Nigeria’s economy unravels at worst time ahead elections

Aliko Dangote, chairman and chief executive of Dangote Group, Nigeria’s largest company, warned last week of an impending food scarcity by June as the adverse consequences of the Russian-Ukraine war shake Nigeria’s fragile economy.

Trade deficit jumps 986% as imports hit N20.8trn

Nigeria’s foreign trade deficit widened to a record N1.94 trillion in 2021 as the cost of importing commodities exceeded the value of the country’s exports, official data released on Tuesday show. This is 986 percent wider than a deficit of N178.2 billion recorded in 2020

Nigeria facing unprecedented budget shortfall, says EIU

Analysts at the Economist Intelligence Unit (EIU) have said Nigeria’s fiscal situation will worsen considerably this year under the weight of soaring energy prices, which should otherwise have been a blessing, with budget deficit rising to six per cent of gross domestic product (GDP) and inflation surging past 16 per cent.

Local inputs, others seen driving down FMCG firms’ costs

As companies in Nigeria’s fast-moving consumer goods (FCMG) sector are facing up to rising costs, experts have highlighted the need for operators to source inputs locally and redesign their product portfolios, among other measures, to reduce expenses.

Aviation fuel: Pipeline idle for 30 years could ease scarcity

The pipeline meant to transport aviation fuel to the Lagos local airport but which has been sitting idle for 30 years should be repaired to ease fuel supply to airlines, industry stakeholders have said.

South Africa, India, EU, US reach compromise on COVID vaccine IP waiver

The long push for manufacturers to lift intellectual property rights on COVID-19 vaccine production appears to be making headway with the United States, European Union, India and South Africa reaching a consensus on key terms of the agreement

Russia, Ukraine close to agreeing some deals – Sergei Lavrov

Sergei Lavrov, Russian Foreign Minister said on Wednesday that some formulations for agreements with Ukraine were close to being agreed upon, with neutral status for Kiev being considered “seriously.

Nigeria will use Eurobond cash to fund 2022 petrol subsidy- Minister of finance

Nigeria’s minister of finance Zainab Ahmed has announced plans to fund its 2022 petrol subsidy bill from more local borrowing and a $2.2 billion account raised from a Eurobond sale last year. The country’s rising fiscal deficit makes a mockery of the government’s continued petrol subsidy regime that gulps over a trillion..

Headline Inflation Increases by 15.70% YoY in February 2022 as Food Inflation Rises by 17.11%

In February 2022, the consumer price index, (CPI) which measures inflation increased to 15.70 percent on a year-on-year basis. This is 1.63 percent points lower compared to the rate recorded in February 2021 (17.33) percent. This means that the headline inflation rate slowed down in February when compared to the same month in the previous year.

 Increases were recorded in all COICOP divisions that yielded the Headline index.

 On a month-on-month basis, the Headline index increased to 1.63 percent in February 2022, this is 0.16 percent rate higher than the rate recorded in January 2022 (1.47) percent.

 The percentage change in the average composite CPI for the twelve months period ending February 2022 over the average of the CPI for the previous twelve months period was 16.73 percent, showing 0.14 percent point from 16.87 percent recorded in January 2022.

 The urban inflation rate increased to 16.25 percent (year-on-year) in February 2022 from 17.92 percent recorded in February 2021, while the rural inflation rate increased to 15.18 percent in February 2022 from 16.77 percent in February 2021.

 On a month-on-month basis, the urban index rose to 1.65 percent in February 2022, up by 0.12 the rate recorded in January 2022 (1.53) percent, while the rural index also rose to 1.61 percent in February 2022, up by 0.19 the rate that was recorded in January 2022 (1.42) percent.

 The twelve-month year-on-year average percentage change for the urban index is 17.29 percent in February 2022. This is lower than 17.44 percent reported in January 2022, while the corresponding rural inflation rate in February 2022 is 16.18 percent which is lower to 16.31 percent recorded in January 2022.

 

War-Fueled Surge in Food Prices to Hit Poorer Nations Hardest

Global food prices are poised to keep climbing even after jumping to a record in February, placing the heaviest burden on vulnerable populations while adding to headwinds for the global economic recovery.

Food commodity prices rose 23.1 percent last year, the fastest pace in more than a decade, according to inflation-adjusted figures from the United Nations Food and Agriculture Organization. February’s reading was the highest since 1961 for the gauge tracking prices for meat, dairy, cereals, oils, and sugar.

Now, the war in Ukraine and sanctions on Russia are upending shipments and possibly production for two of the world’s largest agricultural producers. The two countries account for nearly 30 percent of world wheat exports and 18 percent of corn, most of which is shipped through Black Sea ports that are now closed. Wheat futures traded in Chicago, the global benchmark, recently rose to a record.