Governor, Central Bank of Nigeria Mr. Godwin Emefiele, has said in Lagos that the current inflationary pressures in the economy is not peculiar to Nigeria.
He said the development is a global trend.
Though he agreed that it raises global concerns, Emefiele said Nigeria is doing its best under the circumstances .
He spoke at the 57th edition of the Banker’s Forum.
He said the steady increase in headline inflation from 15.60 per cent in January to 20.77 per cent in September was consistent with global trends.
The dinner had the theme, “Radical Responses to Abnormal Episodes: Time for Innovative Decision-making” was appropriate and well timed.
He also said headline inflation went up to 20.77 per cent in September, indicating eight consecutive months of uptick.
He added that the upward momentum was after a successive period of decline in 2021, due to balanced monetary policy actions.
He said upside pressure on consumer inflation re-emerged during the year, as global conditions complicated existing local imbalances to undermine price stability.
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“Food remains the major component of domestic consumer price basket. The annualised uptick in headline inflation mirrors the 6.21 percentage points upsurge in food inflation to 23.34 per cent in September.
“During this period, core inflation also resumed an upward movement from 13.87 per cent in January to 17.60 per cent.
“In addition to harsh global spill overs, exchange rate adjustments and imported inflation; inflation was also driven by local factors such as farmer herder clashes in parts of the food belt region,” he said.
Emefiele said that during the early part of 2020, the world’s economy experienced the most significant downturn last witnessed since the Great Depression following the outbreak of the COVID-19 pandemic.
He said the effect contracted global GDP by about 3.1 per cent in 2020, and commodity prices went into a state of turmoil as the price of crude oil plunged by over 70 per cent.
He said as the world struggled to recover to pre-pandemic conditions, the global economy was yet again hit by another adverse occurrence with the eruption of the Russian-Ukraine war.
He said the war, along with the sanctions placed on Russia by the US and its allies, led to a spike in crude oil prices.
He said in the attempt to contain rising inflation, advanced markets such as the US, began to increase their policy rates, which led to a tightening of global financial market conditions along with a significant outflow of funds from emerging markets.
“The subsequent strengthening of the US dollar further aggravated inflationary pressures, along with a weakening of currencies, and depletion of external reserves in many emerging market countries.
“Today close to 80 per cent of countries have reported heightened inflationary pressures due to a confluence of some of the factors mentioned above,” said Emefiele.
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He explained that central banks in emerging markets and developing economies, in a bid to contain rising inflation were also compelled to raise rates, which was expected to lead to a tapering of global growth over the next year.
“In fact, the short-term global growth projections by the IMF have been downgraded three times in 2022 and is likely to be below the 3.2 per cent and 2.7 per cent estimates for 2022 and 2023, respectively.
“Average growth among advanced economies is projected to plunge from 5.2 per cent in 2021 to 2.4 per cent in 2022 and 1.1 per cent in 2023.“Estimated output growth in emerging markets, is expected to slow from 6.6 per cent in 2021 to 3.7 per cent apiece in 2022 and 2023,” he said.
He said in view of the food, energy, and cost-of-living crises in many countries, there were growing restrictions on food exports from many countries.
“As at the last count, about 23 countries, mainly in advanced economies, according to the World Bank have banned the export of 33 food items. “Seven other countries have additionally implemented various measures to limit food exports,” said Emefiele.
On currency redesign, Emefiele said, “Analysis of the key challenges primarily indicated a significant hoarding of banknotes, as over 85 per cent of currency in circulation were held outside banking system.
“This is even as currency in circulation more than doubled from N1.46 trillion in December 2015 to N3.23 trillion in September 2022; a worrisome trend that must be curbed.”
He, therefore, said the policy would quicken the attainment of cashless economy as it was complemented by increased minting of the eNaira.
According to him, the redesigned notes will also curtail currency outside the banking system, and as the monetary policy becomes more effective, it will help rein in inflation.
CIBN president, Dr Ken Opara, commended Emefiele, saying he had during the year, continued to be purposeful in curtaining economic shocks from the aftermath of the fourth wave of the COVID-19 pandemic.
