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Hardship: Nigeria’s inflation drops signal economic recovery – CPPE, Economists

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Nigerian economists and the Centre for the Promotion of Private Enterprise have explained that the two consecutive drops in Nigeria’s inflation rate signal that the country’s economy is recovering from hardship

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, the CEO of SD & D Capital Management, Gbolade Idakolo, and a Don at Lead City University in Ibadan, Prof. Godwin Oyedokun, disclosed this on Monday.

They spoke in reaction to Nigeria’s February 2025 inflation drop.

On Monday, Nigeria’s inflation lowered for the second time to 23.18 percent in February 2025 from 24.48 percent recorded in the previous month, according to the National Bureau of Statistics’ latest Consumer Price Index.

The data showed that food inflation also declined in February to 23.51 percent from 26.08 percent in January.

Nigeria’s inflation fell massively to 24.48 percent in January after CPI rebasing.

However, while the data from NBS showed the inflation rate is lowering, the cost of living in Nigeria has remained elevated.

Nigeria’s deceleration in inflation shows macro stability — CPPE

The deceleration in the inflation rate can be attributed to moderation in macro stability, according to CPPE.

Yusuf stressed that the drop in exchange rate volatility and drop in premium motor spirit prices are contributing factors to the decline in Nigeria’s inflation rate.

He, however, emphasised that Nigeria’s inflation remains high, noting that the government needs to come up with policies to bring down the prices of basic items, such as staple foods and pharmaceuticals.

“The further deceleration in inflation in February can be attributed to two factors. First is the base effect.

When you relate the 2025 figure to 2024, it is expected to see further narrowing because the inflation rate is mainly year on year.

This trend is likely to continue for the larger part of 2025. The second part is due to moderation in macro stability. We are beginning to drop in the volatility in the exchange rate in the last few months.

“This is a key factor because the exchange rate is a major driver of inflation. Also, slight reduction in energy prices such as PMS.“

However, the inflation rate of 23.18 percent is still high. This means that there is a lot of work to be done to ease inflationary pressures on citizens.

The government should take some urgent steps to bring down the price of basic products. Foods, pharmaceutical products, cooking gas, and staple foods (bread, noodles, rice)- should be top on the agenda of government.

“Another good news is that there is an increase in food production on account of improved security,”.

Pressures driving higher prices are easing — Prof Oyedokun

Oyedotun said the latest inflation drop suggests that the factor driving higher prices may be stabilising, which could provide relief to consumers and businesses.

According to him, the second consecutive drop in headline and food inflation, with figures at 23.18% and 23.51%, respectively, could be viewed as a positive indicator of an easing inflationary trend.

He said this suggests that the pressure driving prices higher may be stabilising, which could provide some relief to consumers and businesses.

He noted further that improved supply chain conditions, seasonal factors that affect food production and prices, government interventions, and monetary policies are factors contributing to the inflation rate decline.

Regarding the February inflation drop outside the Consumer Price Index (CPI) rebasing, several factors could contribute.

“These might include improved supply chain conditions, seasonal factors that affect food production and prices, or government interventions that stabilise markets.“

Additionally, any recent policy measures aimed at curbing inflation, such as adjustments in interest rates or subsidies for essential goods, could also play a role,” he said.

On why the inflation drop has not been reflected in market prices, he said, “As for the inflation figures not aligning with the reality of elevated prices for goods, this discrepancy could stem from various reasons.“

The CPI may not fully capture specific categories of goods that are experiencing sharp price increases.

Additionally, inflation measurements are often averages and may not reflect localised price changes or the unique purchasing patterns of different consumers.

“Factors such as producer price increases, distribution costs, and market dynamics can also lead to a situation where prices remain high despite a reported decline in inflation rates”.

Why inflation rate decline doesn’t reflect on the price drop — Idakolo

Idakolo said Nigeria’s inflation figures do not reflect the general price of goods because of the strength of the naira- exchange rates and interest have remained high.

“The inflation figures are not generally reflecting on the price of goods because certain fundamentals of the economy, like the strength of the Naira, exchange rate, and interest rates, remain high, which have made it difficult for the impact of lower inflation to be felt by the people.

However, if the government continues to drive down prices due to targeted policies, it would only be a matter of time before people start feeling the impact of reduced inflation on the economy,”.

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Dangote Group Begins Reconstruction of Itori Cement Plant Project

“Our factory at Itori was dismantled twice. When we made a second attempt, the demolitions extended beyond the factory to the surrounding fence, prompting us to withdraw. However, we are now back, and I assure you that the developments are impressive.”

