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Naira Depreciation, Subsidy Removal Push Inflation To 22.79%

Published

2 years ago

July 18, 2023

Nigeria’s inflation rate rose further to 22.79 per cent Year-on-Year (YoY) in June 2023 from 22.41 per cent previous month of May.

But analysts appear surprised that the increase was moderate, beating their projections at the backdrop of the reforms in the petroleum and foreign exchange sectors which pushed up prices in June.

However, the National Bureau of Statistics, NBS, said the food inflation rate quickened YoY to 25.25 per cent in June from 24.82 per cent in May.

The Bureau stated: “On a YoY basis, the Headline inflation rate was 4.19 percent points higher compared to the rate recorded in June 2022, which was 18.6 percent.

“This shows that the headline inflation rate (YoY basis) increased in June 2023 when compared to the same month in the preceding year (i.e., June 2022).

“On a year-on-year basis, the Urban inflation rate in June 2023 was 24.33 percent, this was 5.23 percent points higher compared to the 19.09 percent recorded in June 2022.

“The Rural inflation rate in June 2023 was 21.37 percent on a YoY basis; this was 3.25 percentage points higher compared to the 18.13 percent recorded in June 2022.”

On food inflation, it said: “The food inflation rate in June 2023 was 25.25 percent on a YoY basis; this was 4.65 percentage points higher relative to the rate recorded in June 2022 (20.6 percent).

“The rise in Food inflation on a YoY basis was caused by increases in prices of oil and fat, bread and cereals, fish, potatoes, yam and other tubers, fruits, meat, vegetable, milk, cheese, and eggs.”

Commenting on the development, analysts at CardinalStone Research said: “The outturn defied expectations and printed materially lower than our projection of 25.0%, with deviations stemming from a positive surprise in the core inflation basket.

“We had anticipated that the 175.2% jump in average PMS prices (following subsidy removal) would have resulted in a 300-400bases points (bps) surge in Month-on-Month (MoM) headline inflation.

“However, the latest report revealed that while all its subcomponents increased by an average of 13bps MoM, core inflation surprisingly moderated by 7bps.”

However, the analysts added, “Despite the shock numbers, we see latitude for more inflationary pressures in the coming months partly due to the lagged impact of subsidy removal and its pass-through to broader prices. In addition, the recent uptick in parallel market rates (possibly stoked by seasonal demand) will likely add another layer of pressure on prices.”

Commenting as well, analysts at Cordros Research said: “We expect pressures on food inflation to remain intact in July, as higher transport costs will likely continue to filter into food prices. In addition, we understand that Russia is considering terminating the Black Sea grain deal (which expires on 17 July) as part of the agreement concerning the country is yet to be fulfilled. Accordingly, we expect the preceding to pose further risk to imported food prices in the near term”.

“Finally, July marks the beginning of the lean season in the north amid high flooding in the southern region. Thus, the food demand-supply gap is likely to remain wide. Therefore, we expect food prices to rise by 2.10% in July.”
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Related Topics:#Naira #Tinubu Inflation subsidy

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DSS Issues Warning, Arrests Man For Circulating Fake Recruitment Materials

Published

11 hours ago

August 24, 2025

Editor

The Department of State Services (DSS) has disclosed the arrest of one Mr. Eze Ezenwa Benard, who was recently apprehended for circulating fake DSS recruitment past questions and answers on Facebook.

The agency, while warning the public in a statement on Saturday, said the suspect operated through a page known as “Jobs and Education”, where he advertised the fraudulent materials and charged unsuspecting members of the public one thousand naira (N1,000) for access.

“The public is hereby cautioned to disregard any materials, as the DSS does not sell or distribute recruitment questions, answers, or examination guides through private individuals or social media pages. Recruitment into the Service, when necessary, follows specialised procedure in accordance with extant laws and due process,” the statement reads.

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‘Na Only People You Gave Work Love You,’ Singer Speed Darlington Tells Tinubu

Published

11 hours ago

August 24, 2025

Editor

Singer Speed Darlington has told President Bola Tinubu that public admiration cannot be bought, warning that only those who received appointments or jobs from the government truly support him.

In a video posted on Saturday, August 23, the singer said, “Everything isn’t about the economy! There is more to leadership than the economy. See as everybody dey call your name, dey complain. Nobody loves you. Na only the ones you gave work, na them love you. Even your own tribe dey complain about you.”

Darlington, an Igbo man, urged Tinubu to focus on police reform and respect for human rights. “The Nigerian police is an oppressive agency rooted in human rights violation. As a matter of fact, if they do not violate you, it’s as if they are not even doing their job.

“The idea of arrest before investigation is a pure human rights violation. You arrest and hold a person before you dey investigate. Please, before you leave office, please speak to your Yoruba brother IGP man,” he added.

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Before You Leave Office, Reform The Police — Speed Darlington Urges Tinubu

Published

11 hours ago

August 24, 2025

Editor

Popular controversial singer Speed Darlington has called on President Bola Tinubu to reform the Nigerian Police Force, urging the government to prioritise citizens’ rights alongside economic growth.

In a video posted on Saturday, the entertainer criticised what he described as the police’s systemic human rights violations and oppressive practices.

“Mr President, before you leave office, whether you secure a second term or not, try your best to improve Nigeria. Everything isn’t about the economy!

“There is more to leadership than the economy. See as everybody dey call your name, dey complain. Nobody loves you. Na only the ones you gave work, na them love you. Even your own tribe dey complain about you,” he said.

The singer, who identifies as Igbo, urged Tinubu to engage with the Inspector-General of Police and implement reforms.

“As an Igbo man, the advice I can give you so people will know your name and remember you for something good is to reform the police. Reform the police.

“The Nigerian police is an oppressive agency rooted in human rights violation. As a matter of fact, if they do not violate you, it’s as if they are not even doing their job.

“The idea of arrest before investigation is a pure human rights violation. You arrest and hold a person before you dey investigate,” he added.

Darlington also recounted his personal ordeal with law enforcement, highlighting the system’s abuse of power.

“I was held for two months after the judge had ordered my release. FID held me for two months. According to my lawyer, the Nigerian law gives only 28 days for investigation.

“They held me for two months. What is the extra month for? Because they can. If you give them money, they oppress your enemy. I have experienced it,” he said.