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Business News

Nigeria’s inflation rate rises to 17.33% in February 2021, highest in four years

Nigeria’s inflation rate rose to 17.33% in February 2021, from 16.47% recorded in the previous month.

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Despite billions on agriculture, food inflation up by 108% since 2015.

Nigeria’s inflation rate rose to 17.33% in February 2021, from 16.47% recorded in the previous month. This represents the highest inflation rate recorded in four years.

This is according to the latest inflation report published by the National Bureau of Statistics (NBS).

The last time Nigeria recorded an inflation rate this high was in February 2017, when it declined to 17.78% from 18.72%.

On a month-on-month basis, the Headline index increased by 1.54% in February 2021, this is 0.05% point higher than the rate recorded in January 2021 (1.49%).

Food inflation

The closely watched index rose to 21.79% in February 2021 compared to 20.57% recorded in January 2021.

  • On a month-on-month basis, the food sub-index increased by 1.89% in February 2021, up by 0.06% points from 1.83 percent recorded in January 2021.
  • This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Food products n.e.c, Fruits, Vegetables, Fish and Oils, and fats.

READ: Nigeria’s unemployment rate jumps to 33.3% as at Q4 2020

Core inflation

The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 12.38% in February 2021, up by 0.53% when compared with 11.85% recorded in January 2021.

  • On a month-on-month basis, the core sub-index increased by 1.21% in February 2021. This was down by 0.05% when compared with 1.26% recorded in January 2021.
  • The highest increases were recorded in prices of Passenger transport by air, Medical services, Miscellaneous services relating to the dwelling, Hospital services, Passenger transport by road.
  • It also includes Pharmaceutical products, Paramedical services, Repair of furniture, Vehicle spare parts, maintenance and repair of personal transport equipment, Motor cars, Dental services and Hairdressing salons, and personal grooming establishment.

The urban inflation rate, however, increased by 17.92% (year-on-year) in February 2021 from 17.03% recorded in January 2021, while the rural inflation rate increased by 16.77% in February 2021 from 15.92% in January 2021.

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Worst hit states

In February 2021, all items inflation on year on year basis was highest in Kogi (24.73%), Bauchi (22.92%), and Ebonyi (20.45%), while Enugu (14.73%), Kwara (14.25%), and Cross River (12.97%) recorded the slowest rise in headline Year on Year inflation.

  • Meanwhile, in terms of food inflation, Kogi State also led the list at 30.47%, followed by Ebonyi State (25.73%), Sokoto (25.68%), Ekiti (23.82%), and Ogun (23.32%).
  • On the other hand, Akwa Ibom recorded the lowest food inflation in the review period at 18.7%, closely followed by Bauchi State at 18.74%, Gomber State (19.32%), Abuja (19.63%), and Abia (19.65%).

What this means

The persistent rise in the consumer price index indicates that Nigerians are spending more thereby reducing the purchasing power of an average consumer.

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The inflationary pressure was compounded in 2020 as a result of the covid-19 pandemic, which crippled the supply chain and halted business activities in most aspects of the economy.

Increased inflation rate and a further increase in the country’s unemployment rate at 33.3% is a major cause for worry as to the direction the Nigerian economy is taking.

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Business News

Cost of preparing jollof rice in Nigeria rises by 7.8% in Q1 2021 – SBM

The average cost of making a pot of jollof rice in Nigeria rose by 7.8% between March 2020 and March 2021.

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SBM Jollof Index

The average cost of making a pot of jollof rice in Nigeria rose by 7.8% between March 2020 and March 2021. This is contained in the SBM Jollof index report for Q1 2021, published by SB Morgen.

According to the report, the increase was caused by the prolonged border closure, increased energy tariffs, exchange rate volatility, coronavirus pandemic, and the restrictions of forex for the importation of items, largely due to falling oil prices.

It also identified the effect of the #EndSARS protest against brutality and the response of the government, which brought the main economic states in Nigeria (Lagos and Abuja) to a standstill for major parts of the month of October 2020.

Highlights

  • Specifically, the average cost of making a pot of jollof rice in Nigeria increased from N7,167 recorded in Q4 2020 to N7400 in the first quarter of 2021. representing a 3.24% quarter-on-quarter increase.
  • The cost of making a pot of rice is most costly in Wuse and least costly at Awka. The report, however, suggests that the disparity could be a result of operational costs rather than the actual cost of commodities.
  • While it is possible for people in Awka to substitute buying some of the commodities with products from their subsistence agriculture, the same is not possible in Wuse, largely because of its very urban nature.
  • The high exchange rate of N410/$1 to N475/$1 in the parallel market also adversely affected the price of jollof rice in the country as tomato puree, rice, turkey, and seasoning are affected by the exchange rates.
  • Also, flooding destroyed several hectares of rice farms across the country. The report stated that up to 500,000 hectares of rice farms were destroyed in Kebbi State alone.
  • The price of turkey has increased as a result of increased electricity tariffs which has forced increases in cold room costs.

