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Inflation rate driven by transport cost, says finance minister

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The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has said the inflation rate in Nigeria is largely driven by the cost of transportation.

The country has seen an increase in transport costs in recent months largely on the back of the hikes in the pump price of petrol, used by many commercial transporters to power their vehicles.

In what is the latest in a series of petrol price hikes since July, fuel marketers on Friday raised the pump price of the product following an increase in the ex-depot price.

Ahmed, who spoke on Friday at a virtual consultation and stakeholder engagement to discuss the economic and fiscal policy drivers underpinning the Finance Bill 2020, said the draft bill sought to reduce transportation cost in the country.

The average transport fare paid by commuters for bus journey within a city increased by 12.70 per cent month-on-month and 48.02 per cent year-on-year to N278.88 in August, the latest data from the National Bureau of Statistics showed.

Ahmed said the bill contained ‘some interesting new proposals,’ citing ‘fiscal relief for mass transit…which is designed to provide support to mass transit by reviewing the duties regime’ as an example.

The minister said, “The essence why this is being done is we recognise transportation as one of the major cost drivers in the economy.

“If you look at the rate at which our inflation is going, and you disaggregate the components, you will find that inflation is largely driven by transport cost.

“So, the essence here is to reduce transportation cost so that businesses will have ease and pass benefits to eventual consumers.”

The nation’s inflation rate rose to 13.71 per cent in September from 13.22 per cent a month earlier, according to the NBS.

Analysts at Financial Derivatives Company Limited, led by foremost economist Bismarck Rewane, said last week that headline inflation was projected to rise to 14.5 per cent in October from 13.71 per cent in September.

“This means that inflation will be rising for the 14th consecutive month. It would also be the highest level in 33 months. Food inflation will be the most affected as it is estimated to climb to 17.05 per cent. Other sub-indices are also expected to move in the same direction,” they said.

The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, said recently that the rising inflation in the country and the contraction of the economy had created a dilemma for policymaking and foreboded the need to strengthen the productive base of the economy.

-Punch

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Nigeria’s inflation records first drop in 20 months, now 18.12%

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Nigeria’s inflation rate dropped to 18.12 per cent in April this year from 18.17 per cent recorded in March, the first decline in headline inflation in 20 months.
This is contained in the latest consumer price index report just released by the National Bureau of Statistics.
The last time the consumer price index which measures the rate of change in the price of goods and services dropped was in 2019 when it slowed from 11.08 per cent in July to 11.02 in August.
The NBS, which announced this on Monday, stated that the food inflation also reduced to 22.75 per cent in April from 22.95 in March.
“The urban inflation rate increased by 18.68 per cent (year-on-year) in April 2021, down by 0.61 the rate recorded in March 2021(1.60), while the rural index also rose by 0.95 per cent in April, down by 0.57, the rate recorded in March 2021 (1.52 per cent),” the report said.
It also stated, “The rise in food index was caused by increase in prices of Coffee, tea, coca, bread and cereals, soft drinks, milk, cheese and eggs, vegetables, meat, oils and fish and potato, yam and other tubers.
“On a month-on-month basis, the food sub index increased by 0.99 percent in April 2021, down by 0.91 percent points from 1.90 percent recorded in March 2021.”
The report noted that food inflation on a year-on-year basis in April was highest in Kogi at (30.52 per cent), Ebonyi (28.07 per cent), Sokoto (26.09 per cent), while Abuja (18.63 per cent), Akwa-Ibom (18.51 per cent), and Bauch (17.64 per cent) recorded the slowest rise in year-on-year inflation.
“On a month-on-month basis, however, April 2021 was highest in Kebbi (2.46 per cent), Ekiti (2.42 per cent), and Kano (2.17 percent) while Abuja (0.05 per cent) recorded the slowest rise in the month-on-month food inflation with Rivers and Ogun recording price deflation or negative inflation.”

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FG to launch maritime security strategy next month

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The Federal Government will launch a maritime security strategy next month to address challenges in the sector, Minister of Transportation, Rotimi Amaechi has said.
He stated this in Abuja on Monday while playing host to the Belgium Ambassador to Nigeria, Daniel Bertrand, who paid him a courtesy visit in his office.
Amaechi said, “The crisis in the maritime sector is insecurity and it is more complex than the world knows, but the Federal Government has come up with a solution and it is ready to take off. The Navy, Police, Army and State Security Service are involved.”
A statement by Anastasia Ogbonna, Acting Director (Press and Public Relations), Ministry of Transportation, quoted the minister as saying that if successful, maritime insecurity would be addressed while noting that countries in the Gulf of Guinea may elect to adopt it.
He said, “Sixty-five per cent or 75 per cent of crime comes from our waters and if we are able to eliminate it, then we will be making a lot of progress.
“If you are on air, you will see what is happening in the water. If you are inside the waters, you will be able to respond. A helicopter has the capacity to drop in the naval men when they see anything suspicious.”
He added that the partner would be willing to compare notes with anyone who wanted information for the purpose of securing the Gulf of Guinea.
Ambassador Bertrand had earlier presented a letter to the minister requesting the support of the Nigerian government for the Belgium candidate for the position at the International Maritime Organization.
He also promised his country’s readiness to support the implementation of maritime security in the Gulf of Guinea.

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Limit your speed to 30km/h, FRSC tells all motorists

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FRSC Corps Marshal, Boboye Oyeyemi

As Nigeria joins the rest of the world to mark the 6th United Nations Global Road Safety Week, the Federal Road Safety Corps has asked motorists to limit their speed to 30 kilometres per hour in urban or built-up areas for all categories of vehicles.
The global safety week will be celebrated between Monday May 17 and Sunday May 23, 2021.
The Bauchi Sector Commander, FRSC, Mr Yusuf Abdullahi, made the recommendation on Monday in a statement issued by the FRSC Public Relations Officer in the state, Mr Rilwanu Suleimanu.
The corps said speeding was responsible for about 30 per cent of crashes in Nigeria.
Abdullahi explained that the corps would be using the 6th United Nations Global Road Safety Week to carry out an advocacy programme where people would be educated on the issue.
He said, “The 6th UN Global Road Safety Week will focus on the issue of speed.
“The week advocates for safer streets motoring by making 30 km/h speed limits, the norm for cities worldwide in places where people mix with traffic.
“The week is concerned about policy commitments at national and local levels to deliver the 30 km/h speed limits in urban areas and to generate local support for such low speed measures in order to create safe, healthy traffic flow within Urban cities globally.
“As a lead agency in road safety management and administration in Nigeria, the FRSC is hosting the event and embarking on nationwide advocacy to replicate this global activity in selected Nigerian Cities.
“Pursuant to this, the Bauchi State command of the FRSC organises public education campaign programmes to inculcate the norm of 30km/hr speed limits among road users.”
He called on the general motoring public to always adhere to the maximum legal speed limit while in the city or in built up areas so as to prevent crashes, its attendant injuries as well as its fatalities.
Abdullahi, who further stressed the need to avoid speeding, considered among the critical traffic violations with high risk factor, said speeding would lead to increase in crash severity, resulting in more fatalities or injuries.
The sector commander explained that more damage would be caused to vehicles involved in speeding when they crashed, thereby increasing the likelihood of such vehicles not drivable thereafter.
“Speeding also leads to extra fuel consumption and frequent replacement of auto parts, among others,” he said.
The public advocacy programme would include media charts, roadshows, visits to hospitals, and advocacy visits to stakeholders, including policymakers and others.

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