Nigeria’s inflation rate rose year on year from 11.44% as at the end of 2018 to 11.98% by December 2019. This was disclosed in the latest inflation report released by the National Bureau of Statistics (NBS).
According to the NBS report, month on month, inflation rose by 11.98% in December, higher than the rate (11.85%) recorded in November 2019 and 11.61% in October. The inflation rate in Nigeria rose for the 4th consecutive month as the spiral effect of border closure continues to drag on the economy.
Food inflation, a closely watched component of the inflation index, rose by 14.67% in December 2019 compared to 14.48% recorded in November 2019. According to the NBS, the rise in the food index was caused by increases in prices of Bread and cereals, Meat, Fish, Oils and fats, Potatoes, yam and other tubers.
On a month-on-month basis, the food sub-index rose by 0.97% in December 2019, down by 0.28% points from 1.25% recorded in November 2019. The average annual rate of change of the Food sub-index for the twelve-month period ending December 2019 was 13.74% from November 2019 (13.65%).
On the other hand, Core inflation (All items less farm produce), which excludes the prices of volatile agricultural produce also rose 9.33% in December 2019, up by 0.34% when compared with 8.99% recorded in November 2019.
On a month-on-month basis, the core sub-index increased by 0.81% in December 2019. This was up by 0.02% when compared with 0.79% recorded in November 2019.
Also, the average 12-month annual rate of change of the index was 9.15% for the twelve-month period ending December 2019; this is 0.04 percent points lower than 9.19 percent recorded in November 2019.
Rural and Urban Inflation
Similarly, the urban inflation rate increased by 12.62% (year-on-year) in December 2019 from 12.47% recorded in November 2019, while the rural inflation rate increased by 11.41% in December 2019 from 11.30% in November 2019.
On a month-on-month basis, the urban index rose by 0.90% in December 2019, down from 1.07 percent recorded in the previous month, while the rural index also rose by 0.82% in December 2019, down from 0.98 recorded in November 2019.
Inflation spikes on border closure and demand pressure
According to the Bureau, core inflation was triggered by increases in prices of Hospital services, Hairdressing salons and personal grooming establishment, Garments, Repair and hire of footwear, Vehicle spare parts, Passenger transport by air, Shoes and other footwear, Appliances, articles and products for personal care, Clothing materials, other articles of clothing and clothing accessories and Cleaning, Repair and hire of clothing.
- Meanwhile, the rise in December may not come as a surprise as Nigerians continue to grapple with the effects of the border closure.
- Also, the surge in the demand for household items during the Christmas festivity must have piled up pressures on prices. Towards the year-end, Nigerians typically spend on household items such as food, fashion and gift items.
- Nairametrics had earlier reported that an up thick in inflation is still expected through 2019 on the backdrop of border closure and seasonality.
- Meanwhile, the latest increase in the inflation rate means the purchasing power of consumers and investors’ returns continue to worsen in the country.
- Most investors aim to increase their long-term purchasing power. However, Inflation puts this goal at risk because returns on investment must first keep up with the rate of inflation in order to increase real purchasing power.
- For instance, the rate of interest on most fixed income securities remains the same until maturity, hence, the purchasing power of the interest payments declines as inflation rises.
Just in: Lagos to reopen schools on August 3
The governor said that the resumption is only for pupils and students in graduating classes.
The Lagos State Governor, Babajide Sanwo-Olu has announced that both public and private schools will resume on August 3, 2020, after over 3 months of being shut down due to the coronavirus pandemic.
This is in line with the recent pronouncement by the Federal Government,
This was disclosed by the Governor while giving a situation report on COVID-19 at Lagos House Marina on July 3, 2020.
The governor said that the resumption is only for pupils and students in graduating classes, that is Primary 6, JSS 3, and SSS 3 who are preparing for exams.
He said other schools will remain closed and should continue with the online studies.
FAAN releases new guidelines for post COVID-19 flight operations
The new set of procedural guidelines for air travelers and other airport users is aimed at protecting all.
The Federal Airports Authority of Nigerian (FAAN), has released a new set of procedural guidelines for air travelers and other airport users. This follows the announcement of the Federal Government, the gradual commencement of domestic flight operations at the nation’s airports with effect from July 8, 2020.
This new Standard Operating Procedure (SOP) is aimed at protecting all stakeholders and preventing further spread of the coronavirus disease, especially through our airports.
This was disclosed in a press statement by FAAN on Friday, July 3, 2020, and signed by the agency’s General Manager Corporate Affairs, Henrietta Yakubu.
According to the procedures that have been outlined by FAAN in the “New Normal”, departing passengers must comply with the following guidelines;
- All passengers must arrive at the airport properly kitted with their face masks on.
- They must also ensure a minimum of one point five meters (1.5m) physical distancing, Aviation Medical/Port Health personnel would screen each passenger and ensure the use of face masks, those traveling with pets must get necessary clearance from Nigerian Agricultural Quarantine Services.