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The President of the Dangote Group, Alhaji Aliko Dangote, has announced the recommencement of the reconstruction of the cement plant project located in Itori, Ewekoro Local Government Area in Ogun State.

Construction of the Itori plant project originally began on December 23, 2023, with an anticipated completion date in November 2026. Unfortunately, the project was pulled down on two separate occasions during the administration of the former Governor of Ogun State, Senator Ibikunle Amosun.

The ongoing plant project, which includes two new production lines with a combined capacity of 6.0 million metric tons per annum, complements the existing cement plant that has been operational for over a decade in Ibese, Yewa North Local Government Area.

On Monday, Mr. Dangote conducted a courtesy visit to Governor Dapo Abiodun’s office at Oke-Mosan, Abeokuta, as part of an inspection of the multimillion-dollar plant project.

During this visit, he reflected on the challenges faced in the past, noting that the site was dismantled twice by the previous administration. However, he expressed optimism about returning to the site, attributing this positive development to the current administration’s supportive and investor-friendly policies.

He stated, “Our factory at Itori was dismantled twice. When we made a second attempt, the demolitions extended beyond the factory to the surrounding fence, prompting us to withdraw. However, we are now back, and I assure you that the developments are impressive.”

Mr. Dangote further assured stakeholders that, upon completion, the Itori cement plant will significantly enhance the overall capacity of the company’s cement plants in the state, bringing the total to approximately 18 million metric tons per annum.

This positioning will designate Ogun State as the leading cement-producing region in Africa.

“With the contributions of other cement manufacturers in the state, Ogun is markedly ahead of other regions across Africa in terms of cement production,” he emphasized.

According to Mr. Dangote, Dangote Cement remains the leading cement producer in Africa, with a total capacity of 52.0 million metric tons per annum across the continent.

He highlighted that 70 percent of this production occurs within Nigeria, with the Obajana plant in Kogi State representing the largest production facility in Africa, accounting for 16.25 million metric tons per annum.

He concluded by stating that the investments in cement manufacturing have enabled Nigeria to achieve self-sufficiency in cement production, similar to the progress made in the fertilizer sector, with surplus production contributing to export markets and generating essential foreign exchange for the nation.

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Governor Mbah moves Coal Camp spare parts traders to new site

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Governor Peter Mbah of Enugu State has signed an Executive Order mandating the relocation of the Coal Camp spare parts and allied trades markets to the new International Spare Parts and Allied Trades Park.

The newly designated site spans Udi and Ezeagu local government areas along the Enugu-Onitsha Road.

This new market is designed with world-class infrastructure, including safety codes, a fire service station, a truck park, a clinic, and residential areas for traders.

The order, titled “Designation and Establishment of the Enugu International Motor Spare Parts and Allied Traders Park,” was signed in the presence of the state’s Attorney General, Dr. Kingsley Udeh, and leaders of the spare parts dealers’ association at the Government House on Friday.

Governor Mbah assured traders that the new market was purpose-built with all necessary amenities, addressing the shortcomings of the Coal Camp Market.

This new market is designed with world-class infrastructure, including safety codes, a fire service station, a truck park, a clinic, and residential areas for traders,” he said.

The President of the Enugu Motor Spare Parts Dealers Association, Chief Michael Nomeh, expressed gratitude, noting that previous administrations had failed to fulfill similar relocation promises.

“Since 1999 we have heard numerous promises to relocate us, but none were kept. Governor Mbah has proven to be a leader of action, fulfilling this promise in less than two years,” Nomeh said.

Source: DailyTrust 

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Fed Govt approves Abia modular refinery

Abia State Governor Dr Alex Otti said the modular refinery would be built by H.I.S. Refinery and Petrochemical Company Limited.

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The Federal Government has given approval for the construction of a modular refinery in Abia State.

Abia State Governor Dr Alex Otti said the modular refinery would be built by H.I.S. Refinery and Petrochemical Company Limited.

Otti spoke during the flag-off of the reconstruction of 11.1 kilometers Obehie-Umudibia-Owaza road.

He said the refinery would be cited at the Abia Industrial and Innovative Park (AIIP) in Owaza, Ukwa West local government area of the state. Flagging-off the road project at St. Ann Secondary School, Obehie Asa,

Otti said that the road at completion, would boost marketability and viability of Abia Industrial and Innovative Park (AIIP). He said that significant changes would occur in the area after the completion of the road.

This project is therefore not just about creating access to the towns and villages along these corridor, it is more about reviving dormant economic assets, opening new horizons and reigniting the dreams that once starred the souls of our fathers.

“I’ll like to inform you that just a few days ago, we got the good news that the Federal Government has approved a modular refinery which would be cited inside the AIIP. ▪︎The Nation

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