The report that Nigeria’s Inflation hit a new high of 20.77 per cent in September as food supply, foreign exchange crisis, and increases in import costs worsened, dominates the headlines of Nigerian newspapers on Tuesday.
The Punch reports that Nigeria’s Inflation hit a new high of 20.77 per cent in September as food supply, foreign exchange crisis, and increases in import costs worsened, according to the National Bureau of Statistics.
In August, the nation’s inflation rose to 17 year high of 20.52 per cent which has now been broken by September’s figure.
The statistics body disclosed this in its ‘Consumer Price Index’ report which was released on Monday. It listed the likely factors for the increase in inflation year-on-year as the disruption in the supply of food products, increase in import cost due to the persistent currency depreciation, and general increase in the cost of production.
It said, “Likely factors responsible for the decline in the monthly inflation rate (Month-on-month basis).
“Over the past two months, there has been a decline in headline inflation on a month-on-month basis due to a decline in the changes in the food index relative to the reference month index which is due to the present harvest season.
“Likely factors responsible for the increase in annual inflation rate (year-on-year basis). Disruption in the supply of food products
“Increase in import cost due to the persistent currency depreciation. General increase in the cost of production.”
The NBS further said, “In September 2022, on a year–on- year basis, the headline inflation rate was 20.77 per cent. This was 4.14 per cent points higher compared to the rate recorded in September 2021, which was (16.63 per cent).
“This indicates that in the month of September 2022 the general price level was 4.14 per cent higher relative to September 2021. On a month-on-month basis, the Headline inflation rate in September 2022 was 1.36 per cent, this was 0.41 per cent lower than the rate recorded in August 2022 (1.77 per cent).”
The newspaper says that the Nigeria Liquefied and Natural Gas company has declared force majeure because of widespread flooding that has disrupted supply, a spokesman for the company said on Monday.
Force majeure is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic or sudden legal changes prevents one or both parties from fulfilling their obligations under the contract.
Reuters reported that the declaration could worsen Nigeria’s cash crunch and would curtail global gas supply as Europe and others struggle to replace Russian exports due to the invasion of Ukraine in February.
NLNG said all of its upstream gas suppliers had declared force majeure, forcing it to make the declaration as well.
“The notice by the gas suppliers was a result of high floodwater levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG,” spokesperson Andy Odeh said.
Odeh said NLNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure.
Flooding in Nigeria has killed more than 600 people, displaced 1.4 million and destroyed roads and farmland.
Officials have warned that the flooding, caused by unusually heavy rains and the release of water from a dam in Cameroon, could continue into November.
NLNG’s supply had already been limited due to prolific oil theft that has slashed output from what is typically Africa’s largest exporter. NLNG had exported roughly 18 cargoes in September, according to Refinitiv data.
The Guardian reports that to improve earnings from non-oil export, the Nigerian Government and local manufacturers are exploring sustainable incentives to encourage non-oil exporters for improved productivity and export.
Indeed, the Federal Ministry of Industry, Trade and Investment has assured manufacturers and exporters of the federal government’s resolve to make foreign exchange available for businesses in the country.
The Minister of Industry, Trade and Investment, Niyi Adebayo, said courtesy of the recent efforts put together by economic managers to address insecurity in the country, in the next few months there would be enough foreign exchange to go around for the business community.
The Minister stated this at the 5th yearly meeting of the Manufacturers Association of Nigeria Export Promotion Group (MANEG) in Lagos
In his words: “We believe that with the steps that have been taken lately with the result and with the results that are being achieved, I do not doubt that within the next few months foreign exchange supply would increase and will improve and there will be more money to go around.”
He noted that the theme of the event tagged “Non-Oil Export Incentives in Nigeria – Effectiveness and Sustainability” is apt, saying that Nigeria now more than ever needs to support exports.
The newspaper says that the Minister of State for Mines and Steel Development, Gbemisola Saraki, has stated that gemstones worth $3 billion are exported yearly from Nigeria but with low-revenue benefit returns.
Saraki disclosed this in Abuja, at the graduation ceremony of the second batch of the master Gemstone, Jewellery making and design training.
She said the ministry would transform Nigeria from the consumer of foreign jewellery products to high-quality local jewellery producers to save the country of huge foreign exchange expended on jewellery imports.
She explained that Nigeria with it large population has a huge, insatiable appetite for jewellery and that it is imperative to create a local industry that would substantially meet local demand and create jobs.
“It is also a known fact that Nigeria is abundantly blessed with several varieties of mineral resources. Among the minerals identified are varieties of precious and semi-precious gemstones.
“Some of the most popular Nigerian gemstones include Sapphire, Aquamarine, Beryl, Emerald, Tourmaline, Ruby, Garnet, Amethyst and Zircon, which are located across the Country. But, sadly, they are illegally exported out of the country in raw forms.
“We all know that the value of a gemstone increases when it is cut and polished, however, the majority of gemstones mined in Nigeria are being exported without any value addition since the technical know-how and machinery required in cutting, polishing and finishing jewelry are generally lacking in the country.”
The Director of Artisanal and Small-Scale Mining, Patrick Ojeka, urged graduates of the programme to show determination in the skills they acquired for the development of the downstream sector.
GIK/APA