He commended him for keeping inflation and other related economy indices, especially the naira, from distortions exacerbated by declining production levels fueled by high cost of production, insecurity, dwindling government revenues, foreign exchange volatility and uncertainty in the global oil market.
Opara said, “through the careful management of the Monetary Policy Rate (MPR), the CBN continued to drive the recovery path of the Nigerian economy through the expansion of credit to the real sector, guided management of foreign reserves and promoting sound financial environment and monetary policy.”
Abuja-Kaduna train resumes to services Tuesday, says NRC
The suspended Abuja-Kaduna fast train will resume operations tomorrow, Tuesday January 31, 2023, the Nigerian Railway Corporation has said.
The train service was suspended by the NRC last week after a derailment recorded at the Kubwa Station on Friday January 27.
A statement announcing the recommencement of the train signed by the NRC Director of Operations, Niyi Alli, obtained on Monday, read, “The board and management of the Nigerian Railway Corporation is pleased to announce the recommencement of the Abuja-Kaduna Train Service which was suspended on Friday 27th January 2023 due to the derailment that occured at Kubwa Station on the same date.
“The service will resume on Tuesday 31st January 2023 with the following daily schedule; KA2 departs Rigasa at 0700; Ak1 departs Idu at 10.00; KA4 departs RIGASA at 13.00hrs; AK3 departs idu at 16.00.
“However on Wednesdays only KA2 will depart Rigasa at 0700 and and AK 4 will depart Idu at 16.00.
“The corporation once again regrets any inconvenience our esteemed passengers may have experienced as a result of the temporary suspension of the service.”
Lagos gov, FRSC boss for Nigeria Auto Awards where Chinese, popular brands will flex muscles
The Lagos State Governor, Babajide Sanwo-Olu, and the Corps Marshal of the Federal Road Safety Corps (FRSC), Dauda Biu, will be special guests at the forthcoming Nigeria auto industry award.
The award scheduled to hold at the Oriental Hotel in Victoria Island, Lagos, on February 9, 2023 will witness the emergence of the car of year (2022), outstanding pickup and best-performing truck in Nigeria, among others, where both popular brands are competing with Chinese products.
According to the organisers, Nigeria Auto Journalists Association, other stakeholders that have also indicated interest to be part of the prestigious award ceremony are Toyota Nigeria Limited (TNL), CFAO Motors, Dangote Peugeot, Kewalram Nigeria Limitedrarf, Mikano Motors and Lanre Shittu Motors.
RT Briscoe, Elizade Autoland, Jet System, Nord Motors, Autochek, GUO Transport, among others have equally confirmed their participation in the formost auto industry event in the country.
Already, finalists have been shortlisted for the auto awards, with GAC GS4, Geely Coolray and Suzuki S-Presso nominated for the ultimate car-of-the-year award category.
NAJA Auto Awards is an annual event that celebrates auto brands across the entire industry value chain in Nigeria.
According to the awards committee, dozens of distinguished automotive journalists from different mediums selected the finalists based on their evaluation of each eligible vehicle as part of their professional work.
In the Truck-of-the-Year category, the contest will involve Sinotruk by Dangote, Shacman truck by TSS and JAC truck from Lanre Shittu Motors.
Innoson, Mikano and GAC will slug it out in the Assembly Plant-of-the-Year category.
In the luxury car segment, Porsche, Mercedes and BMW models are the front runners.
Elizade Autoland (JAC), Stallion Hyundai and CFAO Motors will battle for the outstanding auto workshop honour.
In the SUV category (compact), Kia Selto, Geely Coolray and GAC GS4 have been nominated.
For Large SUV, Toyota Land Cruiser will lock horns with GAC GS8, BMW X7 and Range Rover (Autobiography).
Toyota Hilux, Mitsubishi L200 and Ford Ranger will battle for the Best Pickup award.
Lanre Shittu (JAC truck), TSS (Shacman) and Dangote Sinotruk will also battle again for the truck plant of the year award.
