Business

Inflation Rose 67 Times Under Emefiele, Says Report

Published

2 years ago

June 19, 2023

Editor

Nigeria’s inflation rate rose not less than 67 times since June 2014, according to findings by The PUNCH.

Analysis of the Inflation Rate data provided by the Central Bank of Nigeria also showed that the consumer price index was 8.2 per cent in June 2014 when the suspended CBN Governor, Godwin Emefiele, took office.

However, the country currently struggles with an inflation rate of 22.22 per cent as of April 2023. The inflation rate rose by 0.03 per cent to 22.41 per cent in May, the highest rate in 17 years.

This means that inflation rose by 14.02 percentage points while Emefiele ran the affairs of the apex bank.

A breakdown of the number of times inflation rose showed that it rose thrice between June and December 2014.

By 2015, inflation rose 10 times, except in July and October of that year.

Inflation rate became worsened in 2016 as Nigeria hit a double-digit figure of 11.38 per cent in February of that year, and inflation was on the rise throughout the year, rising 12 times.

The economy entered a recession in 2016, the first one under the suspended CBN boss.

The situation improved in 2017 as inflation only rose in July. However, it recorded different rates of decline in the same year.

The improvement was almost maintained in 2018 but inflation rose four times during the year, specifically in August, September, November and December.

By 2019, inflation rose six times, indicating Nigerians were paying more for their purchases.

Nigeria suffered another recession in 2020 as the COVID-19 pandemic adversely affected economical activities.

In the same year, inflation was on the rise from 12.13 per cent in January to 15.57 per cent in December.

The situation improved slightly in 2021 as inflation rose four times that year, precisely in January, February, March and December.

However, the improvement faded in 2022 as inflation rose 10 times except in January and December.

By the end of 2022, inflation had risen 63 times under the detained CBN apex bank boss.

The PUNCH further observed that inflation has been on the rise throughout 2023, from 21.82 per cent in January to 22.22 per cent in April.

This overall increase occurs despite the tightening monetary policies of the Central Bank of Nigeria to curb inflation.

Last year, the apex bank decided to continuously hike interest rates as well as introduce the naira redesign policy to control the amount of cash in circulation.

The apex bank had increased the MPR from 11.5 per cent earlier last year to 18.5 per cent in May this year across seven consecutive rate hikes.

Within a period of one year, from May 2022 to May 2023, Nigeria’s interest rate rose by about 800 basis points.

The CBN Governor, Godwin Emefiele, had said the decision to keep hiking the MPR was taken to address inflation.

The governor said loosening the MPR would negate the objective of damping pent-up aggregate demand, which fuelled inflation.

Despite the adverse effect of the hike on the organised private sector, the CBN maintained that it would continue the hike until inflation falls below 15 per cent.

“For as long as that gap between inflation rate and the MPR is wide, giving a negative interest rate, it discourages investments, savings mobilization (particularly within the domestic economy) and also fast track capital outflows. The reasons for increasing the Monetary Policy Rate before have not gone, so we will keep at it while being mindful of the rebound effect of some of those measures.”

Checks by The PUNCH revealed that the last time the monthly inflation rate was below 15 per cent was in November 2020 at 14.89 per cent, about 27 months ago.

The PUNCH also observed that inflation was pegged at 17.16 per cent for 2023, according to the parameters and fiscal assumptions underpinning the 2023 Nigerian budget.

The suspended CBN boss added that the rate was having an expected impact on credit, adding that although the MPC was not excited that credit was dropping, it was necessary to reduce inflation.

“Around May 2022, credit was about N1.4tn, but as we speak today, credit is about N600bn. When you raise rate, you are trying to constrain credit.

“We are seeing it happen. And I must confess here that we are not happy that the hike in rate is constraining credit, but we have to do our work because inflation is at the heart of what we are saying we want to deal with.

“Because if you don’t raise rate to constrain credit, what that would mean is that it would create more inflationary pressure and create more problems for us,” Emefiele explained.

At the last Monetary Policy Committee meeting in May, the suspended CBN Governor, admitted that the MPC saw the continued rise in inflation as still “the biggest challenge confronting macroeconomic stability in Nigeria”.

Justifying the rising inflation rate, the MPC blamed the high energy cost and challenges around the supply chain, among others, which are beyond the reach of the CBN.

However, the detained CBN governor insisted the policy rate hikes had prevented inflation from rising by about 8 percentage points over the past year.

The World Bank recently warned that at least 64 million Nigerians are at risk of emergency food and nutritional assistance due to the attendant effects of rising inflation, climate change, among others.

According to the lending bank, inflation is currently pushing many Nigerians into poverty and food insecurity.

The bank also noted that although the CBN was making efforts to curb the rising inflation by increasing interest rates, its funding of fiscal deficit through the ways and means advances had made things difficult.

The Lagos Chamber of Commerce and Industry recently called on the CBN to explore viable options to tackle the country’s surging inflation as the frequent interest rate hikes were not producing the desired result.

In a statement, the LCCI said, “While the CBN has the overarching mandate of ensuring price stability, we suggest it should not be done in a manner that compromises growth, more especially in the face of high unemployment.

