Amid high food prices, inflation drops to 15.99%
..Government’s figures are imaginary — Ehindero
…Govt incentives yielding dividends — Prof Segun Ajibola
…FG should improve foreign, local trades, efficient fiscal policy perspective — Former DG LCCI
…Food Prices remain high as FG moves to reduce prices — Minister
Matthew Denis, Ariemu Ogaga & Uthman Salami
The Nigerian Comsumer Price Index (CPI) has indicated a decreased by 15.99 per cent inflation amid increase in food prices.
The CPI which measures inflation increased by 15.99 per cent (year-on-year) in October 2021, the National Bureau of Statistics (NBS) has revealed.
Although Nigeria had a higher figure in October compared to last year, the inflation rate dropped for the seventh straight month.
In a report titled ‘Consumer Price Index October 2021’ and published on Monday, the agency disclosed that the development indicated an increase of 1.76 per cent points compared with the rate recorded in October 2020 (14.23 per cent).
It added that increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.
“On month-on-month basis, the Headline index increased by 0.98 per cent in October 2021, this is 0.17 per cent rate lower than the rate recorded in September 2021 (1.15) per cent,” the statement read.
“The percentage change in the average composite CPI for the twelve months period ending October 2021 over the average of the CPI for the previous twelve months period was 16.96 per cent, showing 0.13 percent point from 16.83 percent recorded in September 2021.
“The urban inflation rate increased by 16.52 per cent (year-on-year) in October 2021 from 14.81 percent recorded in October 2020, while the rural inflation rate increased by 15.48 per cent in October 2021 from 13.68 per cent in October 2020.
“On a month-on-month basis, the urban index rose by 1.02 per cent in October 2021, down by 0.19 percentage point the rate recorded in September 2021 (1.21) per cent, while the rural index also rose by 0.95 per cent in October 2021, down by 0.15 percentage point the rate that was recorded in September 2021 (1.10) per cent.”
Government’s figures are imaginary — Ehindero
Also speaking, the Executive Director Nigerian Workforce and Enlightenment Centre (NIWOSEC), Comrade David Kayode Ehindero said, “I question the sincerity of Data collection in Nigeria because most Government agencies do not have the tenacity to follow through the process, they often collect statistical data by imaginations.
“This is largely due to poor funding of the process or institution and corrupt activities as usual. I do not want to sound pessimistic. The fact remains that the reality of economy progression is not in books but table of the masses.”
According to him the reality is that government may have good intentions and might have come out with all manner of programs and projects to help the dwindling economy, but wanton corruption is not allowing it to get down to the desired level, so often government officers frame data to give a scenerio of good performance, hence the need for proper monitoring.
He stressed that Nigerians were not feeling the impact of the so-called economic growth, that the leadership should not be carried away.
“People are running away from Farms, Trans-trade movement within Nigeria is discouraging because of glaring security challenges. High interest rates and bank charges is discouraging savings and investment culture. Unemployment rate among Nigerians has not abated, so you wonder where the statistics are coming from?”
Govt incentives yielding dividends — Prof Segun Ajibola
Former President Chartered Institute of Bankers of Nigeria, Prof Segun Akinola said the downward trend in the rate of inflation is ordinarily a happy development. This according to him means that prices of goods and services, in terms of the basket, especially Consumer Price Index is signalling reduction in cost of living. This could be traced to a number of factors, chief among of which is the harvest season for farm produce.
“The various incentives introduced by government to help the manufacturing sector drive down production cost may also be yielding dividends, as Nigeria’s inflationary pressure is cost push. We only hope that the impact of this will reflect in the welfare standard of the citizenry as the transmission between the nominal and the real variable is usually subjected to lags,” he noted
FG should improve foreign, local trades, efficient fiscal policy perspective — Former DG LCCI
While reacting to the development in an interview with Nigerian NewDirect on Monday, the CEO Centre for Promotion of Private Enterprise(CPPE) and former Director General, Lagos Chamber of Commerce and Industry(LCCI), Dr Muda Yusuf said Federal government should improve foreign, local trade and efficient fiscal policy.
