Nigeria’s Inflation Now 16.47% as Food Index Hits 20.57%
Published Dipo Olowookere By Dipo Olowookere Things are not getting better in Nigeria and the latest figures from the National Bureau of Statistics (NBS) on the consumer price index, (CPI), which measures inflation, confirms this.On Tuesday morning, the stats agency in Nigeria revealed that inflation increased year-on-year in January 2021 by 16.47 per cent, 0.71 per cent higher than the 15.75 per cent recorded in December 2020.Business Post reports that the inflation, rather than moderating after the federal government ordered the reopening of four of the land borders, is rising.All the land borders were closed in August 2019, putting pressure on the supply of food in the country because some food items could not come into the nation.
This was made worse because the local capacity could not cater to the demand and security issues in the northern part of the country, where most of the food items are grown, significantly cut supply.In the report released today, the NBS said on a month-on-month basis, the headline index jumped by 1.49 per cent in January 2021 compared with 1.61 per cent in December 2020.According to the agency, the percentage change in the average composite CPI for the 12 months period ending January 2021 over the average of the CPI for the previous 12 months period was 13.62 per cent as against 13.25 per cent in December 2020.It was further disclosed that last month, the urban inflation rate increased by 17.03 per cent year-on-year in contrast to 16.33 per cent a month earlier, while the rural inflation rate rose by 15.92 per cent in January 2021 from 15.20 per cent in December 2020.
The NBS data also stated that in January 2021, all items inflation on a year-on-year basis was highest in Kogi at 21.38 per cent, Oyo at 20.17 per cent and Bauchi at 19.52 per cent, while Kwara at 13.96 per cent, Abuja at 12.96 per cent and Cross River at 12.22 per cent recorded the slowest rise in headline year-on-year inflation.Business Post reports that in the period under consideration, the composite food index rose by 20.57 per cent versus 19.56 per cent in December 2020.This spike in the food inflation was attributed to increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetable, fish and oils and fats.The data revealed that the food inflation on a year-on-year basis was highest in Kogi at 26.64 per cent, Oyo at 23.69 per cent and Rivers State at 23.49 per cent, while Ondo at 17.20 per cent, Abuja at 16.73 per cent and Bauchi at 16.37 per cent recorded the slowest rise.Post Views: 50
Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories.At his leisure time, he watches football and supports 3SC of Ibadan.
Mr Olowookere can be reached via [email protected] Continue Reading Nigeria Trades N24bn Cashew Annually
Published Rahma Ahmed By Rahma Ahmed The National Cashew Association of Nigeria (NCAN) on Monday revealed that the country produces 120,000 tonnes of cashew annually.
This was stated by the National President of the association, Mr Ojo Ajanaku, at a workshop on cashew apple processing held in Auchi, Edo State.Mr Ajanaku said, “Nigeria is the 6th largest producer of cashew in the world with an annual production of about 120,000 tonnes and a total annual trade worth of N24 billion.” “We are glad to witness the prosperity of cashew farmers in Nigeria.“This shows that NCAN is working and in collaboration with government and our development partners.“The current global market trends show an increasing and strong demand for cashew and Nigeria will continue to deliver its quota and remain relevant in the cashew world,” he said.Also speaking, Mrs Millicent Oare, the resource person who spoke on the value chain of cashew apple processing, described the cashew tree as a complete tree with several economic importance.
“Lack of knowledge and skills in the processing and marketing of cashew apple products are challenges in Nigeria,” she said.Earlier, the Edo chairman of NCAN, Mr Osas Ojeikere, said that cashew was produced in commercial quantity in 21 states of the Federation.“Nigeria cashew industry is the most reliable and credible supplier and exporter of high-quality cashew products.“Therefore, all hands must be on deck to harness the potential of cashew in the agricultural sector,” he said.
The News Agency of Nigeria (NAN) reported that the workshop was in collaboration with the Federal Ministry of Industry, Trade and Investment.Post Views: 16 Brass Plant: FG Aims to be Biggest Methanol Producer
Published Adedapo Adesanya By Adedapo Adesanya The federal government has set its sight on becoming one of the top-10 producers of methanol in the world.This was made known by the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote.The NCDMB chief said the 3.5 million tonnes per year methanol production plant in Brass, Bayelsa State, when completed, will place the country in the world’s map as one of the top producers of methanol.
