Connect with us

Business News

Nigeria 13.22 % Inflation Rate Will Subsist, Expert Predicts

Published

on

Share

By Tony Obiechina, Abuja

Economic expert and Capital Market Professor, Uche Uwaleke has said that the uptick in Nigeria’s inflation rate was expected and would remain so until the harvest season.

Nigeria’s inflation recorded its highest increase this year, rising to 13.

22 per cent in August, the National Bureau of Statistics has announced.

According to NBS data released on Tuesday, the 13.22 per cent inflation rate is the highest since April 2018.

The NBS, in its latest consumer price index report, said, “The consumer price index, which measures inflation increased by 13.

22 percent (year-on-year) in August 2020. This is 0.40 percent points higher than the rate recorded in July 2020 (12.82 percent).

“On  month-on-month basis, the headline index increased by 1.34 percent in August 2020. This is 0.09 per cent higher than the rate recorded in July 2020 (1.25 per cent).”

The composite food index rose by 16 per cent in August, compared to 15.48 per cent in July, according to the statistics office.

“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, oils and fats and vegetables,” it added.

Speaking on the development, Prof of capital market at the Nasarawa State University, Keffi, Uche Uwaleke said that the uptick in inflation rate in August was expected and will likely continue till the harvest season sets in.

According to him, this is particularly so given the fact that the inflationary pressure is coming more from the food component which increased by as much as 16%.

He said that it was not difficult to see where the pressure is coming from.

”The economy is still reeling from the negative impact of COVID’19 on the food supply chain. This situation is compounded by the border closure, increase in VAT, electricity tariffs, stamp duties and upward exchange rates adjustment by the CBN  in order to ease the pressure on the forex market, ” he said.

The capital market expert noted that the recent increase in pump price of fuel presents further downside risks to inflation.

”There is also the insecurity challenge affecting the food belts of the country which partly explains the high rate of food inflation, at over 20%, in a state like Kogi.

”As I mentioned earlier, I expect the inflation rate to moderate towards the end of Q4 2020 in the wake of the harvest season as well as a likely increase in external reserves following gradual recovery in crude oil price which helps stabilise Exchange rate. 

”I also think the COVID’19 interventions by the government and the CBN especially in the Agric value chain will begin to manifest in Q4 2020.

”The way forward to rein-in inflation  is for the government to tackle insecurity so that farmers can return to the farms and put in place a deliberate policy to promote large scale mechanized Agriculture, ” he added.

This, he suggested, would involve scaling up interventions in Agriculture including through recapitalizing  Development Finance institutions such as the Bank of Agriculture.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business News

NELFUND Loan Improves Graduate’s GPA to 3.50

Published

on

Share

A graduate of the University of Maiduguri, Shianya Ebwaseh, said the Nigerian Education Loan Fund (NELFUND) helped improve her Grade Point Average (GPA) to 3.50 through financial support that enabled her to concentrate on her studies.

Ebwaseh, who graduated from the Department of Zoology, Faculty of Life Sciences, said this in an interview on Monday in Maiduguri.

She said financial difficulties had previously affected her academic performance, as she struggled to meet her daily needs while pursuing her degree.

The graduate said she resorted to selling fried chips and groundnuts on campus to support herself, sometimes missing lectures because of the time and energy required to run the business.

According to her, the introduction of NELFUND’s student loan scheme relieved her financial burden through tuition support and a monthly N20,000 upkeep allowance.

“Before NELFUND, I struggled with my GPA because of financial challenges. I sometimes missed lectures after spending hours frying and packaging chips for sale.

“But when NELFUND came, I stopped the business and concentrated on my studies. My GPA improved to 3.50, which is Second Class Upper,” she said.

Ebwaseh said the financial support also enabled her to attend lectures regularly, purchase learning materials and prepare adequately for tests and examinations without constant worries about money.

She added that her examination scores improved significantly after she began receiving the support, attributing the change to increased concentration and financial stability.

The graduate, who said she accessed the scheme in her third year, described the application process as simple and encouraged other eligible students to apply.

She also said the programme had helped financially disadvantaged students remain in school, particularly those whose parents could not afford tuition fees and upkeep.

Ebwaseh appealed to the Federal Government to sustain the initiative, emphasising that withdrawing the support could expose many students to financial difficulties and possible dropout.

She said the scheme had given beneficiaries an opportunity to pursue their academic ambitions with fewer financial distractions.(NAN)

Continue Reading

Business News

FG Seeks Synergy Among Housing Agencies to Boost Housing Delivery

Published

on

Share

The Minister of Housing and Urban Development, Dr Muttaqha Darma, has called for synergy among government agencies in the housing sector to improve coordination and accelerate housing delivery.

Darma made the call in Abuja on Monday at the stakeholders’ conference on the proposed National Real Estate Regulatory Authority (NRERA).

The conference, themed “One vision, One Ecosystem, One National Housing and Real Estate Plan”, was organised by the Office of the Speaker, House of Representatives, and the House Committee on Housing and Habitat.

The minister said the lack of coordination among government agencies had affected the effective delivery of houses to Nigerians, noting that institutions in the sector operated independently.

“The players within the industry, all of us, operate in silos.

“Federal Housing Authority (FHA) does not even know what the Federal Mortgage Bank of Nigeria (FMBN) is doing. FMBN does not know what the Ministry of Finance Incorporated (MOFI) is doing,” he said.

According to him, the various institutions must work together towards a common goal rather than operate independently.