According to the SBM Jollof report, “Our interviews with traders shows that transportation costs have not reduced since they were increased during the introduction of the COVID-19 protocols. One of the traders stated that she pays almost twice her former transportation cost prior to COVID-19, and the prices have not gone down even after drivers began to carry more passengers than permitted by the social distancing protocol.”

Jollof costliest to cook in Wuse, Abuja

In Abuja, food production is mainly undertaken by its neighbouring states Benue, Kaduna, Kogi and Niger, all of which have seen several attacks in the past few years, showing a decline in that dimension.

  • The report revealed that the cost of making a pot of jollof rice is highest in Wuse, Abuja.
  • Although food distribution has not been affected and unemployment rates are over 40%, but being the administrative headquarters of the government and most international NGOs, outreaches and food distribution are common.

“In all the states surveyed, out of a score of 50, the combined score ranged from 18-27 which shows a general decline in entitlements across the states and similar levels of severity. While Bauchi has a higher chance at getting food insecure, the other states are slightly above the borderline, showing medium decline in their entitlement (ability to get food).”

What you should know

According to the report, in all the markets surveyed, the cost of making a pot of jollof rice increased in Awka, Calabar Municipal Market, Mbakpa, Onitsha, Port Harcourt and Trade Fair, while Balogun, Bauchi, Bodija, Dugbe, Kano, Nyanya and Wuse experienced a slight decrease.

  • The South-South and South-East states experienced an increase in the cost of making Jollof rice, Northern states experienced a price reduction.
  • The price decrease was attributed to the harvest period which usually forces prices of some commodities like onions and tomatoes down.
  • It however suggested that this decrease may have failed to happen in the Southern part of the country because of the cost of transporting the goods down south and because of the price surge introduced by the food blockade.

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Corporate Press Releases

CWG Plc gets ISO 27001 and ISO 22301 certifications

CWG also passed the ISO 9001 in Quality Management System recertification audit, which was issued by the SON.

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CWG Plc, CWG confirms loss to inferno 

The leading technology solutions provider in West Africa, CWG Plc, has been issued both the ISO 27001 in Information Security Management System and ISO 22301 in Business Continuity Management System certifications.

According to CWG’s Head of Quality Assurance and Business Intelligence, Bunmi Adewunmi, ‘In addition to receiving these certifications, CWG also passed the ISO 9001 in Quality Management System recertification audit, which was issued by the Standard Organization Nigeria (SON).

“We are thrilled that CWG Plc has been awarded the globally acclaimed and coveted ISO 27001 and ISO 22301 certifications in recognition of our dedication towards quality and commitment to the highest level of information and data security management systems,” Adewunmi said in a statement.

The statement added that these certifications reflect CWG’s efficiency and determination in providing impeccable services, which has established the ICT company in four African countries as a world-class brand.

While assuring that CWG Plc will continue to offer high-quality services using international standards the Pan-African ICT company believes that its enthusiasm for developing long-term initiatives is growing and performance at all levels improving too.

Both ISO 27001 and ISO 22301 certifications are internationally recognized standards that define a framework for how modern organizations should manage information and data, as well as the policies and procedures that govern information risk management processes.

The certificates were issued to CWG by Canadian based PECB MS, a global provider of audit and certification services that offer its expertise on multiple fields, including but not limited to Information Security, Quality Management, Business Continuity, Service Management, Health, Safety and Environmental Management. said after an annual surveillance audits, it found CWG Plc to be in accordance with the management system requirements in ISO 22301.

“We hereby certify that the management system of CWG Plc has been assessed and found to be in accordance with the management system requirements in ISO/IEC 27001 and ISO 22301,” the certificates show.

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The scope of the certifications includes Human Resources and General Services, Finance and Accounts, Treasury, Software Development, Internal IT Services, Procurement/Logistics, Internal Control, Corporate Development/Quality Assurance & Metrics, Business Development/Product Management, Data Center & DR Sites, Corporate Finance, Brand and Marketing Communications, Legal, ATM Support Operations.

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