The National Bureau of Statistics (NBS) released its Consumer Price Index report for Nigeria this week, putting inflation at 20.52% for August 2022. The department also added that food inflation rose to 23.12% from 22.02% last time. Meanwhile, core inflation he accelerated to 17.2%.
The country’s rising inflation rate, which continues to erode the nation’s purchasing power, has been attributed to rising food prices across the country amid sustained surges in energy and transportation costs. What is causing is the inflation of imported food.
Similarly, the exchange rate at the widows of official investors and exporters remained stable despite highs, closing at N436.25/$1 on Friday 16 September 2022. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) said Nigeria’s crude oil production fell to an average of 972,000 barrels per day.
Nairametrics has compiled a list of notable economic items that have made headlines in breaking news.
Inflation hits 15-year high of 20.52%
Inflation in Nigeria surged to 20.52% in August 2022 from a record 19.64% the previous month, marking the highest level since September 2005 and the highest in 15 years. According to the National Bureau of Statistics (NBS), his two components of the CPI also accelerated in the review month.
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- Food inflation rose to 23.12% in August 2022, up 1.1 percentage points from 22.02% the previous month. On a month-to-month basis, food inflation stood at 1.98% in July, down 0.07% from 2.04% the previous month.
- Similarly, “all items except agricultural” or core inflation, which excludes fluctuating agricultural prices, was 17.20% y/y in August 2022. This is an increase of 0.94% compared to 16.26% recorded in July 2022.
- The increase in the food index is due to higher prices of bread and cereals, foodstuffs, potatoes, yams and other tubers, fish, meat, oils and fats.
- Meanwhile, the biggest gains in non-food commodities were recorded in prices for gas, liquid and solid fuels, passenger transport by road, passenger transport by air, fuels and lubricants for personal transport equipment, cleaning, repairs and rentals. . of clothes.
Imported food inflation rises to 5-year high of 17.94%
Nigeria’s imported food inflation rate rose to a five-year high of 17.94% in August 2022, rising consistently over the past three months. This is an analysis by Nairalytics, the research arm of Nairametrics, from data tracked from the National Bureau of Statistics (NBS).
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- This article highlights the impact of food imports on food inflation in Nigeria. Notably, in the first half of this year, Nigeria imported agricultural products worth N907.8 billion against an export value of N343.4 billion, representing an agricultural trade deficit of N564.4 billion.
- The war between Ukraine and Russia, which broke out in February 2022, has significantly increased the prices of food items such as wheat. Note that Nigeria is a major importer of durum wheat.
- Nigeria is a large consumer of wheat products, with domestic production accounting for only 1% of its annual consumption of 5-6 million tons, and relies on imports to meet domestic demand.
- The lack of domestic production of key food commodities, or the inability to meet local demand, has ensured that the global food crisis has permeated the economies of the African giants, and other underlying downturns have eroded people’s incomes. It is eroding the value even more.
Local currencies still plummeting – I&E Window/Black market
The Naira to US dollar exchange rate closed at N436.25/$1 at the official window on Friday 16 September 2022, compared to N436.33/$1 recorded at the close of the previous week.
- Last week’s official market traded $413.81 million, compared to $348.48 million last week.
- On the black market, the naira closed at N705/$1 against the US dollar on Friday. This represents an uptick from her N708/$1 recorded the previous week. Despite the positive recorded on the black market, the exchange rate fell to N713.49/$1 in the peer-to-peer cryptocurrency market from the previous week’s recorded N706/$1.
- Foreign exchange reserves also fell to $38.69 billion from $38.92 billion the week before.
Nigerian oil producer received N377.9 billion in the first half of 2022
Nigeria’s eight oil-producing states received a total of N377.93 billion in 13% oil derivative funds in the first half of 2022. This is according to data compiled by Nirametrics, the research arm of Nirametrics, from reports published by the National Agency. Statistics (NBS).
- The states are Abia, Akwaibom, Bayelsa, Delta, Ed, Imo, Ondo and Rivers. The amount received in the review period is 46.9% higher than his N257.2 billion distributed in the second half of 2021 and a 97.4% increase when compared to the corresponding period in 2021 (N191.4 billion).
- The amount shared in the first six months of 2022 has reached 84.2% of the total N448.67 billion shared throughout 2021.
- A further breakdown of the data shows that Delta State received the largest share during the period, accounting for 30.4% of the total amount shared by the eight states. Looking at the year-on-year comparison, Edo Prefecture received the largest influx, increasing by 160.5% year-on-year.
Oil production falls to 972,000 barrels per day
Nigeria’s crude oil production in August 2022 will fall to an average of 972,000 barrels per day from the previous month’s record of 1.08mbd, lagging behind the likes of Algeria and Angola.
This is according to data released by the Organization of Petroleum Producing Countries. Crude oil production also fell to 1.1mbpd in the review month from his 1.16mbpd recorded the previous month, according to data from secondary sources.
According to OPEC, total OPEC-13 crude oil production in August 2022 averaged 29.65 mb/d, up 618 tb/d from the previous month. Crude oil production increased mainly in Libya and Saudi Arabia, while production in Nigeria fell.