel, down from above $65, while Brent crude stood at $65.42 per barrel, down from $72 last week.

Business

Global Billionaires’ Net Worth Plummets by $65 Billion Amid Market Downturn

Published

1 day ago

April 4, 2025

Ekwutos Blog

Elon musk, Jeff Bezos, Larry Elison

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In a significant setback, the world’s wealthiest individuals collectively lost over $65 billion in net worth today, as key market sectors experienced a sharp downturn.

This decline affected prominent figures in technology, finance, and other industries, sending shockwaves through financial markets.

Ekwutosblog reports that the downturn occurs amidst cautious optimism that new US policies may not be as severe as initially feared.

However, the immediate impact has already been felt, leading to a decline in the net worth of billionaires such as Elon Musk, Warren Buffett, and Jeff Bezos, amongst others who have significant stakes in tech, finance, and other industries.

The global billionaire population has been growing, with over 2,850 individuals representing almost $15 trillion in wealth.

Despite this growth, the market downturn serves as a reminder of the volatility and risks associated with wealth concentration.

Business

Sterling Bank Makes History: Scraps Transfer Fees for Local Online Transactions, Earns Praise from Lawmakers, Including Mohammed Bello El-Rufai, and the Public

Published

2 days ago

April 3, 2025

Ekwutos Blog

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Sterling Bank has taken a groundbreaking step to ease the financial burden on Nigerians by eliminating transfer fees and other charges for local online transactions.

This move is a significant stride towards financial inclusion and customer-centric banking, particularly during a time when economic pressures are high.

Ekwutosblog gathered that this initiative has been commended by Mohammed Bello El-Rufai, Chairman of the House Committee on Banking Regulations, who praised Sterling Bank’s commitment to creating a more accessible and equitable banking system.

El-Rufai encouraged other financial institutions to follow Sterling Bank’s example, emphasizing that a competitive banking sector prioritizing Nigerians’ interests will strengthen the economy and rebuild public trust in financial services.

Sterling Bank’s decision to scrap transfer fees is expected to benefit individuals and small business owners who frequently make online transactions. The bank’s customers can now perform local transfers via the mobile app without incurring any charges. Obinna Ukachukwu, Growth Executive at Sterling Bank, stated that access to one’s own money shouldn’t come with a penalty, highlighting the bank’s values-driven approach to customer-centric banking.

This move has sparked widespread public approval, with many calling on other banks to adopt similar policies.

As policymakers, El-Rufai reiterated their commitment to fostering a regulatory environment that encourages pro-customer initiatives while ensuring sustainability within the banking sector.