Economy

Inflation may increase in the coming months — Economist

Inflation may increase in the coming months — Economist
Written by Maritime First

… As Arewa leaders in Lagos State urge members to comply, over Motorcycle ban***

Dr Aminu Usman, a lecturer at the Kaduna State University, says that Nigeria’s inflation rate will likely increase in the coming months.

Usman, a lecturer at the Department of Economics, told the newsmen that the increase may occur due to the onset of the rainy season and as food stock began to dry up.

He spoke against the backdrop of the recent Inflation Report released by the National Bureau of Statistics (NBS) for April 2022.

According to the report, the inflation rate increased to 16.82 per cent on a year-on-year basis in April 2022.

“We might see an upward movement on the inflation rate in the coming months as the rains settled and food stock begins to dry up.

“Also, excessive and uncontrolled spending by politicians prosecuting campaigns may contribute.’’

Usman explained that inflation in Nigeria had been fluctuating around the upper side of two digits depending on the time, and local and international economic conditions.

He said that a major component of the inflation was the food inflation owing to low levels of income and poverty.

“It is estimated that more than 70 per cent of the household income of the average Nigerian is spent on food alone.

“Such that any increase or decrease in general food prices would have a positive-negative impact on the rate of inflation respectively.

“We noticed that in April, the Price of local paddy rice remained stable while that of maize came down by about an average of N4,000 per bag.

“This rather sharp drop in the price of maize will positively impact the inflation rate for the month,’’ he said.

In another development, leaders of the Arewa Community in Lagos State said they were in support of the commercial motorcycle ban in some areas in the state, urging their members to comply with the law.

Their position was made known in a communique signed by Alhaji Musa Saleh, Secretary-General, after their extraordinary general meeting on Sunday.

The communique was posted on the police/media platform on Monday, which was monitored by the newsmen.

Newsmen report that Gov. Babajide Sanwo-Olu on Wednesday imposed a total ban on commercial motorcycles, popularly known as Okada, on all highways across six local government areas and nine local council development areas.

The affected areas are Eti-Osa, Ikeja, Surulere, Lagos Island, Lagos Mainland and Apapa.

They said the restriction of commercial operators in some LGAs in Lagos State was not a new law.

“We have resolved today, unanimously that all our members must comply with the provisions of the laws of Lagos State.

“We are law-abiding and we will always continue to intimate all our members to continue to be law-abiding and operate only within the ambits of the law.

“We support all the measures taken by the Lagos State Government in its efforts to protect the lives and property of all Lagos residents,” they said.

The leaders condemned the activities of criminal elements, who were mostly nationals of other neighbouring countries.

They said, ”these foreigners have infiltrated the ranks of those genuine riders, thereby perpetrating all forms of crimes in the state.

“They are constituting serious threats to the lives and property of Lagos residents.

“We are calling on the security agencies to identify and arrest all those criminal elements masquerading as Okada riders.

“We are also tasking the Nigeria Immigration Service to step up its actions along the borders to check the influx of those foreign elements,” they said.

The Arewa leaders said they were in total support to the policies of the state government aimed at curbing all security threats, as well as promoting peace and tranquility.

They called on all Arewa Community members to comply with the law and avoid the six areas affected by the ban.

The leaders promised to work with the government and the Association of Arewa Okada Riders towards the implementation of extant rules and ensure the documentation of all riders in all LGAs.

” We must have adequate data on everyone.

We call on the Lagos State Government to be vigilant and take proper punitive measures against bad eggs within the security agencies.

“We thank the Lagos State Government for its support to our developmental programmes,” they added.

 

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