Nigeria’s inflation rate has decelerated for two consecutive months, from 34.19% in June to 33.40% in July, and now 32.15% in August, the National Bureau of Statistics (NBS) said Monday.

According to the Consumer Price Index report released by the Bureau, the headline inflation rate eased to 32.15% in August 2024, while food inflation stood at 37.52% in the same month.

“Looking at the movement, the August 2024 headline inflation rate showed a decrease of 1.25% points when compared to the July 2024 headline inflation rate,” the NBS stated.

“However, on a year-on-year basis, the headline inflation rate was 6.35% points higher compared to the rate recorded in August 2023 (25.80%).

“On a month-on-month basis, the headline inflation rate in August 2024 was 2.22%, which was 0.06% lower than the rate recorded in August 2024 (2.28%). This means that in August 2024, the rate of increase in the average price level is lower than the rate of increase in the average price level in July 2024.”

The NBS said food inflation rate in August 2024 was 37.52% on a year-on-year basis, which was 8.18% points higher compared to the rate recorded in August 2023 (29.34%).

It said the rise in food inflation on a year-on-year basis was caused by increases in prices of the following items, bread, maize, grains, guinea corn, bread, cereals yam, Irish potatoes, water yam, cassava tuber, palm oil, vegetable oil, among others.

On a month-on-month basis, the food inflation rate in August 2024 was 2.37% which showed a 0.10% decrease compared to the rate recorded in July 2024 (2.47%).

The NBS said the fall could be attributed to the decline in the rate of increase in the average prices of Tobacco, Tea, Coco, Coffee, Groundnut Oil, Milk, Yam, Irish Potatoes, Water Yam, Cassava Tuber, Palm Oil, Vegetable etc.

In August 2024, food inflation on a Year-on-Year basis was highest in Sokoto (46.98%), Gombe (43.25%), and Yobe (43.21%) while Benue (32.33%), Rivers (33.01%) and Bayelsa (33.36%), recorded the slowest rise in Food inflation on Year-on-Year basis.

On a Month -on-Month basis, however, August 2024 Food inflation was highest in Adamawa (5.46%), Kebbi (4.48%), and Borno (3.88%), while Ogun (0.08%), Akwa-Ibom (0.45%) and Sokoto (1.00%) recorded the slowest rise in Food inflation on Month-on-Month basis.

FMDQ FX Spot and Derivatives markets recorded a total turnover of $1,208.23 million for the week ended September 13, 2024.

The figure represents an increase of 12.2 per cent ($131.18 million) from $1,077.05 million reported for the week ended September 6, 2024.

According to the exchange, the week-on-week (WoW) increase in total turnover was solely driven by the 12.7 per cent ($136.48 million) increase in FX Spot turnover, which recorded a total value of $1,208.23 million, compared to $1,071.75 million recorded in the week ended September 6, 2024, offsetting the 100 per cent ($5.30 million) decrease in FX derivatives turnover.

It pointed out that the WoW decrease in FX derivatives turnover was solely driven by the 100.00 per cent ($5.30 million) decrease in FX forwards turnover, coupled with the ongoing lack of activity in both the exchange-traded FX futures and cleared naira-settled non-deliverable forwards markets.

Also, for the week ended September 13, 2024, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) was $/N1,623.99, compared to $/N1,608.85 recorded in the week ended September 6, 2024.

Recall that FMDQ FX Spot and Derivatives markets turnover hit $1,077.05 million during the week ended September 6, 2024, representing an increase of 37.8 per cent ($295.59 million) from $781.46 million recorded for the week ended August 30, 2024.

According to FMDQ Securities Exchange, the week-on-week (WoW) increase in total turnover was jointly driven by the 37.4 per cent ($291.79 million) increase in FX Spot turnover, which recorded a total value of $1,071.75 million, compared to $779.96 million recorded in the week ended August 30, 2024, and the 253.3 per cent ($3.80 million) increase in FX Derivatives turnover.

The exchange stated that the WoW increase in FX derivatives turnover was solely driven by the 253.3 per cent ($3.80 million) increase in FX Forwards turnover, whilst there was a continued lack of activity in both the exchange-traded FX futures and cleared naira-settled non-deliverable forwards markets.

Also, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) was $/N1,608.85, compared to $/N1,600.71 recorded in the week ended August 30, 2024.
 Meanwhile, the domestic bond market witnessed robust activity last week, highlighted by the successful launch of the government’s inaugural dollar-denominated bond.

This five-year bond, issued by the Debt Management Office (DMO) to raise $500 million for the 2024 fiscal deficit, was met with strong demand, and oversubscribed by $400 million.

The bond sale is expected to provide a much-needed boost to foreign exchange inflows and help address short-term supply-demand imbalances in the market.

The National Pension Commission (PenCom) said a total of N336.25 million has been recovered from 35 defaulting employers across sectors of the economy.

The commission revealed in its 2024 second-quarter report displayed on its website, saying the amount comprises N125.57 million in unpaid principal contributions and N210.68 million in penalties.

The report also explained that from the inception of the commission’s recovery initiative in June 2012 through June 30, 2024, a total of N27.97 billion has also been recovered from non-compliant employers.

This figure includes N13.6 million in outstanding pension contributions and N14.17 million in penalties, all collected from employers who failed to meet their pension obligations.

The commission said that its Secretariat and Legal Advisory Services Department have been tasked with initiating legal action against three of the defaulting employers.