- All passengers’ luggage would be disinfected before entry into the departure halls.
- Passengers are required to wash their hands as often as possible, hand sanitizer would be provided for passengers before entrance, at the waiting halls/lounges and pre-boarding gates.
- All footwear would be disinfected/sanitized by foot mats placed at all entrances to the terminal building, amongst others.
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For arriving passengers, the following guidelines must be adhered to;
- On disembarking from the aircraft, passengers would observe physical distancing as they board the Co-Buses (Hand Sanitizer would be provided in the buses).
- Physical distancing protocols must be observed at the baggage claim area, where hand sanitizer is also provided, disinfected trolleys would be made available for passengers.
- All Covid-19 protocols must be observed while undergoing customs check, Passengers would exit the halls and head straight to the car park for pick up.
- If you must speak to anyone around, please speak to a properly tagged Aviation Security (AVSEC) officer, physical distancing would be maintained while waiting to be screened by personnel of port health services, amongst others.
- In addition to the above guidelines, passengers are required to observe social distancing and make use of the floor markings at the security screening area. They must also comply with all other security guidelines as laid down by officials of the Aviation Security (AVSEC) department.
FAAN asked all passengers and stakeholders to observe these new protocols that have been put in place for their protection.
First Bank’s FMAP graduates inuagural set of management associates
FMAP is a comprehensive developmental programme targeted at young, dynamic, highly driven individuals.
First Bank of Nigeria Limited, Nigeria’s leading financial inclusion services provider, has graduated 28 successful candidates in its inaugural FirstBank Management Associates Programme (FMAP), virtually held on Tuesday, 30 June 2020 via the Zoom video-conferencing application. The programme which commenced in 2018 had a total of 48 candidates selected from thousands of entries and applications received nationwide.
FMAP is a 24-month fast-track comprehensive developmental programme targeted at young, dynamic, self-motivated and highly driven individuals that possess the right skill set and excellent leadership potential among Junior and entry-level cadre staff. Entries and applications for the programme enrolment was also extended to the public
Speaking about the programme, Dr. Adesola Adeduntan, CEO, FirstBank said “It is an intensive skill development programme structured to enhance acute thinking, financial, methodical skills of staff. The bank would continue to reinvest in its human capital to create a kind of leadership needed for future growth and development.”
“This is part of the Bank’s strategic objectives of infusing and developing leadership at requisite levels across its staff hierarchy, aimed at building the next generation of leaders who will be groomed to drive the Bank’s vision of being Africa’s Bank of first choice,” he concluded.
At the end of the programme, successful candidates are moved to middle management, becoming Management Associates irrespective of their grades at the point of entry.
Cross country postings and secondment opportunities are also offered to such staff to provide them with global exposure and network.
First Bank of Nigeria Limited (FirstBank) is the premier Bank in West Africa and the leading financial inclusion services provider in Nigeria for over 125 years.
With over 750 business locations and over 57,000 Banking Agents spread across 99% of the 774 Local Government Areas in Nigeria, FirstBank provides a comprehensive range of retail and corporate financial services to serve its over 15 million customers. The Bank has international presence through its subsidiaries, FBN Bank (UK) Limited in London and Paris, FBNBank in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal, as well as a Representative Office in Beijing.
The Bank has been nimble at promoting digital payment in the country and has issued over 10million cards, the first bank to achieve such milestone in the country. FirstBank’s cashless transaction drive extends to having more than 9million people on its USSD Quick Banking service through the nationally renowned *894# Banking code and over 3 million people on FirstMobile platform.
Since its establishment in 1894, FirstBank has consistently built relationships with customers focusing on the fundamentals of good corporate governance, strong liquidity, optimised risk management and leadership. Over the years, the Bank has led the financing of private investment in infrastructure development in the Nigerian economy by playing key roles in the Federal Government’s privatisation and commercialisation schemes. With its global reach, FirstBank provides prospective investors wishing to explore the vast business opportunities that are available in Nigeria, an internationally competitive world-class brand and a credible financial partner.
FirstBank has been named “Most Valuable Bank Brand in Nigeria” six times in a row (2011 – 2016) by the globally renowned “The Banker Magazine” of the Financial Times Group; “Best Retail Bank in Nigeria” for seven consecutive years (2011 – 2017) by the Asian Banker International Excellence in Retail Financial Services Awards and “Best Bank in Nigeria” by Global Finance for 15 years. Our brand purpose is to always put customers, partners and stakeholders at the heart of our business, even as we standardise customer experience and excellence in financial solutions across sub-Saharan Africa, in consonance with our brand vision “To be the partner of first choice in building your future”. Our brand promise is to always deliver the ultimate “gold standard” of value and excellence. This commitment is anchored on our inherent values of passion, partnership and people, to position You First in every respect.
Group Head, Marketing & Corporate Communications