Business Post had reported that the Final Investment Decision for the project, which is being undertaken by Brass Fertiliser and Petrochemical Company Limited in partnership with NCDMB, NNPC, DSV and others, was taken in Abuja recently.The $3.5 billion project, which is the first in Nigeria and largest in Africa, is expected to create 30,000 jobs during the construction phase and 5,000 jobs during operations and would be funded by loans from China Exim Bank, AfDB, among other creditors.Mr Wabote has explained that the Brass methanol project would provide an opportunity for diversification of gas utilization, as well as job creation for Nigerians.Mr Wabote said local content can only grow sustainably when there are oil and gas projects, as megaprojects like the Brass methanol plant provides opportunities to utilize local capacities and capabilities built over the years.
He emphasised the significance of two Federal Government’s agencies – NCDMB and NNPC in catalysing investments in the country.According to him, “Also critical is the fact that the project provides further opportunity to diversify the utilization of our gas resources by opening up a new frontier in local methanol production.“Upon completion, the 10,000 tonnes per day or 3.5 million tonnes per year methanol plant will bring Nigeria into the world map as one of the top-10 producers of methanol.
“The opportunities provided by this project in jobs creation, gas utilization, local availability of methanol for primary and secondary users, amongst other reasons form the basis of our decision to partner with Brass Fertiliser and Petrochemicals Company Ltd to enhance the delivery of the project.” Post Views: 21 Local Currency Staggers to N409.67/$1 at I&E Despite Decline in FX Demand
Published Adedapo Adesanya By Ahmed Rahma, Adedapo Adesanya The woes of the local currency at the Investors and Exporters (I&E) window of the foreign exchange market continued on Monday as it depreciated heavily against the US Dollar.At the market segment, the Naira lost N5 or 1.24 per cent against the greenback yesterday to trade at N409.67/$1 in contrast to N404.67/$1 it was traded last Friday.According to data harvested by Business Post from the FMDQ Securities Exchange, the value of the domestic currency was badly disfigured by the Dollar despite a significant decline in FX demand.During the trading session, the turnover reduced by 70.8 per cent or $68.29 million to $28.21 million from $68.29 million of the preceding session.But at the black market, the Naira closed flat territory against the American currency to settle at N473/$1 and also traded flat against the Euro at the same market window to sell at N570/€1.
However, the Nigerian currency depreciated against the British Pound Sterling at the parallel market on Monday by N2 to quote at N652/£1 in contrast to the previous N650/£1.At the interbank window, the Central Bank of Nigeria (CBN) maintained its Naira/Dollar auction rate to commercial banks yesterday at N379/$1.The local currency also remained unchanged against the greenback at the Bureaux De Change (BDC) segment of the forex market at N395/$1.Meanwhile, at the cryptocurrency market, all the seven key tokens tracked by Business Post on a popular trading platform, Quidax, maintained the bull run.The Bitcoin (BTC) appreciated by 2.2 per cent to trade at N23,300,015.95; Ethereum gained 3.3 per cent to sell at N870,000, while Dash (DASH) surged by 9.7 per cent to sell at N124,000.
Also, Litecoin (LTC) grew by 8.9 per cent to trade at N103,001.01; Ripple (XRP) recorded a 7.4 per cent jump to trade at N272.29, Tron (TRX) improved by 5.3 per cent to N26.18, while the US Dollar Tether (USDT) went up by 2.5 per cent to sell for N480.85.Post Views: 53 NSE Slices Share Price of Vitafoam Nigeria by 70 Kobo
Published Dipo Olowookere By Dipo Olowookere The share price of one of the publicly listed companies, Vitafoam Nigeria Plc, has been slashed by the Nigerian Stock Exchange (NSE).The action, which is actually a price adjustment, was taken as a result of the dividend proposed by the board of the organisation.The company’s leadership has recommended the payment of a cash reward to shareholders and they will get 70 kobo for each of the firm’s equities in their portfolios.