“PenCom continues to engage 25 Recovery Agents (RAs) to recover unremitted pension contributions and associated penalties from defaulting employers,” the report stated.

According to the report, the commission received five requests for refund of pension contributions to Military Personnel and other Security Agencies of which all five requests were processed, and the sum of N0.39 million was refunded to the affected personnel during the quarter.

“The refund was attributed to the exemption of the Military and other Security Service Agencies from the Contributory Pension Scheme due to the nature of their jobs,” the Commission said.

The report noted that during the quarter under review, the Commission had processed and issued a total of 13,047 PCCs to organizations that met the requirements, and the sum of N143.13bn was remitted into the Retirement Savings Accounts (RSAs) of 188,426 employees of the 13,047 organizations issued PCCs.

Nigerians’s quest to purchase cheaper Premium Motor Spirit (PMS)may be realised after all as facts emerged that Dangote petrol may sell for N857 to N865 per litre.

Already, the Nigerian National Petroleum Corporation Limited (NNPCL) will start lifting the product from Dangote Refinery today barring any unforeseen circumstances after NNPCLagreed to lift petrol product at N960/N980 per litre and sell to marketers at N840/N850 even though it is unclear if uniform product prices would apply at filling stations nationwide

Chief Corporate Communications Officer, NNPC Ltd., Olufemi Soneye, who confirmed the readiness of the company to start lifting petrol today, told Sunday Vanguard, yesterday: “NNPC Ltd has started deploying our trucks and vessels to the Dangote Refinery to lift PMS in preparation for the scheduled lifting date of September 15th, as set by the refinery.

“Our trucks and personnel are already on-site, ready to begin lifting. We expect more trucks, and the deployment will continue throughout the weekend so we can start loading as soon as the refinery begins operations on September 15, 2024.”

Soneye hinted that at least 100 trucks had already arrived at the refinery for the petrol lifting, adding that the number of trucks could increase to 300 by Saturday evening.

On his part, Executive Secretary, of Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole, said: “We have been lifting diesel (AGO) and aviation fuel (jet fuel) and we look forward to lifting petrol (PMS).”

“We await clarity in respect of the pricing mode, and once that is clarified, we’ll do the needful towards meeting the energy needs of Nigerians.”

Edun, the Minister of Finance and Coordinating Minister of the Economy, yesterday, said the structuring of the NNPCL, Dangote Refinery deal in Naira would assist in reducing pressure on the local currency.

A statement by the Director of information and Public Relations in the ministry, Mohammed Manga, stated: “In a landmark move towards reducing pressure on the Naira, eliminating unnecessary transaction costs, and improving availability of petroleum products, the Federal Government has successfully initiated the sale of crude to local refineries as well as corresponding purchase of petroleum products in Naira.

“The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, disclosed this today in his office in Abuja shortly after the Technical Sub-Committee meeting on the sale of crude oil to local refineries in Naira.

“Represented by the Executive Chairman, Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, the Minister announced the completion of all agreements and modalities for the implementation of the Federal Executive Council (FEC) approval on the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.

The Federal Government has signed the Cape Town Convention (CTC) Practice Directions to reduce the cost of airline operations in Nigeria’s aviation sector.

The signing took place during a stakeholders’ meeting of the Presidential Enabling Business Environment Council (PEBEC), chaired by Vice-President Kashim Shettima at the Presidential Villa, Abuja.

Chief Judge of the Federal High Court, Justice John Tsoho, signed the CTC practice direction, which aimed to promote and preserve the nation’s airlines industry
Shettima commended Justice Tsoho for his role in addressing the issue and signing the document.

The Vice-President assured airline operators that President Bola Tinubu’s administration was committed to protecting and promoting the Nigerian airline industry.

He praised the Minister of Finance, Wale Edun, for addressing the issues affecting airline operators.

Edun promised to meet with stakeholders to perfect the agreements reached during the meeting.
He described the signing as an action to revolutionise the airline industry, reducing costs and facilitating growth.

Airline operators, including Allen Ikechukwu Onyema, CEO of Air Peace, expressed appreciation for the President’s efforts to enhance the aviation sector.

Special Adviser to the President on PEBEC, Dr Jumoke Oduwole, noted that the signing would help reduce insurance costs and improve the business environment.

Minister of Aviation, Festus Keyamo, represented by Dr Anastasia Gbem, said the signing aligned with the Ministry’s goal of enhancing local airlines’ capacity.

“Investors can bring their aircraft into Nigeria and if there is any problem, such aircraft would be recovered within the 10-day period that Nigeria and the Cape Town Convention have provided.

“So, it is an unprecedented history made today and it is a venture that will boost the Nigerian airlines and the entire aviation industry,” said the Minister.

The Chief Executive Officer of the National Insurance Commission, Olusegun Omoseye, described the signing as significant progress for Nigeria’s aviation sector and economy.

Dangote Refinery has confirmed that its President, Aliko Dangote, has agreed to the Federal Government’s proposal to conduct crude oil transactions in naira, despite the potential for financial losses.

Dangote stated, “I understand that I will incur losses, as by the time we sell the products and convert the earnings to dollars, the exchange rate may have worsened.

“He added, “However, I am willing to accept this loss for the sake of the country.

The nation is in a difficult situation, and someone must take certain risks.

I am prepared to bear the loss, no matter how significant it may be.

“This follows President Bola Tinubu’s directive to the Nigerian National Petroleum Company Limited (NNPCL) to sell crude to Dangote Refinery in the local currency.