Economy

Inflation rises to 12.34% in April, says NBS

Nigeria’s GDP decreases by –6.10% in Q2 2020 — NBS
Written by Maritime First

…As FG begins sale of N150bn sovereign Sukuk at 11.2%***

The National Bureau of Statistics (NBS) says the Consumer Price Index (CPI), which measures inflation, increased by 12.34 per cent year-on-year in April 2020.

The NBS made this known in its latest CPI and Inflation Report for the month of April released on Thursday.

It stated that this figure showed 0.08 per cent points higher than the rate recorded in March 2020 which was 12.26 percent.

It explained that month-on-month basis, the headline index increased by 1.02 per cent in April 2020 and this was 0.18 per cent rate higher than the rate recorded in March 2020 which was 0.84 per cent.

According to the bureau, the composite food index rose by 15.03 per cent in April 2020 compared to 14.98 per cent in March.

“This rise in the food index was caused by increases in prices of potatoes, yam and other tubers as well as bread and cereals, fish, oils and fats, meat, fruits and vegetables.

“On month-month basis the food sub-index increased by 1.18 per cent in April, up by 0.24 per cent points from 0.94 per cent recorded in March.

“The average annual rate of change of the food sub-index for the 12-month period ending April this year.

“Over the previous 12 months average was 14.22 per cent and 0.11 per cent points from the average annual rate of change recorded in March which was 14.11 per cent,” the NBS explained.

Also read:  NBS: 83m Nigerians are poor

In another development, the Federal Government on Thursday began the sale of its third tranche 7-year N150 billion Sovereign Sukuk, the Debt Management Office (DMO) said.

The offer circular, which was obtained from its website, said the seven year Islamic Sukuk, referred to as Ijarah, was at a rental rate of 11.2 per cent and would be due in June 2027.

The bond, which was aimed at funding key road infrastructure across the six geo-political zones, was payable semi-annually.

Subscription for the bond,  guaranteed by the government, would close on June 2.

The circular said subscribers could purchase N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter with First Bank and Islamic wealth manager, Lotus Capital managing the sale.

The DMO said it qualified as securities in which trustees could invest under the Trustee Investment Act and as government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds, amongst other investors.

It would also be listed on the Nigerian Stock Exchange (NSE) and on FMDQ Over-The-Counter (OTC) platform and be classified as liquid asset by the Central Bank of Nigeria (CBN).

It is also certified by the Financial Regulatory Advisory Council of Experts (FRACE) of the CBN, the circular said.

The News Agency of Nigeria (NAN) recalls that the Federal Government had in 2017 raised a N100 billion seven-year debut Sukuk bond for the financing of 25 road projects across the six geopolitical zones of the country.

It raised another N100 billion in 2018 for a seven-year period for the same purpose, making it N200 billion raised so far for the Sukuk bonds.

 

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Maritime First