… Purchasing Power Of Nigerians Decreases, NBS
John Omachonu
The Nation’s Bureau of Statistics (NBS) says Nigeria’s official headline inflation increased again by 0.25% to 20.77%. This is the 8th consecutive monthly increase and a 17-year high.
The agency’s CPI and Inflation Report for the month under review stated that the rate is 4.14 percentage points more than the rate that was registered a year ago, which was 16.63 percentage points.
This implies that many Nigerians’ purchasing power has decreased by 4.14 per cent in the year leading up to September 2022.
However, President Muhammadu Buhari says the country has reached her goal of self-sufficiency in rice production, while yearnings and aspirations of Nigerians have been met with implementation of high-impact projects across the Country.
Buhari at the last ministerial retreat in the life of this administration in Abuja said, “Agricultural Sector has experienced significant growth. The shortfall in food production and food importation bills have both been reduced significantly. Along with the production of other staple crops, we have reached our goal of self-sufficiency in rice production. We are exerting a lot of effort to solve the problem of the rising cost of food that is related to inflation, being a global crisis.“
Metrobusinessnews.com investigations show that a bag of foreign rice sells between N35,000 and N37, 000, with analysts Predicting that it might go up to as much as over N50, 000 before the year ends.
In fact, going by the level of destruction of farm lands and crops ocassioned by flooding, some other analysts are predicting worst scenario of a bag selling for over N70, 000, particularly at end of year festive period.
For instance, due to ravaging and devastating flooding in Kogi, particularly, eastern part, a bucket of local rise that used to be sold at between N7, 000 and N8, 000, now sells for between N11, 000 and N12, 000 as at this period.
Already, a turber of yam is going for between N1, 500 to N3, 000, depending on the size, a development that has left some Nigerians despondent and hopeless.
Also, Vice President Yemi Osinbajo, while equally reeling out the achievements of the administration at the retreat warned on the need for coordination and cooperation among agencies of government for the achievement of the ultimate goal.
Osinbajo also spoke on the need to ensure synergy between fiscal and monetary policy in order to better manage the economy and exchange rate concerns.
He said: “The discussion that we must now have and going forward is how best to manage the situation by finding a mechanism for increasing supply and moderating demand which will be transparent and will boost confidence.
“I think that a more market-driven approach will be best, some price discovery within the context of a managed float is certainly required.”
Finally, a valuable lesson that we must draw from our efforts over the life of this administration is that coherence and coordination are essential for effective policy implementation. It is important for government policies to be coherent otherwise different parts of the government could end up adopting diametrically opposed policies. I think that one of the very important steps that Mr. President has taken is the establishment of the Delivery Unit in the Presidency.“
But, Bismark Rewane, Chief executive of the Financial Derivatives Company, in his response to rising inflation said, “Even though the uptick in headline inflation was sustained, the pace of increase in the general price level has slowed significantly. Also, month-on-month inflation, which is a more current measure of price movement declined sharply by 0.41% to 1.36% (annualized at 17.61%). This reinforces the view that inflation is almost at a tipping point and set to decline in Q4.“
NBS’s CPI and Inflation Report for September 2022 stated that the rate is 4.14 percentage points more than the rate that was registered a year ago, which was 16.63 percentage points.
This also implies that many Nigerians’ purchasing power has decreased by 4.14 per cent in the year leading up to September 2022
The percentage change in the average CPI for the twelve month period ending September 2022 over the average of the CPI for the previous twelve month period was 17.43 per cent, showing a 0.60 per cent increase compared to 16.83% recorded in September 2021.
Buhari told Nigerians and the world that the objective of his administration is to ensure completion and delivery of flagship projects and programmes, promotion of sustainable economic growth and development, as well as improvements in the living standard of Nigerians.
“ In recognition of the importance of critical infrastructure in economic development and the quest of this Administration to leave a lasting legacy, we have implemented high-impact projects across the length and breadth of the Country that meet the yearnings and aspirations of Nigerians, “ Buhari said.
On the economy, the president said, “we have witnessed seven consecutive quarters of growth, after negative growth rates recorded in the 2nd and 3rd Quarters of 2020. The GDP grew by 3.54% (year-on-year) in real terms in the 2nd Quarter of 2022. This growth rate represents a sustained positive economic performance, especially for the Non-Oil GDP which fell by 4.77% in Q2 2022 against Oil GDP that grew by -11.77%.
Most Sectors of the economy recorded positive growth which reflects the effective implementation of the economic sustainability measures introduced by this Administration.“
