Business

Inflation Hits 18yr High at 22.4%, To Surpass 23% This Month

Published

2 years ago

June 16, 2023

Editor

Investment analysts have predicted that headline inflation rate will rise above 23 percent on account of recent government policies including removal of fuel subsidy and naira depreciation in the forex market.

Meanwhile, the National Bureau of Statistics, NBS, Consumer Price Index, CPI, report for May, 2023, shows headline inflation rose year-on-year by 0.19 percentage point to 22.41 percent in May from 22.22 percent in April.

This is the highest inflation rate recorded in Nigeria since September 2005 and the third straight month of staying within the 22 percent band.

Recall that the Federal Government recently removed fuel subsidy resulting in over a hundred percent rise in the pump price per litre while the Central Bank of Nigeria, CBN, two days ago, floated the foreign exchange rate, resulting in 40% depreciation of the local currency, the Naira, to N664.04/$ in the official market.

The NBS report stated: “In May 2023, the headline inflation rate increased to 22.41 percent relative to April 2023 headline inflation rate which was 22.22 percent.

“Looking at the movement, the May 2023 inflation rate showed an increase of 0.19 percent points when compared to April 2023 headline inflation rate.”

The Bureau also said that food inflation rose to 24.82 percent in May from 24.61 percent in April due to increases in prices of oil and fat, yam and other tubers, bread and cereals, fish, potatoes, fruits, meat, vegetable, and spirit.

Commenting on the development, Cowry Asset Management Plc, in its inflation update report for May, said: “Over time, the Nigerian government, through the monetary authority, has taken several measures to tame inflation, including raising interest rates, devaluing the naira, and subsidising the prices of some essential goods.

“However, these measures have proved abortive and unsuccessful in bringing inflation under control.

“Notwithstanding these efforts, the new administration has hinted at the need for interest rate moderation in a bid to increase investment and consumer purchasing power.

“We note that this move will bring about a further spike in the rate of inflation.

“Also, CBN’srecentdecisionto float the naira will bring about further depreciation of the naira, while we expect to see the effect of the current subsidy removal by the new administration on price pressure and economic activities.

“The resultant effect of this decision will be more expensive imports and upward inflation pressure.

“Meanwhile, we expect a further surge in the headline inflation index to 23.6 percent in June.”

In their Economic Bulletin for June, analysts at Financial Derivative Company, FDC, said:

“The full impact of the petrol price adjustment will be felt in the inflation numbers for June, which initial estimate is put at 25.2 percent.

“However, the price of diesel, which is the major fuel used by trucks for logistics, declined by 12.70 percent to N660/ltr in June from its peak of N756/ltr in May. This is expected to mildly ease inflation pressures. Another interest rate hike may be imminent.”
VANGUARD

Business

Naira Appreciates Against US Dollar After Highest Dip

Published

16 hours ago

November 21, 2025

Editor

The Naira bounced back, recording an appreciation against the United States dollar at the official foreign exchange market after hitting its lowest point this week.

Data from the Central Bank of Nigeria showed that the Naira strengthened to N1,452.13 on Thursday, up from N1,454.19 traded on Wednesday.

This represents a gain of N2.06 against the dollar on a day-to-day basis.

Meanwhile, in the black market, the Naira depreciated by N5 to N1,470 per dollar on Thursday, down from N1,465 recorded the previous day.

The apex bank’s data indicated that the country’s external reserves continued to rise, standing at $44.12 billion as of 19 November 2025, despite the mixed sentiments in the currency exchange market.

Recall that on Wednesday, the Naira recorded its highest depreciation against the dollar at the official FX market.

Business

Naira Records First Appreciation Against US Dollar As Foreign Reserves Hit $46.7bn

Published

2 days ago

November 19, 2025

Editor

The Naira recorded its first appreciation against the United States dollar at the official foreign exchange on Tuesday this week.

The Central Bank of Nigeria’s data showed that the Naira strengthened on Tuesday to N1,447.43 per dollar, up from N1,448.03 exchanged on Monday.

This means that the Naira gained N0.6 against the dollar on a day-to-day basis.

Meanwhile at the black market, the Naira remained unchanged at N1,465 per dollar on Tuesday, the same rate exchanged on Monday.

Checks on Nigeria’s foreign reserves showed that it has risen to $43.97 billion as of November 17th, 2025, according to the Central Bank of Nigeria’s data.

Meanwhile, the apex bank governor, Olayemi Cardoso, in an event on Tuesday, said the country’s foreign reserves rose to a seven-year high of $46.7 billion as of November 14.

Business

Dangote Sugar Announces South New CEO

Published

2 days ago

November 19, 2025

Editor

Dangote Sugar Plc has announced Mr Thabo Mabe, a South African, as its new Group Managing Director and Chief Executive Officer.

This follows the sudden resignation of Mr Ravindra Singhvi, an Indian.

The company disclosed this in a shareholders’ notice on Tuesday, in compliance with Nigerian Exchange Limited regulations.

Mabe’s appointment takes effect from December 1, while Singhvi’s resignation is effective from November 3ⁿ2025. The firm did not state a reason for Singhvi’s resignation.

“Mr Singhvi made significant contributions to the growth and transformation of the company and leaves behind a record of operational excellence,” the statement, signed by Mrs Temitope Hassan, Company Secretary and Legal Adviser, read.