He said the headline inflation has continued to rise on a Month on Month basis.
He disclosed that the trend has implication for poverty, purchasing power and social stability.
He call on Federal Government to do more in the area of improved foreign, local trades and efficient fiscal policy perspective.
According to him, “The reality is that there was actually an increase in headline inflation on a month on month basis. The decline reported was a year on year inflation numbers.
“Even going by the NBS figures, the price increases had persisted. Even more worrying is the fact that food inflation had maintained an upward trend.
“This trend has implications for poverty, purchasing power and social stability.
“The situation calls for an urgent response, especially from a trade and fiscal policy perspective.”
Also reacting, Former Kwara state Commissioner of Budget and Economic Development, Alhaji Wasiu Odewale said, “Does that change the prices of food stuffs in the market. Does it change the prices of building materials or does it change the price of fuel nor the the import duties been paid by investors and exporters in the country?”
He stated that the NBS is only measuring the inflation rate from point of dollar or currency management and not the real situation in our country today for them not to been seen against the government bad economic policy we are witnessing today.
Nigeria heads for another recession — Prof Adeniyi, Tai Solarin University
“I am skeptical about the accuracy of this report by NBS. Anyway, it shows that there is serious reduction in value of our currency which translates to lower purchasing power, loss in value of savings etc. There will be contraction of consumer goods industries. It shows we may be heading for another recession. I conclude that this Government has failed Nigerians in the management of the economy.
Food Prices remain high as FG moves to reduce food prices – Minister
Data from the report indicated that the 12-month year-on-year average percentage change for the urban index was 17.53 per cent in October 2021.
This, according to the NBS, is higher than 17.41 per cent reported in September 2021, while the corresponding rural inflation rate in October 2021 is 16.39 per cent compared to the 16.26 per cent recorded in September 2021.
Meanwhile, the composite food index rose by 18.34 per cent in October 2021 compared to the 17.38 per cent recorded in October 2020.
The NBS attributed the rise in the food index to the increases in prices of food products, coffee, tea and cocoa, milk, cheese and eggs, bread and cereals, vegetables and potatoes, yam and other tubers.
On month-on-month basis, however, the food sub-index increased by 0.91 per cent in October 2021, down by 0.35 per cent points from 1.26 per cent recorded in September 2021.
“The average annual rate of change of the food sub-index for the twelve-month period ending October 2021 over the previous twelve-month average was 20.75 per cent, 0.04 per cent points from the average annual rate of change recorded in September 2021 (20.71) per cent,” the report said.
Earlier the Minister of Agriculture and Rural Development, Dr Mohammed Abubakar, has said the Federal Government is doing everything possible to bring up stimulus that will cause a reduction in food prices.
There has been a steady rise in the prices of foodstuff in Nigeria in the past months.
The Minister stated this Monday during a familiarization tour of the Agricultural Research Council of Nigeria (ARCN) in Abuja.
“We are doing everything possible to bring up some kind of stimulus that will cause a reduction in food prices, naturally nobody will just sit and watch.
“We are doing what we can to see that the agricultural sector is improved and the food that we expect for the teeming population of Nigeria is being produced, the same thing with the livestock.
“The Government is doing everything possible. This President, Muhammadu Buhari, is very passionate about agriculture, about seeing that people have food every single day to eat without struggles on their tables,” the Minister said.
The Minister said he would support the agricultural research council and the research institutes in the country to work together to develop better crops that can yield more and resist disease and drought.
Dr Mohammed also said the President specifically directed him to make sure that the research institutes in the country were being well taken care of, adding that it was his priority to see improved capacity to conduct research so that crops can be improved upon.
The Minister reiterated that the Government was set to reintroduce the Growth Enhancement Scheme (GES) after the scheme was scrapped a few years ago, adding that it has found a way that would make it work better. “My own concern is to make sure that the input gets directly to the farmers, not being withheld by middlemen.
“We will do all it takes to make sure that the system that will be rolled out gets the input to the grassroots farmers,” he said.