“Our target is to build houses for Nigerians. We are wasting our time because if we fail, it is us who fail, not the President,” he said.

The minister expressed support for the establishment of NRERA, saying the proposed authority would address the regulatory gaps in the real estate sector.

He said the ministry had reviewed the proposed legislation and recognised its potential to improve the sector.

Darma also disclosed that abandoned housing projects funded by the Federal Mortgage Bank of Nigeria (FMBN) across the country were worth about N38 billion.

He said a survey conducted by the ministry revealed abandoned FMBN-funded housing developments in every state of the federation, including the Federal Capital Territory.

“We realised about N38 billion of contributors’ money, your own money, all the Nigerian workers’ money. N38 billion is wasted,” he said.

He said that the poor management of workers’ contributions could discourage Nigerians from contributing to the National Housing Fund.

The minister urged the committee handling the proposed legislation to ensure that state governments were included in the regulatory framework.

He also called for safeguards to protect homebuyers, tenants, developers and mortgage lenders, including mandatory escrow accounts for buyers and standardised tenancy agreements.

The Managing Director and Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang, said effective regulation was necessary to restore investor confidence in Nigeria’s real estate sector.

Takang said the sector contributed 12.71 per cent to Nigeria’s Gross Domestic Product (GDP) as of June 2026, but remained largely unregulated.

He said the absence of a national licensing system had allowed unqualified individuals to operate as estate agents and developers without adequate accountability.

“Anyone can sell land, anyone can collect off-plan payments, run into tens of billions and get away with it. There are very few countries in the world where these are allowed,” he said.

He called for mandatory licensing of real estate operators and the protection of buyers’ funds through designated project accounts.

“An operator must be licensed with the authorities. No one should be operating in the real estate sector without a licence, no matter which part of the value chain they are involved in,” he said.

He added that buyers’ funds should be kept in protected project accounts and released to developers based on evidence of progress on construction.

Takang said effective regulation would attract domestic and foreign investment, protect citizens and support the Federal Government’s one-trillion-dollar economy target.

He urged the National Assembly to ensure the passage of the proposed legislation, describing it as critical to bringing order and transparency to the real estate sector.

Continue Reading

Business News

OPay Provides Update on Planned NYSE IPO, Reaffirms Normal Business Operations

Published

on

Share

From Tony Nwachukwu, Lagos

Fintech company OPay has announced the postponement of its planned public offering on the New York Stock Exchange (NYSE), following careful consideration of an ongoing inquiry by a regulatory authority.

The company said the decision to postpone the offering was taken in the best interests of the business and its customers.

In a statement shared with DAILY ASSET, OPay explained that the ongoing inquiry does not affect the services it provides to customers or how it operates in Nigeria and its other business markets.

The company also reassured customers, merchants, agents and other business partners that its operations would continue as usual, with all services remaining fully available.

“Customers can continue sending and receiving money, making payments and saving without interruption,” the statement noted.

OPay expressed appreciation to its customers, merchants, agents, business partners, employees and other stakeholders for their continued trust and support.

The company also reiterated its commitment to making financial services more inclusive through technology

Continue Reading

Advertisement

Top Stories

NEWS3 hours ago

FG Hosts World Public Relations Forum as Delegates from over 126 Countries Set to Attend

ShareBy David Torough, Abuja The Federal Government has declared its readiness to host the 2026 World Public Relations Forum (WPRF),...

NEWS5 hours ago

CIPPON Urges FG to Protect Nigerian Printing Industry

ShareBy David Torough, Abuja The Chartered Institute of Professional Printers of Nigeria (CIPPON) has renewed its call on the Federal...

NEWS6 hours ago

FG Urged to Engage Bishop Oyedepo, Spiritual Sons Leadership Models on National Development

ShareBy David Torough, Abuja  A call has been made on the Nigerian Government to engage prominent Nigerian Christian leaders, including...

NEWS6 hours ago

Regional Devt Ministry Trains Commissions’ Officers on Digital Quarterly Reporting Template

ShareBy David Torough, Abuja  The Ministry of Regional Development has commenced a capacity-building training programme for desk officers from the...

Entertainment/Arts/Culture11 hours ago

Actress Ademoye Rejects Apology over Movie Demonetization

ShareNollywood actress and filmmaker, Bimbo Ademoye, has rejected an apology from a man who filed a copyright claim against her...

Metro11 hours ago

Army Rescues 21 Kidnap Victims after Gun Battle with Terrorists in Niger

ShareBy David Torough, Abuja Troops of the Nigerian Army’s 18 Brigade have rescued 21 kidnapped victims following a fierce gun...

NEWS11 hours ago

CBN Digitalises Fiscal Data Reporting Across 36 States, FCT

ShareBy Tony Obiechina, Abuja The Central Bank of Nigeria (CBN) has commenced the digitalisation of sub-national fiscal data reporting across...

POLITICS11 hours ago

NNPC Audit: Kyari Denies N210trn Missing Funds

ShareBy David Torough, Abuja Former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has...

POLITICS11 hours ago

2027: APC Bets on Reforms, Unveils Tinubu’s Blueprint

ShareBy Eddy Ochigbo, Abuja The All Progressives Congress (APC) has unveiled an ambitious four-pillar manifesto for President Bola Tinubu’s proposed...

NEWS2 days ago

Troops Neutralise over 60 Terrorists, Rescue70 Kidnap Victims in One Week

Share By David Torough, Abuja The Armed Forces of Nigeria (AFN) have neutralised more than 60 terrorists and rescued at...