Giving insights into the nominees, Chairman of the 2022 Award Committee, Rasheed Bisiriyu, said all vehicles nominated in the various categories represent exceptional value and designs.
“We are using our respected, trusted platform to recognise and acknowledge best-performing brands in different segments and categories across the entire auto value chain.”
According to him, the award event, which has now become a major industry show, celebrates and rewards automotive excellence.
He also disclosed that the Managing Director of RT Briscoe, Mr Seyi Onajide, and Deputy Managing Director of CFAO Motors, Mr Kunle Jaiyesimi, would be honoured with the Auto Personality of the year in recognition of their immense contributions to the development of Nigeria’s auto industry.
In his own comment, Chairman of NAJA, Mike Ochonma, said the auto journalist body has always believed in bringing together all the stakeholders in the automotive sector to build a stronger community and strengthen consumers’ confidence and trust in the industry and their brands.
“I would like to congratulate all the nominees for the 2022 edition and look forward to their presence at the grand ceremony,” he added.
Accidents: FRSC boss recommends truck barrier on Ojuelegba Bridge, warns against ‘one-way’ driving
The Federal Road Safety Corps has recommended the construction of a truck barrier on Ojuelegba Bridge in the Surulere area of Lagos to prevent articulated vehicles especially trucks carrying containers from using the bridge and falling on other vehicles.
The FRSC Corps Marshal, Dauda Biu, made the recommendation while reacting to an accident around the bridge on Sunday in which a container-carrying truck fell on a passenger bus, killing nine people including two children.
A statement by the Corps Public Education Officer of the FRSC, Bisi Kazeem reported the corps marshal as expressing deep concerns over the fatal accident, which he noted was becoming a regular occurrence.
Biu also spoke on another accident recorded on Sunday that claimed 11 lives on Soka Bridge on the Lagos-Benin Highway and warned against excessive speeding and driving against the traffic popularly called one-way.
The statement said, “Whilst his concerns stem from the reoccurring container crashes on Ojuelegba bridge that has claimed several lives, the Corps Marshal recommends the construction of barricades against articulated vehicles (tankers, trucks, trailers and other heavy duty vehicles) on Ojuelegba Bridge as a permanent solution to the reoccurring crashes.”
The corps marshal who frowned on the incident explained the importance of barricading the bridge against articulated vehicles citing some of the dangers that come with their continuous use of the bridge as he called for efforts to be made towards expanding the connecting roads under the bridge to accommodate all articulated vehicles.
He revealed that FRSC rescue teams in collaboration with other Emergency Management Agencies had cleared obstructions from the crash scenes for ease of movement while the driver of the Mack truck had been arrested and handed over to the police for further investigation and possible prosecution.
The corps marshal also reiterated the need for the enactment of laws that will bring justice to victims of these crashes and where such laws already exist, efforts should be made to activate them so that justice will be served accordingly to both the drivers and the victims.
It stated that a preliminary investigation conducted into the fatal crashes revealed that the Ojuelegba crash involved a Mack Truck with a 40ft container with the registration number KJA 380 KD, who apart from engaging in excessive speed, also indulged in an act of wrongful overtaking and a Suzuki mini bus registered as KTU 921 YD; while the Soka avoidable menace involved a truck driven against the traffic and a Macopolo bus.
The statement said, “The container mounted on the Mack truck at Ojuelegba, according to our operatives, fell off the truck and landed on the Suzuki mini bus filled up with passengers which obviously led to the death of 9 of the passengers.
“As at the time of this statement, 11 victims were burnt beyond recognition at the Soka Bridge while the Ojuelegba crash involved 13 people comprising of nine males and four females. Out of the 13 people, nine were killed comprising five male adults, one male child, one female child and two female adults.
“Out of the four victims who survived the Ojuelegba crash, two were rescued without injuries while the remaining two sustained various degrees of injuries.
He urged the public to always use the FRSC toll free line 122 and the National Traffic Radio 107.1 FM which are always available for all road users to report emergencies at any given time.
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