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Nigeria’s Inflation Rate Hits 12.13%

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International Monetary Fund, IMF
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By Tony Obiechina and Mathew Dadiya, Abuja 

The Consumer Price Index, (CPI) which measures inflation increased to 12.13 per cent (year-on-year) in January 2020. This is 0.15 per cent points higher than the rate recorded in December 2019 (11.

98) percent. 

According to a report obtained from the Nigeria Bureau of Statistics (NBS) on Tuesday, On month-on-month basis, the Headline index increased by 0.

87 per cent in January 2020, this is 0.02 per cent rate higher than the rate recorded in December 2019 (0.85) percent. 

An International Monetary Fund (IMF) has advised the Central Bank of Nigeria (CBN) redouble its action in dealing with the banking system vulnerabilities, commending the bank’s recent efforts at reducing legacy non-performing loans.

The IMF noted that the introduction of risk-based minimum capital requirements by the CBN would also help strengthen bank resilience. 

Resident Representative and Mission Chief for Nigeria, Amine Mati, said this when he led Senior staff team of the IMF on a visit to Lagos and Abuja from January 29-February 12, 2020 to conduct its annual Article IV Consultation discussions on Nigeria’s economy.

At the end of the visit, Mr Mati said that notwithstanding the significant increase in lending, concerns about shortened maturity, asset quality and conflicting monetary policy signals call for revisiting the minimum lending to deposit ratio directive.

The Fund also advised the Federal Government to implement structural reforms – particularly executing the much-delayed power sector recovery plan, implementing the anti-corruption and financial inclusion strategy.

According to the IMF, addressing infrastructure and gender gaps remain essential to boosting inclusive growth.

The team observed that growth was still recovering, inflation was increasing, and external vulnerabilities are rising; fiscal reform momentum and recent tightening of monetary policy are welcome; major policy adjustments remain necessary to contain short-term vulnerabilities and unlock Nigeria’s growth potential.

Mr. Mati stated: “The pace of economic recovery remains slow, as declining real incomes and weak investment continue to weigh on economic activity. Inflation—driven by higher food prices—has risen, marking the end of the disinflationary trend seen in 2019. External vulnerabilities are increasing, reflecting a higher current account deficit and declining reserves that remain highly vulnerable to capital flow reversals. The exchange rate has remained stable, helped by steady sales of foreign exchange in various windows.

“High fiscal deficits are complicating monetary policy. Weak non-oil revenue mobilization led to further deterioration of the fiscal deficit, which was mostly financed by Central Bank of Nigeria (CBN) overdrafts. The interest payments to revenue ratio remains high at about 60 percent.

“Under current policies, the outlook is challenging. The mission’s growth forecast for 2020 was revised down to 2 percent to reflect the impact of lower international oil prices. Inflation is expected to pick up, while deteriorating terms of trade and capital outflows will weaken the country’s external position.

“Recognizing these vulnerabilities, the authorities have taken a number of welcome steps. These include measures to boost revenue through the adoption of the Finance Bill and Deep Offshore Basin Act and; and improve budget execution by adopting the 2020 budget by end-December 2019. The tightening of monetary policy in January 2020 through higher cash reserve requirements to respond to looming inflationary pressures is welcome. Progress on structural reforms—particularly in Doing Business, finalizing power sector reforms, and strengthening governance—is commendable.

“Major policy adjustments remain necessary to contain short-term vulnerabilities, build resilience, and unlock growth potential.

“Non-oil revenue mobilization—including through tax policy and administration improvements—remains urgent to ensure financing constraints are contained and the interest payments to revenue ratio sustainable. Recourse to central bank overdrafts should be limited and the mission supports the authorities’ plans to use the low domestic yield environment to front load their financing requirements.

“Further tightening of monetary policy—albeit through more conventional methods—is needed to contain domestic and external pressures arising from large amounts of maturing CBN bills. The mission reiterated its advice on ending direct central bank interventions, securitizing overdrafts to introduce longer-term government instruments to mop up excess liquidity and moving towards a uniform and more flexible exchange rate. 

The IMF also advised the apex bank to remove restrictions on access to foreign exchange for the 42 categories of imported goods would be needed to encourage long-term investment.

“Nigeria’s border closure will continue to have significant economic consequences on the country’s neighbors. It is important that all involved parties quickly resolve the issues keeping the borders closed—including to stop the smuggling of banned products.

“The team held productive discussions with senior government and central bank officials. It also met with representatives of the banking system, the private sector, civil society organizations and development partners. The team wishes to thank the authorities and all those it met for the productive discussions, excellent cooperation, and warm hospitality,” the Fund stated.

The percentage change in the average composite CPI for the twelve months period ending January 2020 over the average of the CPI for the previous twelve months period was 11.46 per cent, showing 0.06 per cent point from 11.40 per cent.

