Business
Hardship: Nigeria’s inflation drops signal economic recovery – CPPE, Economists
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,”.
Business
CBN, MOF sign pact to align monetary, fiscal policies
When these policies work in harmony, their combined impact is far greater.
The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance have signed a Memorandum of Understanding (MOU) on Monetary-Fiscal Policy Coordination as part of efforts to strengthen economic stability.
The Governor of the CBN, Mr Olayemi Cardoso, signed on behalf of the apex bank, while the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, signed on behalf of the ministry in Abuja over the weekend
“Fiscal and monetary policies remain two important and complementary instruments for the management of a modern economy. While fiscal policy influences economic activity through government expenditure, taxation and borrowing decisions, monetary policy promotes price stability and financial system soundness through the management of liquidity, interest rates and monetary conditions. When these policies work in harmony, their combined impact is far greater.
Business
Emir Sanusi mobilises Kano People “Buy Dangote Refinery’s Shares Now”
“I speak as the Emir of Kano; I would like my people to be owners of this company . I do not want us to be left behind in the capital markets. I do not want us to be left behind in financial inclusion. So this is the time and this is the opportunity,” said Sanusi.
The Emir of Kano, Muhammadu Sanusi II, has praised Kano-born businessman Aliko Dangote and encouraged residents to secure a stake in the Dangote Refinery and Petrochemical Plc before the public offering closes.
“I speak as the Emir of Kano; I would like my people to be owners of this company . I do not want us to be left behind in the capital markets. I do not want us to be left behind in financial inclusion. So this is the time and this is the opportunity,” said Sanusi.
The royal father made the call on Thursday during the Dangote Refinery IPO investor roadshow in Kano, urging residents to invest only disposable income they can afford to lock away for the long term.
His words, “Do not take your children’s school fees and put in shares. Do not sell the house that you live in and put in shares.
“Buy what you can afford, 10,000, 20,000, 30,000 – what you can afford to set aside for some time, set it aside.
And if you look at the fundamentals of the economy, over time you can be assured that this investment will grow, and you will not regret it.
He also advised prospective investors to choose a long-term approach rather than buying shares in anticipation of quick profits.
“And I’m not talking about someone who will buy 5,000 shares and want to sell tomorrow and believe he will get 10,000. No, I’m talking about you have some money, put it in, leave it there for some time, and just watch your money grow.
Forget about it for some time. You’ll be surprised in five years the 10,000 Naira you invest today, what it will be,” Sanusi said.
Business
Nigerians Speak As Petrol sells N1,500/litre
A visit to filling stations showed that motorists were purchasing the commodity for between N1,450 and N1,500 per litre, against the former price of N1,350.
NIGERIANS across the 36 states and the Federal Capital Territory – Abuja, are complaining bitterly as the pump prices of Premium Motor Spirit, popularly known as petrol, is selling for as much as N1,500 per litre nationwide .
According to the Prices across states tracked by the PUNCH, the cost of the commodity has continued to rise nationwide, selling for as high as N1,500 in many states.
In Yobe State, residents reported that petrol was selling for between N1,500 and N1,520 per litre at some filling stations in Damaturu, the state capital.
Similarly, a tricycle rider in the state capital, Musa Ibrahim, said he buys the commodity for about N1,500 per litre at some Nigerian National Petroleum Company filling stations.
Also speaking, a civil servant, Lawan Garba, said some filling stations were selling petrol at an even higher price.
“I am buying petrol at N1,520 per litre in some petrol stations,” Garba said.
In Kano State, petrol was selling for between N1,460 and N1,500 per litre at most filling stations in the metropolis. The increase has forced some vehicle owners to park their vehicles, while commercial tricycle operators, popularly known as “yan’ adaidaita sahu”, have also increased their fares by about 50 per cent, depending on the distance.
The operators who used to charge N200 for a short distance now collect N300, while they charge between N500 and N700 for longer distances.In Sokoto State, petrol prices rose to between N1,465 and N1,500 per litre in the metropolis.
Checks by our correspondent showed that the product had risen from the previous price of N1,365 per litre.
At some filling stations, including AA Rano, Shafa and Total, petrol was sold for N1,465 per litre, while major marketers sold it for between N1,470 and N1,500 per litre.
In Borno State, a litre of petrol was selling for N1,500 at filling stations in Maiduguri, the state capital.
A motorist, Ishaku Curutsi, confirmed to our correspondent that he bought petrol from Matrix filling station for N1,500 per litre on Wednesday. “I bought it this morning, and a litre at Matrix cost 1,500,” he said.
In Taraba State, the price of petrol had risen to N1,500 per litre, with motorists and commuters reporting prices of between N1,500 and N1,700 per litre at some filling stations.
The development is expected to further increase the cost of transportation and movement of goods within the state.In Zamfara State, a litre of petrol was selling for N1,500 in Gusau, the state capital, and its environs.
A visit to filling stations showed that motorists were purchasing the commodity for between N1,450 and N1,500 per litre, against the former price of N1,350.
At Danmarina filling station, motorists were seen purchasing the commodity amid complaints about the increase. One of the motorists, who gave his name as Musa Idris, said the current price was putting pressure on consumers.
• Culled from the PUNCH
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