Business

MAN Tasks CBN on Lowering Nigeria’s Soaring Inflation

Published

2 years ago

August 28, 2023

OCHEFA

By Ocheneyi Alli

The Manufacturers Association of Nigeria (MAN) says that the Central Bank of Nigeria (CBN) had better “think out of the box,” as its increased monetary policy rate to reduce inflation has failed.

MAN, therefore , urges the apex bank to seek recommendations from the private sector, and civil society organizations on how best to bring the rising inflation in the economy under control.

In a statement, Segun Ajayi-Kadir, Director – General of MAN, notes that the CBN increased the monetary policy rate in July.

” The apex bank’s effort was aimed at arresting the soaring inflation and defending the Naira that has continued to drop in value both at the official and parallel markets.

The increase of MPR by 25 basis points in July brought the interest rate to 18.75 percent.

Within a span of one year, CBB has raised the Monetary Policy Rate (MPR) by 750 basis points from its April 2022 level of11.5 percent,” he said .

▪︎Ten African Countries Where Inflation Improves ( January- July, 2023).Source: Trading Economics.com

As reported by the National Bureau of Statistics (NBS), in July 2023, Nigeria experienced a surge in inflation, with the rate reaching a new 18-year high of 24.08 percent.

This marks an increase of 1.29 percent from the previous month’s rate of 22.79 percent.

It’s important to note that addressing inflation is a complex and long-term endeavor that requires a coordinated effort from various stakeholders, including the government, central bank, private sector, and civil society.

He believes that the combination of recommendations from the stakeholders, can help mitigate inflationary pressures and promote sustained economic growth,” he said.

Over the course of a year, the inflation rate had risen by 4.44 percentage starting from 19.64 percent in July 2022.

Specifically focusing on food, the 2023 inflation rate increased to 26.98 percent in July from 25.25 recorded in June.

In comparison to July 2022, the year-on-year food inflation rate was 4.97 percentage points higher.

The increased food prices were attributed to planting season and logistic costs as impact of fuel subsidy removal took its full course.

Notably, the most substantial price increases were observed in gas, air passenger transport, liquid fuel, vehicle spare parts, and fuels, lubricants for personal transport equipment, medical services, and road passenger transport.

In the same vein, the core inflation also moved up from 20.06 in June to 20.47 percent in July.

There was a 4.41 percent increase in the core inflation over the period of one year, from 16.06 percent in July of 2022.

The continued surge in sub-indices of inflation show that Nigeria’s inflation is more than transient but structural in nature.

Business

Meta’s Exit to Throw 20 million Nigerian MSMEs Out of Business

The Global System for Mobile Communications Association reported that Nigerian MSMEs rely heavily on Facebook and Instagram for sales, customer engagement, and brand visibility.

Published

24 minutes ago

May 9, 2025

OhiBaba

A Digital Marketing Consultant at EssenceMediacom, Olayinka Shobola, believes that a shutdown of Facebook and Instagram operations in Nigeria would deal a serious blow to Nigeria’s digital economy, especially millions of micro, small, and medium enterprises (MSMEs).

The Global System for Mobile Communications Association reported that Nigerian MSMEs rely heavily on Facebook and Instagram for sales, customer engagement, and brand visibility.

“Meta Platforms’ threat to halt operations in Nigeria could devastate 56 percent of the nation’s 39.6 players in the information technology space,” Shobola said, stressing that such an exit would erode tax revenues and force businesses to seek costly alternatives, as a $290 million fine dispute with regulators intensifies.

“Businesses that built their brands on Meta’s platforms would face immediate challenges.

The platforms have become essential tools for business survival and growth in Africa’s largest economy, where SMEs contribute nearly 50 per cent to GDP and represent more than 96 per cent of registered businesses.

“Most likely affected businesses will pivot to platforms like X or TikTok for short-term survival, but long-term, they’ll need to invest in standalone e-commerce or offline channels,” Shobola said.

“Jobs will take a hit; marketers, influencers, and agencies will lose contracts overnight.”

Statista forecasts a $148.2m social media ad market in 2025, with Facebook commanding up to $120m, driven by 38 million ad-reachable users.“My shop practically lives on these platforms, especially Instagram,” Lagos-based baker Fatima Tunde said. “If it’s gone, I’m out of business.”

Business

UAE Invests in $25bn African- Atlantic Gas Pipeline

The gas pipeline will connect Nigeria’s gas network with Morocco’s southern city of Dakhla and then go northward toward Europe.

Published

1 hour ago

May 9, 2025

OhiBaba

•Gas pipelines

Morocco’s Minister of Energy Transition and Sustainable Development, Leila Benali, said that the UAE is now one of the supporters of the Nigeria to Morocco gas pipeline project, which is estimated to cost $25 billion.

“The project now called the “African-Atlantic Gas Pipeline”, has won the support of IDB, OPEC Fund, EIB and the UAE,” Benali told Nigerian lawmakers, this week.

Benali also said that Morocco has finished all the feasibility and engineering studies needed for the pipeline.

Moroccan industry experts said that the project has already passed the feasibility study and Front End Engineering Design stages.

The gas pipeline will connect Nigeria’s gas network with Morocco’s southern city of Dakhla and then go northward toward Europe.

The line will pass through 15 African countries, boosting trade, development, and access to electricity in the region.

In Phase One, it will link Morocco to gas fields near Senegal and Mauritania, and connect Ghana to the Ivory Coast.

Phase Two will link Nigeria to Ghana, while Phase Three will connect the Ivory Coast to Senegal.

Business

Exclusive: LAGRIDE Drivers Reject Monthly Salary Model For Drive-to-Own

CIG Motors has replaced the drive-to-own scheme with a salaried model, where drivers earn a fixed monthly salary of ₦150,000.

Published

20 hours ago

May 8, 2025

OCHEFA

LagRide drivers are rejecting the new salary model introduced by Choice International Group (CIG), the distributor of GAC motors in Nigeria.

CIG Motors recently took over the full operational control of LagRide from the Lagos State Government, including the management of the vehicles and drivers.

LagRide, a ride-hailing service in Lagos, Nigeria, is owned and operated by a partnership between the Lagos State government and CIG Motors, since 2021, as an alternative to the rickety yellow and black-coloured taxis scattered across the city.

Ohibaba learned that, following the March 2025 full takeover, CIG had replaced the previous drive-to-own scheme with a salaried model for drivers.

Drive-to-Own Scheme:

The previous scheme allowed drivers to lease GAC vehicles through a down payment and daily installments.

Salaried Model:

CIG Motors has replaced the drive-to-own scheme with a salaried model, where drivers earn a fixed monthly salary of ₦150,000.

Some of the drivers who spoke with our Reporter are complaining that the monthly salary model isn’t favourable, and would likely switch to competitors, the likes of Bolt and Uber.

It was further gathered that the new management of LagRide has commenced retraining programmes for the drivers, batch by batch.

Meanwhile, the Lagos State government, led by Governor Babajide Sanwo-Olu, initiated LagRide as a solution to improve mobility and provide a multi-modal transportation system for Lagosians.

Purpose of LagRide:

LagRide aims to provide a more modern and reliable alternative to the traditional, often rickety, taxis that were previously prevalent in Lagos.