• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN says cryptocurrency ban in interest of Nigerians

      February 25, 2021

      Companies-in-Action

      Zenith Bank in strong operational performance as profit rises 10.4% to N230.56bn in FY20

      February 25, 2021

      Companies

      United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020

      February 23, 2021

      Finance

      CIBN revives mentorship initiative for bank workers

      February 20, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Insurance Business

      Enterprise risk management surges amid pandemic, RIMS reports

      February 25, 2021

      WORLD BUSINESS & ECONOMY

      Hyundai to recall 82,000 electric cars over battery malfunction

      February 25, 2021

      Frontpage

      Global health insurance premiums fall amid pandemic, says new report

      February 24, 2021

      Frontpage

      Insurance M&A record highest growth in Africa, Middle East in 2020

      February 23, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Oil and Gas

      REA delivers 100kW hybrid solar mini grid to Edo community

      February 25, 2021

      Oil and Gas

      OPL 310: LEKOIL engages Optimum Petroleum over CRSA agreement

      February 25, 2021

      Frontpage

      Nigeria still losing 200,000bpd crude daily as NNPC enlists army’s intervention

      February 25, 2021

      Frontpage

      Nigeria to sell 170MW electricity capacity to Togo from Calabar plant

      February 24, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Coronation MB analysts project sharp rates rise after Nigeria recession exit

      February 25, 2021

      Analyst Insight

      How NITDA can further foster data protection compliance in Nigeria

      February 22, 2021

      Analyst Insight

      Do we need more start-ups in insurance?

      February 16, 2021

      Analyst Insight

      Naira, PMI’s and Inflation in focus

      February 16, 2021

Agency Finance Frontpage

Nigeria food crisis begins to signal as inflation rises to 14.23%, highest since February 2018

November 17, 2020454 views0 comments

By Zainab Iwayemi

 

  • The composite food index rose by 17.38%

 

A food crisis appears to be in the making in Nigeria, Africa’s largest economy by gross domestic products and the continent’s most populous. The country’s October inflation numbers were released on Monday and it showed that the inflation rate rose to 14.23 percent for the month, the highest since February 2018.

Read Also:

  • Insurance M&A record highest growth in Africa, Middle East in 2020
  • Jumia’s road to profitability steady as gross profit rises 22% to €92.8m in FY20
  • Zenith Bank in strong operational performance as profit rises 10.4% to…
  • Nigeria records 6% drop in vessel traffic
  • How NITDA can further foster data protection compliance in Nigeria

But it was the composite food index, which rose by 17.36 percent that represents early signal of a food crisis ahead for a country where poverty has become rampant and a recent protest against police brutality was hijacked by hoodlums who burnt down shopping malls and looted warehouses where food palliatives meant to cushion the impact of the coronavirus pandemic on citizens were stashed away.

The National Bureau of Statistics (NBS), the government agency responsible for compiling inflation figures, among other national economic data, said the October inflation number had surged as a result of incessant increase in food items such as bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, vegetable, alcoholic and food beverages as well as oils and fats; though, the increment cuts across all classifications that yielded the headline index which rose on a month-on-month basis by 1.54 per cent in October, indicating a 0.06 per cent rate higher than 1.48 per cent recorded in September.

The October inflation rate represents a 0.52 per cent increment compared with the preceding month’s which stood at 13.71 per cent. It comes amidsta policy by the country to close its land borders to prevent smuggling, especially of rice, which it has banned to allow for local production of the staple; social unrest in the month of October; as well as scarcity of a number of agricultural produce as we approach the season of festivity in Nigeria.

Accordingly, the composite food index rose by 0.72 basis points to reach 17.38 per cent in October compared to 16.66 per cent recorded in the prior month. Similarly, the food sub-index increased on a monthly basis by 0.08 per cent points to 1.96 per cent in October from 1.88 per cent recorded in September; while the core inflation, which excludes the prices of volatile agricultural produce, stood at 11.14 per cent in October, rising by 0.56 per cent when compared with 10.58 per cent recorded in September, and the core sub-index increased by 1.25 per cent by 0.31 per cent when compared with 0.94 per cent last month.

A cursory look into the report further shows that the highest increases in the month of October were recorded in prices of passenger transport by air, hospital and medical services, passenger transport by road, pharmaceutical products, motor cars and vehicle spare parts, maintenance and repair of personal transport equipment, hairdressing salons and personal grooming establishments, miscellaneous services relating to the geographical area, paramedical services, as well as shoes and other footwear.

Furthermore, the state profiles on inflation revealed that Zamfara (17.69%), Sokoto (16.99%) and Ebonyi (16.91%) states recorded the highest inflation rates; while Lagos (11.96%), Abuja (11.84%) and Cross River (10.50%) states recorded the slowest rises in headline inflation on an annual comparison.

However, the annual rise in food inflation was highly felt across Edo (21.65%), Zamfara (20.88%) and Kogi (20.58%) states, as the brunt was mildly seen in Lagos (14.57%), Ogun (14.47%) and Ondo (14.23%) states within the last twelve months. The month on month data across the states profile revealed Kwara (3.88%), Edo (3.81%) and Sokoto (3.65%) states witnessed the highest surge in food prices on a monthly comparison, while Oyo (0.57%) Jigawa (0.54%) and Taraba (0.29%) states experienced the slowest price increases in food inflation under 30 days.

An upshot from the above is that as Nigeria’s economy grapples for recovery and growth in the closing months of the year, the inflation rate is projected to average 14.5 per cent by the close of the year on the back of covid-19 pandemic, the fluctuating oil prices, the weakening of the naira’s purchasing power and the anticipated relative growth of the economy as the statistics office is set to release the official output (GDP) result next week.

Share on Facebook Tweet Email
PreviousArtificial Intelligence Will Change How We Think About Leadership
NextNigerian entrepreneurs to benefit from WorldRemit’s Africa programme

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Lions’ Den 2021: An opportunity for promising Nigerian entrepreneurs
  • Nigeria bourse in red as selloffs in banking, consumer goods stocks see bears return  
  • African Alliance paid N967m in claims in first 40 days of 2021, MD reveals
  • REA delivers 100kW hybrid solar mini grid to Edo community
  • Unilever Nigeria to complete tea business separation by end of 2021

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Empower NSC as regulator, says maritime experts, amid foreign surcharge on Nigerian importers

Frontpage August 20, 2020

1
2

Afreximbank calls for improved market information to expand Africa’s intra-regional trade

Frontpage May 30, 2018

3

NIPC tracked $9.29bn investment in three months

Frontpage October 11, 2019

4

Barclays Africa to split into four units in growth strategy amid expansion to other countries

Frontpage April 9, 2018

5

Telcos to Banks: Pay USSD debt or be disconnected

Frontpage November 28, 2019

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.