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Tinubu Makes Numerous Promises at Slain Soldiers Burial

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President Bola Tinubu has directed the military to within the next 90 days ensure that all the benefits of the 17 officers and men of the army killed in Okuama on March 14 be paid to their families.

Tinubu said that government would provide a house in any part of the country to each of the families of the four officers and 13 soldiers.

He said that all the children of the deceased would enjoy a Federal Government scholarship up to University level.

He described the officers and soldiers as patriotic, brave and gallant Nigerians.

The president said that the deceased gave their lives to defend and protect the Nation against internal and external threats.

At the burial ceremony of the officers and soldiers on Wednesday in Abuja, Tinubu said that their death serves as a rallying point for Nigerians to condemn crime and criminality.

“They went as peacemakers and peacekeepers, seeking to bring an end to the hostilities between the two communities.“They didn’t go with tanks, machine guns and other weapons. They were on a mission of peace.“The officers and soldiers who lost their lives that day were patriots, brave and noble men who gave their lives to defend and protect our nation against internal and external threats,” he said.The 17 military personnel killed included Lt.-Col. Ali, Maj. D.E Obi, Maj. S.D. Ashafa, Capt. U. Zakari, Staff Sgt. Yahaya Saidu, Corporal Danbaba Yahaya, Corporal Kabir Bashir, Lance Corporal Abdullahi Ibrahim, Lance Corporal Bulus Haruna, Lance Corporal Sole Opeyemi, and Lance Corporal Bello Anas.The rest were Private Alhaji Isah, Private Clement Francis, Private Abubakar Ali, Private Adamu Ibrahim, Private Hamman Peter, and Private Ibrahim Adamu.Tinubu said that the deceased have all been awarded posthumous national honours.“The four gallant Officers have been awarded Member of the Order of Niger (MON). And the 13 courageous soldiers who also lost their lives have been Awarded Officer of the Federal Republic Medals.“As Commander-In-Chief, I do not take the contributions of members of our Armed Forces for granted. I recognise your valour and bravery.

“I honour your unflinching commitment to making our country safe from criminals, bandits, kidnappers and insurrectionists.”The President urged the officers and men of the military not to be deterred by these setbacks and be prepared to continue to work for peace and harmony.Tinubu also called on Nigerians to rededicate themselves to rebuilding communities and making them places where love, tolerance and harmony reigns.“Leaders at all levels, especially community leaders and traditional rulers, must work to strengthen the bonds that unite us. We must end the cycle of violence and bloodletting.“I want to make it clear, once more, that those who committed this heinous crime will not go unpunished. We will find them and our departed heroes will get justice.“The elders and chiefs of Okuoma also have a duty to help the military in fishing out the gunmen who committed the barbaric crime against our men.”The president commended the Armed Forces for their restraint in choosing not to carry out any reprisal attacks in Okuoma or its neighbouring communities.“We must all ensure that the innocent people of Okuoma are not made to bear the punishment of the guilty and wicked among them.”

On his part, the Chief of Army Staff (COAS), Lt.-Gen. Taoreed Lagbaja, said the officers and soldiers of the Nigerian Army who were gruesomely murdered in Okuama Community in Delta on March 14, left behind 10 widows three of whom are pregnant and 21 orphans.Lagbaja made this known at the burial of the 17 personnel comprising one Lieutenant Colonel, two Majors, one Captain and 13 soldiers, on Wednesday at the National Cemetery in Abuja.According to him, the Okuama killing has added to the care of the Nigerian army and, by extension, the Nigeria state, 10 widows, three of whom are four, five, and eight months pregnant, 21 orphans, and many other dependents, including parents.“While commiserating with the families of these gallant soldiers, I assure them that the Nigerian army and the good people of this country will not leave them in the cold.“We shall do all within our power to provide succour to them and preserve the memories of their departed loved ones,” he said.Lagbaja said he considered his toughest job to be putting fine men and women in harm’s way, sometimes knowing that they might not return to their families and loved ones.He added that his men, correspondingly and intriguingly, know that in spite of the equipment, training, and other forms of preparations, sometimes some may not make it back alive, while some may return handicapped.According to him, “when soldiers die in the hands of the enemies of the State, we take it as dying for what the nation has considered a just cause; we celebrate them as gallant heroes.“But when they are gruesomely murdered by the very people they are trained, equipped, and took an oath to protect, it is highly demoralizing.“It is no longer news that 17 of the Nigerian Army’s finest men, whom we have come to bury, were murdered in a reprehensible manner on March 14 in the Okuama community of Delta State while they went on a legitimate peace-making mission.

