By Matthew Denis & Joshua Elekwachi, Abuja, Abuja
Analysts have expressed mixed feelings over National Bureau of Statistic (NBS) Monday’s report on inflation rate, stressing that the current rate does not reflect prices of goods and services in the country.
NBS stated that Nigeria’s inflation rate stood at 18.12per cent in April 2021, indicating a drop of 0.05 per cent compared to 18.17per cent recorded in March.
The bureau also said food inflation stood at 22.72per cent in April 2021 from 22.95 per cent recorded in the previous month, while Core Inflation increased to 12.74 per cent in April 2021 from 12.67 per cent recorded in March 2021.
Responding, an economist and President, Association of Capital Markets Academics of Nigeria (ACMAN), Prof. Uche Uwaleke, said “It is difficult to interpret the marginal drop-in headline inflation to mean the beginning of a downward trend in inflation rate.
“It is because the risk to inflation outlook are still present which include insecurity having direct impacts on food inflation, the recent devaluation of the naira and the likely hike in pump price of fuel and electricity tariffs.”
He further noted that, “The core inflation component rose arising from increases in the prices of pharmaceutical products, vehicle parts etc which is not unconnected with forex market illiquidity and rising Exchange rate.”
A Businessman and Economist, Eze Igweoboffia maintained that, “Inflation rate can drop due to decreased demand for goods and services caused by dwindling income. So if demand falls, prices will fall too.”
A former Presidential Candidate of Abundant Nigeria Renewal Party (ABNRP) during the 2019 elections, Mr Tope Fausa, stated that food inflation has always been the driver perhaps there are inflation in other items, stressing that food inflation is always galloping in Nigeria because of the seasonitic and other locations of security challenges that affects farmers in some places.
Appreciating the drop he opined, “Let’s say it is a good thing there is a decrease but if it would have increased they will be breaking a 10-15 years record again but however it is not a new dawn yet. 18.12per cent is still a lot of inflation giving that our growth is at 0.110.”
Proffering solution on how to reduce inflation, he said “What can be done to reduce inflation comes from different angles and all the angles must be addressed.
“There is the demand side which the few units is having some money they can’t spend and the government is doing a few bailout here and there. Supply side inflation meaning that supplies of goods and services need to add money to overcome inflation.”
Also speaking with our correspondent, financial expert and Kwara state Former Commissioner of Budget and Economic Development, Mr. Wasiu Odewole stressed that the breakdown by NBS is just to cover the government inability to govern the country and manage our economy well.
He said, “Security challenges that is causing the problems is still on rise and the Naira, of course, had officially been devalued. Meaning that, the cost of living is on the rise and high more than January to March.
According to him, “We are deeply in a mess in our country today with rising debt profile, inflation, insecurity, tribal war and a devalued economy.”
He emphasized, “You should note that, the Government Two years or Six-year scorecard must be on the table for now and the only way to save their faces is to propound economic ‘abracadrabra’ to justify they have been in power when things are not working as expected.”
In addition, the Executive Director of D-Positive Global Consult, Dr. Nasir Abdulqudir said, “The NBS is one of the problems we have in this country always giving wrong data on inflation when the situations on ground doesn’t support their analysis.”
According to him, “The current government has failed Nigerians focusing on the National Gross Domestic Product (GDP)and foreign debts on the rise.
“So inflation cannot to have dropped when there is no balancing on forces of demand and supply in the market.
“Most Nigerians have cut down their standard of living because of the unbearable prices of commodities resulting to insecurity everywhere.”