Nigeria’s inflation may hit 30% by December, says Stears

PLACE YOUR ADVERT HERE

The data issued on Friday by Stears, Nigeria’s headline inflation rate increased for the sixth consecutive month, which may raise to 30 per cent by December 2023.

The firm stated that its forecasts are based on trusted econometric tools that consider a myriad of factors driving inflation, from general to country-specific dynamics.

The data-driven insights provider announced this while unveiling its Pan-African inflation forecasts.

It projected that Nigeria’s annual inflation rate is set to climb steadily until ending of the year, culminating at around 30 per cent, a level not attained since the country’s modern democratic era.

Stears’ Head of Insights, Fadekemi Abiru in a statement said, “In September, we saw the exchange rate premium—the differential between official and parallel rates—rise to 25.2 per cent, which is a significant increase from what it was in August.

“We expect this gap to keep widening and exerting further inflationary pressures unless we see significant dollar inflows into the economy. We have also had heavy and prolonged rainy season, which has affected harvests. Following the recent release of Nigeria’s September 2023 inflation data, the country’s forecasts have been prioritised, with Kenya’s projections scheduled for early November and forecasts for other African nations coming in early 2024.”

Recall that the World Bank, earlier projected that the removal of fuel subsidy and devaluation and unification of the exchange rate system will continue to increase the inflationary pressure in the country in the near term and erode the purchasing power of the average Nigerian.

Africa Pulse recent report shows that, the World Bank noted, “The incoming Tinubu administration implemented a series of reforms that included the removal of fuel subsidies and the devaluation and unification of the exchange rate system.

“Petroleum prices have more than tripled since the subsidies were lifted at the end of May. The naira has weakened by nearly 40 percent against the US dollar since the mid-June devaluation. Although these measures are intended to improve the fiscal and external accounts of the nation, their inflationary effects in the near term can erode the purchasing power of households and weigh on economic activity.”

PLACE YOUR ADVERT HERE
Queen Ferry
Queen Ferry
Chinyere Treasure Ikechukwu also known as Queen Ferry, is a Nigerian business Executive, social media savvy Journalist and Content Editor with over seven years experience. She serves as the Vice-Chairman of Naijatraffic Limited. If Treasure is not researching/blogging, she will be making delicious delicacy.

Popular Related

SEC to unveil plans for capital market

The Director General of the Securities and Exchange Commission (SEC), Emomotimi Agama is set to outline the vision for the Nigerian capital market at...

World bank reaffirms commitment to improving Nigeria’s water sector

The World Bank has committed to supporting Nigeria's water, sanitation, and hygiene sector going forward. During a visit with Prof. Joseph Utsev, the Minister of...

Lagos mandates tax clearance for housing transactions

The Lagos State Government has mandated that tax clearance will now be an essential document for any housing transactions within the state to prevent...

Food prices will crash soon, FG declares

The Federal Government officially unveiled that high food prices currently burdening the nation would soon crash based on its commitment to ensure food security...

Top 10 Rapidly Growing Sub-Sectors in Nigeria’s Economy for Q1 2024

Nigeria's gross domestic product (GDP) grew by 2.98% in the first quarter (Q1) of 2024, up from 2.31% in the same period in 2023. However,...

Palm oil not good for lubricant production – Oilden CEO

Oluwatoni Oladiran, the Chief Executive Officer of Oilden Energies, has warned against the use of palm oil as a base oil for the production...

Builder’s reject N8,000 cement price

Developers in the built industry have turn down the agreement  between the Federal Government and the Cement Manufacturers. It was fix at the meeting that...

FG suspends mining activities at OAU, environs

Dr Dele Alake, the Minister of Solid Minerals Development, has directed an indefinite suspension of mining activities at the Obafemi Awolowo University, Obafemi Awolowo...

Binance halts naira services amid regulatory concerns

Crypto exchange, Binance, has disclosed that it will cease services supporting naira on its platform. Wakadaily learnt that Binance, which had been accused of manipulating...

FG to continue electricity subsidy to ease burden on Nigerians – NERC

The Chairman of Nigerian Electricity Regulatory Commission (NERC), Mr Sanusi Garba, says the Federal Government will continue to subsidise electricity to ease the burden...