“It grieves my heart that it took our search and recovery effort over 72 hours to recover some vital organs of the decapitated and disembowell bodies of my men that were scattered all over the Okuama community by the community youths and their friends.“I consider it the most barbaric act any citizen or community can commit against the authority of the state, and I must place on record that a lot of restraints have been exercised so far in our search and recovery efforts for missing arms, ammunition, other equipment, and body parts.“I assure the President and all Nigerians that the Nigerian Army remains committed to its constitutional responsibilities and will not be deterred by setbacks such as witnessed in the Okuama community.“As tasked by the President and Commander-In-Chief of our Armed Forces, the Nigerian Army, with the assistance of its sister services and other security agencies, is committed to bringing the perpetrators of the Okuama murder to book and recover all service and personal belongings taken from the murdered troops.“The Nigerian Army will continue to seek the cooperation of all well-meaning Nigerians, particularly in the affected area, towards swift and successful conduct of our search and recovery operations,” he said.The Chief of Defence Staff (CDS), Gen. Christopher Musa, said the fallen heroes exemplified the very best of service to nation and love for country.Musa said they were the vanguards of peace, the guardians of freedom, and the sentinels of security, adding that their selflessness and unwavering dedication to duty would forever be etched in their hearts and memories.He assured the families of the deceased officers of the support of the nation and the armed forces in every way possible, urging them to find solace in the knowledge that their loved ones made an indelible mark on the nation’s history.The defence chief said the military would honour their memory by continuing the fight against those who sought to undermine the peace and security of the nation.

“We will remain steadfast in our resolve to build a nation worthy of your sacrifice.“The loss we feel today is immeasurable, but we must not allow it to dim the light of hope within us.“Instead, let us use this moment as a rallying cry to come together as a nation, to support our armed forces, and to work tirelessly towards a Nigeria free from the grip of violence and insecurity.“We owe it to these fallen heroes to honour their memory by redoubling our efforts to create a safer and more prosperous nation for all.“Let us build a nation where every citizen can live without fear, where communities can thrive, and where our children can grow up knowing the true meaning of security and stability.“To the men and women who continue to serve in the armed forces, I want to express my deepest gratitude for your dedication to duty.“Your commitment to defending our nation, even in the face of great peril, is truly commendable,” he said.Speaker, House of Representatives, Tajudeen Abbas, Deputy Senate President, Jibrin Barau, Secretary to the Government of the Federation, George Akume, and governors of Delta, Bayelsa, Kano, Kogi and Imo states amongst others attended the burial ceremony.

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Dangote, Elumelu Make Economic Planning System List

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By Lubem Myaornyi, Abuja

President Bola Tinubu has in a strategic move to bolster the nation’s economic governance frameworks and ensure robust and coordinated economic planning and implementation, approved the establishment of the Presidential Economic Coordination Council (PECC) and the creation of the Economic Management Team Emergency Taskforce (EET).

PECC comprises leaders and key government officials like: President of the Federal Republic of Nigeria – Chairman of the PECC; Vice-President of the Federal Republic of Nigeria – Vice-Chairman of the PECC / NEC Chairman; President of the Nigerian Senate; Chairman, Nigeria Governors’ Forum; Coordinating Minister for the Economy and Minister of Finance; Governor of the Central Bank of Nigeria; Minister of Agriculture and Food Security; Minister of Aviation and Aerospace Development; and Minister of Budget and Economic Planning.
Others are: Minister of Communications, Innovation and Digital Economy; Minister of Industry, Trade and Investment; Minister of Labour and Employment; Minister of Marine and Blue Economy; Minister of Power; Minister of State, Petroleum Resources; Minister of State, Gas; Minister of Transportation; and Minister of Works.Tinubu also included 13 members of the organized private sector to drive the nation’s economy.The PECC will also comprise key members of the organized private sector, with the following members joining for a period not exceeding one year, subject to the President’s directive: Alhaji Aliko Dangote; Mr. Tony Elumelu; Alhaji Abdulsamad Rabiu; Ms. Amina Maina; Mr. Begun Ajayi-Kadir; Mrs. Funke Okpeke; and Dr. Doyin Salami.The rest members are: Mr. Patrick Okigbo; Mr. Kola Adesina; Mr. Segun Agbaje; Mr. Chidi Ajaere; Mr. Abdulkadir Aliu; and Mr. Rasheed Sarumi.