The dividend, which is higher than the 42 kobo per share of the previous year, would be paid after the shareholders approve it at the forthcoming virtual Annual General Meeting slated for March 4, 2021.The qualification date for the cash reward for the financial year ended September 30, 2020, was last Friday, which caused the price adjustment yesterday.At the stock market last Friday, the price of the company’s stock closed at N9.30 per unit and at the start of trading on Monday, the value was reduced to N8.60 per unit to reflect the 70 kobo dividend deducted from its share price.The exchange also sent a notice to stockbrokers yesterday to notify them of the change in the price of Vitafoam.“The equity price of Vitafoam Nigeria Plc was adjusted [on] February 15, 2021, for a dividend of 70 kobo as recommended by the company’s board of directors.
“The last close price was N9.30, while the ex-div price is N8.60,” the disclosure from the NSE read.
Business Post reports that at the market on Monday, the value of Vitafoam shares closed flat at N8.60 per unit, with a total of 211,138 units worth N1.7 million transacted by investors.In the past one year, the equity price has traded as low as N3.61 each and as high as N10.05 each.In the 2020 fiscal year, the firm had a good performance despite the impacts of COVID-19 pandemic on its operating environment and earnings.Vitafoam grew its turnover last year by 5.2 per cent to N23.4 billion from N22.3 billion, while gross profit appreciated by 25.7 per cent to N11.0 billion from N8.8 billion, with the pre-tax jumping by 61.5 per cent to N5.6 billion from N3.5 billion.Post Views: 80 Stocks Gain N70bn on Positive Investor Sentiment
Published Dipo Olowookere By Dipo Olowookere It was a positive start for Nigerian stocks on Monday as they appreciated by 0.37 per cent after enduring a string of losses in the past trading sessions.
The Nigerian Stock Exchange (NSE) recorded this growth on the back of renewed bargain hunting in value equities as well as positive investor sentiment.This reflected in the market breadth, which had 31 price gainers and 13 price losers.According to the price movement chart, Seplat was the best-performing stock as it appreciated by 10 per cent to close at N544.50 per unit.Japaul improved by 9.86 per cent to trade at 78 kobo per share, Mutual Benefits Assurance gained 9.52 per cent to sell for 46 kobo per unit, AIICO Insurance grew by 9.26 per cent to settle at N1.18 per share, while Multiverse rose by 9.09 per cent to quote at 24 kobo per unit.For the worst-performing stocks on Monday, Royal Exchange and Conoil topped the table with a 10 per cent decline each to quote at 27 kobo per share and N18.90 per unit respectively.
RT Briscoe depreciated by 9.09 per cent to trade at 20 kobo per share, CHI lost 8.70 per cent to finish at 42 kobo per unit, while Sovereign Trust Insurance fell by 7.69 per cent to 24 kobo per share.Analysis of the performance of the sectors of the market indicated that only the consumer goods counter recorded a loss as it deflated by 0.03 per cent.The energy space gained 5.35 per cent, the banking sector appreciated by 1.81 per cent, the insurance industry improved by 1.38 per cent, while the industrial goods index chalked up 0.35 per cent.
Business Post reports that when trading activities were paused for the day at 2:30 pm, the All-Share Index (ASI) increased by 133.46 points to 40,573.31 points from 40,439.85 points, while the market capitalisation expanded by N70 billion to N21.226 trillion from N21.156 trillion.It was keenly observed that despite the growth achieved by the market yesterday, the level of activity reduced as investors traded 206.2 million stocks worth N2.2 billion in 4,264 deals compared with the 395.6 million equities worth N5.2 billion transacted last Friday in 5,321 deals.This signified that the trading volume slipped by 47.87 per cent, the trading value decreased by 58.31 per cent and the number of deals dropped 19.86 per cent.Zenith Bank dominated the activity chart for trading 21.5 million shares valued at N539.6 million, with Mutual Benefits Assurance trailing after selling 15.0 million units for N6.8 million.
UAC Property transacted 14.8 million stocks worth N12.1 million, Fidelity Bank exchanged 14.7 million shares for N35.9 million, while United Capital exchanged 13.1 million equities valued at N77.8 million.Post Views: 54.