“Inflation chips away at purchasing power leads to inventory stockpiles, undermines growth, and creates a lot of economic uncertainties. Taming it, however, should not be done at the expense of growth and the most vulnerable sectors.”

The National Vice Chairman of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, recently said that the naira redesign policy which fuelled scarcity of the local currency was responsible for the spike in the country’s inflation rate.

He also faulted the NBS figures, noting that it was inconsistent with what is obtainable in the marketplace.

Speaking with The PUNCH, former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, noted that there are external and internal factors affecting inflation rate.

He also said the CBN policies were rates contributing significantly to inflation.

Nzekwe said, “There are external volatilities and internal volatilities causing rising inflation. For external volatilities, the economy is not producing, and the country is importing. The country is importing most of the things produced. That is why we are having this problem. With the Russia-Ukraine war, the country we are importing goods from are also suffering from inflation. So, we are importing inflation too.

“The CBN policies are also contributing to inflation. We have multiple exchange rates. This has encouraged inflation in the country. You cannot run monetary policy like that. It has to be on exchange rate, and I am happy that the new government will abolish the multiple exchange rate.”

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, also admitted that the CBN has contributed to the rising inflation through currency devaluation and deficit financing.

He said, “We need to look at the key drivers and how they have been impacting inflation. Number is our currency. If you look at the change, you will find a correlation between the depreciation of the currency and inflation because of the high import content in what we do.

“The second is the money supply side, especially this CBN financing of deficit. The rate at which the CBN provided money to the government rose and because worst.”

He also noted that there are other issues like insecurity and climate change, which are beyond the reach of monetary policies.

“Then we have the problem of insecurity, which affects food inflation. There was also the issue of climate change. Also, the energy cost has been rising over time. These are the key drivers, and it is not something monetary policy only can fix,” Yusuf added.

He advised the new government to examine the key drivers to understand how to manage inflation rate.

Yusuf also urged the government to slow down on borrowing from the CBN through the ways and means advances, adding that the government needs to boost foreign exchange into the country.
PUNCH

Business

Confusion Over Euro-Africa CCI’s $250m Investment In Edo

Published

13 hours ago

September 29, 2025

Editor

The $250m investment deal Governor Monday Okpebholo claimed to have secured during his recent trip to Scotland is generating ripples over capacity of the European African Chamber of Commerce and Industry (EACCI) to make such a huge investment.

The EACCI, headed by a Drector General, Dr. Kingsley Obasohan, is not known to have made any prior investment in Edo State or any part of the country.

Obasohan, who attended the Edo State Global Investment Summit virtually, announced the $250m investment.

He said the investment would be made for a period of three years.

An online search was launched to unravel the EACCI as well as the man Obasohan.

A number on the site was answered by a lady who claimed not to understand English language.

Several foreign partners were listed on the site as board members and advisory council.

Some closed associates of Obasohan said he would have to get clearance from the Board members before talking to journalists on the issue.

Spokesman for the Edo Peoples Democratic Party, Daniel Noah Osa-Ogbegi, said the party would hold Governor Okpebholo accountable to Edo people and demanded clarity on the $250m investment from Glasgow.

Osa-Ogbegi said the proposed investment has become a source of embarrassment to Edo people because of unfolding information about EACCI.

He said the party would shine light on fiscal management practices that appeared to ignore transparency and responsibility.

Secretary to the State Government (SSG), Umar Musa Ikhilo, had earlier said those that attended the Glasgow summit were interested in keying into the SHINE agenda of Governor Okpebholo.

“One of the chambers of commerce that attended, the European African Chamber of Commerce and Industry signed an MoU with the Edo State Government to invest a sum of $250 million over the next three to five years.

“Last year, diaspora remittances were the second-highest source of foreign income in Nigeria after crude oil, over $20 billion, but only 2% of that went into investment. We are creating a vehicle to help convert more of that into direct investments.”

He added that a delegation from Scotland was expected to visit Edo State in the coming months to explore specific investment projects as a follow-up to the summit.

Business

Dangote Hits Out At PENGASSAN, Says Union ‘Serial Saboteurs, Serving Oligarchs’

Published

1 day ago

September 28, 2025

Editor

The management of Dangote Petroleum Refinery has berated the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), accusing the union of decades-long sabotage of Nigeria’s oil and gas sector and serving the interests of its leaders rather than ordinary Nigerians.

In a statement issued at the weekend, the refinery described PENGASSAN’s latest directive to cut crude oil and gas supplies to the facility as another act of economic sabotage designed to inflict untold hardship on Nigerians.

“Indeed, over time, the Association has consistently proved itself as serving interests other than those of Nigerians and Nigerian workers,” the statement declared.

Dangote recalled that in 2007, when the Federal Government sold its moribund Port Harcourt and Kaduna refineries to Blue Star Consortium, led by the Dangote Group, for $750 million, it was PENGASSAN and its ally, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), that sabotaged the deal. “It is now obvious to everyone that the FGN’s decision at the time was the right one and that PENGASSAN and NUPENG ignominiously wrote their names on the wrong pages of history,” the company said.

