The Organised Personal Sector has stated that the consecutive month-to-month drop within the price of inflation in Nigeria contradicts the present financial realities throughout the nation.
On Monday the Nationwide Bureau of Statistics in its Shopper Worth Index report said that “In August 2024, the headline inflation price additional eased to 32.15 per cent relative to the July 2024 headline inflation price of 33.40 per cent.
“Trying on the motion, the August 2024 headline inflation price confirmed a lower of 1.25 proportion factors when in comparison with the July 2024 headline inflation price.”
The NBS stated Nigeria’s inflation price dropped in July and witnessed one other decline in August this 12 months, a growth which the OPS described as odd contemplating the excessive price of commodities nationwide, and the hike in petrol costs.
The President of the Nigerian Affiliation of Chambers of Commerce, Trade, Mines, and Agriculture, Dele Oye, stated the report by the bureau claiming a decline in Nigeria’s headline inflation price to 32.15 per cent in August 2024 was extremely questionable and doesn’t mirror the financial realities skilled by companies and customers throughout the nation within the completely different sectors.
He stated, “Because the umbrella physique representing the Nigerian personal sector of all of the chambers of commerce, NACCIMA finds the NBS figures to be grossly at odds with the escalating price of residing and doing enterprise that our members and most of the people are grappling with day by day.
“Opposite to the NBS claims, the costs of products and companies haven’t solely doubled however in lots of instances tripled, pushed primarily by the astronomical improve in the price of petroleum merchandise, a key enter for transportation, logistics, and manufacturing throughout varied industries.
“The Nigeria Nationwide Petroleum Firm Restricted’s admission that it is going to be promoting petrol lifted from the Dangote refinery at over N1,000 per liter within the far north is a transparent testomony to the extreme provide shortages and skyrocketing gas costs out there.”
In response to him, the skyrocketing gas costs have led to a domino impact, with transport fares, in addition to the costs of meals, manufactured items, and different commodities, spiraling uncontrolled.
He added, “If we relate this to the report the place petrol was scarce and most of the people had to purchase gas from non-conventional sources (black market), over and above NNPC present elevated official costs, the impact on August inflation should be larger than as presently projected by the NBS.
“Furthermore, the Central Financial institution of Nigeria’s sustained financial tightening measures, poor administration of the naira, together with hikes within the Financial Coverage Charge, have did not curb the inflationary pressures dealing with the financial system.
“The truth that inflation has continued to say no for 2 consecutive months, as claimed by the NBS, additional calls into query the credibility and accuracy of their knowledge assortment and reporting strategies.”
The NACCIMA boss asserted that the affiliation believes that the NBS figures don’t mirror the cruel financial realities on the bottom and urges the company to revisit its knowledge gathering and evaluation processes to offer a extra dependable and consultant evaluation of the nation’s true inflation scenario.
He stated, “Because the voice of the Nigerian personal sector, we name on the federal government to urgently deal with the underlying structural and supply-side points driving the hovering inflation, moderately than counting on questionable statistics that don’t align with the lived experiences of companies and residents.
“Solely by way of a complete, evidence-based method to tackling inflation can we restore confidence within the financial system and create an enabling surroundings for companies to thrive.”
On his half, the Nationwide President of the Affiliation of Small Enterprise House owners of Nigeria, Dr Femi Egbesola, stated the reported lower in inflation charges was certainly the direct reverse of the realities within the financial system.
He stated, “Costs of products and commodities maintain climbing up and one other huge push of inflation this time once more is the incidental improve in petrol pump value. One begins to marvel the place this reported lower within the inflation price is coming from.
“As predicted by the World Financial institution, rate of interest hikes won’t and haven’t managed inflation in Nigeria. Additionally, the aggressive rate of interest squeeze will additional depress the financial system.”
However the President of the Lagos Chamber of Commerce and Trade, Gabriel Idahosa, stated the inflation price figures had been inside expectation as PMS charges had solely skyrocketed in September.
“A small decline is starting to point out as a result of we’re virtually reaching the height of inflation in Nigeria. We’re slowly coming down,” he stated.
The LCCI president famous that “The value vary (of PMS) we’re seeing now from N900 to N1,000 was not predominant in August.”
Idahosa said that it was tough to anticipate that the decline of inflation that began in August will proceed for the second half of 2024, given an evaluation of the basic drivers of Nigeria’s inflation, together with petroleum, alternate price, and meals amongst others.
“It’s tough to anticipate that the decline of inflation that began in August will occur for the second half of this 12 months. However we now have to take a look at the basic drivers of inflation.
“One is oil, two is the alternate price, and three is meals, availability, and driving. Out of these three variables, the alternate price has moved just a little bit. All items in Nigeria had been already being tried in that vary of N2,000, N3,000, and so on,” he said.