In the president’s determination to address immediate economic challenges and ensure the streamlined execution of economic strategies, President Bola Tinubu has established the Economic Management Team Emergency Taskforce (EET) with a mandate to formulate and implement a consolidated emergency economic plan. The taskforce comprises key government officials and industry leaders in furtherance of the President’s collaborative approach toward achieving economic resilience and growth. The EET is now mandated to submit a comprehensive plan of economic interventions for 2024 to the PECC, covering the next six months, for immediate implementation within two weeks of its inauguration.The EET will meet twice weekly and is composed of the following members: Coordinating Minister for the Economy and Minister of Finance (Chairman of the EET); Minister of Budget and Economic Planning; Minister of Power; Minister of Agriculture and Food Security; Coordinating Minister of Health and Social Welfare; and Minister of Industry, Trade and Investment.Others include: Governor of the Central Bank of Nigeria; National Security Adviser; Chairman, Nigeria Governors’ Forum; Governor of Anambra State; Governor of Ogun State; Governor of Niger State; Executive Chairman, Federal Inland Revenue Service; Director-General, Budget Office of the Federation; GCEO, NNPC Limited; Director-General, Nigeria Economic Summit Group; Special Adviser to the President on Energy; Dr. Bismarck Rewane, Economist; and Dr. Suleyman Ndanusa, Economist.The Economic Management Team, established in October 2023, and chaired by the Coordinating Minister for the Economy and Minister of Finance, serves as the working group under the Presidential Economic Coordination Council (PECC), playing a crucial role in the economic governance structure established by the President. The EMT traditionally meets monthly or as required, but will now suspend its meetings for the duration of the EET’s mandate (six months).The EMT is composed of the following officials: Coordinating Minister for the Economy and Minister of Finance (EMT Chairman); Governor of the Central Bank of Nigeria; Minister of Budget and Economic Planning; Minister of Industry, Trade and Investment; Minister of Communications, Innovation and Digital Economy; Minister of Works; Minister of Labour and Employment; and Minister of Agriculture and Food Security.Other officials include: Minister of State, Petroleum Resources; Minister of State, Gas; Minister of Power; Minister of Transportation; Minister of Aviation and Aerospace Development; and Minister of Marine and Blue Economy.The Chairman of the EMT may, as needed, call on any Federal Minister or Head of Agency to brief the EMT on key programmes and developments affecting the economy.The President’s formation of the PECC, under his Chairmanship, alongside the creation of the EET, led by the Chairman of the EMT, and the EMT itself, is the manifestation of a unified strategy aimed at enhancing Nigeria’s economic management architecture for verifiably improved performance. The formation of these teams will complement existing economic governance structures, including the National Economic Council (NEC), which is chaired by the Vice-President.Over the next six months EET will focus on the rapid implementation, monitoring, and evaluation of critical initiatives, strengthening the Tinubu-led administration’s collective approach to advancing Nigeria’s economic objectives.

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North-East Region Loses  $6.7bn to Insurgency — Zulum

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By Tony Obiechina, Abuja

Governor of Borno State, Babagana Zulum has revealed that the North Eastern states lost $6.7billion to insurgency.

He stated this during a visit to the Director-General, Nigeria Country Department of African Development Bank (AfDB), Mr Lamin Barrow in Abuja.

Zulum made the assertion while commending AfDB on the implementation of its $65.

75million Inclusive Basic Service Delivery and Livelihood Empowerment Integrated Programme (IBSDLEIP) to ameliorate insurgency.

Currently, IBSDLEIP is implemented in the North East states of Bauchi, Borno, Adamawa, Gombe and Taraba.

Zulum said the root driver of insurgency in the state was hunger and the initiative focuses on providing basic amenities that would reintegrate the Internally Displaced Persons (IDPs) into the society.

He said, “First and foremost, I want to commend the bank on the successes so far recorded in the implementation of the Inclusive Basic Service Delivery and Livelihood Empowerment Integrated Programme in Borno State.

“The insurgency in Borno has triggered acute humanitarian and livelihood crises, devastating the economic activities of our populace, with the root cause to be poverty and lack of basic infrastructure.

“An outcome of the recovery and peacebuilding assessment of the impact of insurgency revealed that over 6.7 billion dollars were lost to insurgency, out of which Borno state accounted for two-thirds of the amount.

“The implementation of the Inclusive Basic Service Delivery and Livelihood Empowerment Integrated Programme has helped us in addressing some of the humanitarian, livelihood and infrastructural problems arising from Boko Haram Insurgency in the State.”

Zulum expressed the state’s readiness to abide by the set rules and regulations of the bank, adding that, “We are ready to abide by the project procurement processes and implementation guidelines of the bank and we are also committed to working with the bank’s team and other stakeholders to ensure the completion of the project.”

Responding, AfDB’s Director-General expressed the continued commitment of the bank to support the reintegration of the displaced population in the state and improve the livelihoods of the people.

Barrow said, “We want to commend the Governor for his visionary and hands-on leadership style. We reassure him and the state of the commitment and continued support of the bank in improving the livelihoods and quality of life of the people of Borno State.”

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