The refinery also faulted the union’s role in the much-publicised rehabilitation of the Port Harcourt Refinery, describing it as a “ruse” which PENGASSAN “knowingly celebrated despite being a scam on Nigerians.” The statement further accused the union of opposing amendments to the Petroleum Industry Act (PIA) that would have freed up federal liquidity and attracted private-sector funding into Nigeria’s upstream oil ventures.

Beyond policy obstruction, Dangote Refinery accused the association of mismanaging billions of naira in annual check-off dues to allegedly bankroll the “lavish lifestyles” of its leaders, without accountability to members. By contrast, the refinery highlighted its own record of economic contributions within a short period, citing road construction, worker training, the creation of thousands of Nigerian jobs, and a compensation structure that “outdistances the best in the Nigerian oil and gas industry.”

“The Dangote Group is the highest employer of labor in Nigeria and the highest contributor to the tax revenues of Nigeria and its sub-nationals. What comparable social responsibility has PENGASSAN, with its billions of Naira in annual check-off dues and subscriptions, lived up to?” the statement queried, challenging the union to publish its audited accounts for the past ten years. “Can it publish publicly its account for the last 10 years and list out its corporate responsibility activities within that timeframe?”

The refinery insisted that PENGASSAN’s recent directive to withdraw services and cut off essential fuel supplies, including but not limited to petrol, diesel, kerosene, cooking gas and aviation fuel was reckless, lawless and dangerous. It said the order is not about protecting Nigerian workers, but it is about a cabal of oligarchs weaponising hardship against over 230 million Nigerians.

“In the process, it (PENGASSAN) cares little if at all about the unbearable hardship and terror it would thereby inflict on all Nigerians, including but not limited to the provision of essential services in our hospitals and medical facilities, schools (nursery and right up to tertiary and research institutions), emergency services, communications facilities, transportation systems, etc,” it said.

Dangote Refinery called on the Federal Government and security agencies to step in immediately to protect the facility and the nation’s energy security, stressing that the union must not be allowed to “bully Nigerians into chaos and economic sabotage.”

According to Tribune Online, the federal government has announced readiness to broker peace between Dangote Refinery and PENGASSAN, inviting both to a meeting scheduled for Monday.

Business

Fuel Scarcity Looms As PENGASSAN Stops Gas, Crude Supply To Dangote Refinery

Published

3 days ago

September 27, 2025

Editor

The industrial dispute between the Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria took a dramatic turn on Saturday as the union ordered seven branches to cut off crude oil and gas supplies to the $20bn facility.

In a letter dated September 26 and signed by its General Secretary, Lumumba Okugbawa, the union accused the refinery’s management of sacking its members in retaliation for exercising their constitutional right to join the union.

The union’s move marks an escalation in the standoff, with PENGASSAN accusing the refinery of anti-labour practices and the unlawful sack of its members.

In the directive issued to its branch chairmen, PENGASSAN instructed its branch chairmen in key upstream and midstream oil companies, including TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, and Nigerian Gas Infrastructure Company, to immediately cut off all crude oil and gas supplies to the refinery.

The directive comes after PENGASSAN alleged that Nigerian workers were sacked by Dangote Refinery after joining the union, claiming that management also withdrew staff buses and denied entry to locals while allowing expatriates access.

The union threatened to picket the refinery if the situation was not addressed.

In a statement on Friday, the refinery clarified that only a small number of workers were affected by what it described as a reorganisation aimed at preventing acts of sabotage within the facility. It said over 3,000 Nigerians remain in employment, rejecting claims of mass layoffs.

Dangote maintained that the restructuring was necessary after what it described as recurring acts of sabotage in different units of the refinery, which posed serious risks to human lives and operations.

As a result, PENGASSAN instructed its branches in TotalEnergies, Seplat, Chevron, Oando, Shell Nigeria Gas, Renaissance, and NGIC to cut gas supply to the refinery immediately.

The union described the move as “illegitimate” and accused the refinery of spreading misinformation instead of addressing the matter through dialogue.

“As you are aware, the Management of Dangote Petroleum Refinery has disengaged our members in reaction to the exercise of their constitutional right to being unionized.

“They have gone further on a mission of misinformation and propaganda to justify this illegitimacy rather than engaging meaningfully with us to right the wrong.

“Consequent to these, you are hereby directed to cut off gas supply to NGIC effective immediately. All crude oil supply valves to the Refinery should be shut. The loading operation for vessel headed there should be halted immediately,” the directive read.

The union further mandated the NGIC Chairman to ensure strict compliance with the order and told all branch chairmen to give regular updates on the action taken.

“NGIC Chairman, ensure that gas supply to the Refinery is cut off effective immediately. All chairmen on this summons are to report promptly the progress of the directive. Kindly accept the assurances of our highest esteem. Thank you,” the statement read.

Reaffirming its solidarity, PENGASSAN ended the directive with its slogan: “Injury to one! Injury to all!”

On Thursday, the company announced it would suspend petrol sales in naira from September 28 following the exhaustion of its crude-for-naira allocations.