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Nigeria’s inflation rate increases to 20.52% in August

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Cooking Gas Price Increases By 86.62% in One Year – NBS

The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate increased to 20.52 per cent on a year-on-year basis in August.

This is according to the NBS Consumer Price Index(CPI) and Inflation Report for August released in Abuja on Thursday.

Also read: Nigeria’s total trade for Q2 2022 stands at N12.841bn – NBS

The report says the figure is 3.52 per cent points higher compared to 17.01 per cent recorded in August 2021.

“This shows that the headline inflation rate increased in August 2022 when compared to the same month in the previous year.

“Meaning that in August 2022, the general price level was 3.52 per cent higher relative to August 2021,” the NBS stated.

According to the report, factors responsible for the increase in annual inflation rate include disruption in the supply of food products.

It said other factors were an increase in import cost due to the persistent currency depreciation and a general increase in the cost of production.

The report said on a month-on-month basis, the Headline inflation rate in August was 1.77 per cent, which was 0.05 per cent lower than the rate recorded in July at 1.82 per cent.

“This means that in August 2022 the headline inflation rate on a month–on–month basis declined by 0.05 per cent,” said the report.

According to the report, the factor responsible for the decline in the monthly inflation rate is a decline in the current month’s food index relative to the reference month index, which is due to the harvest season.

It said another factor was the relative stability in transportation cost due to the availability of fuel.

The report said the percentage change in the average CPI for the 12 months, ending August, over the average of the CPI for the previous twelve months period was 17.07 per cent.

“This is showing a 0.47 per cent increase compared to 16.60 per cent recorded in August 2021,” the report noted.

It said increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

The report said on a year-on-year basis, in August, the urban inflation rate was 20.95 per cent, which was 3.36 per cent higher compared to the 17.59 per cent recorded in August 2021.

While on a month-on-month basis, the urban inflation rate was 1.79 per cent in August, this was a 0.03 per cent decline compared to July at 1.82 per cent.

The report showed the rural inflation rate in August was 20.12 per cent on a year-on-year basis; this was 3.69 per cent higher compared to 16.43 per cent recorded in August 2021.

“While on a month-on-month basis, the rural inflation rate in August was 1.75 per cent down by 0.06 per cent compared to July 1.81 per cent,” continued the report.

It added that said the food inflation rate in August was 23.12 per cent on a year-on-year basis, which was 2.82 per cent higher compared to the rate recorded in August 2021 at 20.30 per cent.

“This rise in the food inflation was caused by increases in prices of bread and cereals, potatoes, yams and other tubers, fish, meat, oil and fat,” it said.

While on a month-on-month basis, the food inflation rate in August was 1.98 per cent, this was a 0.07 per cent decline compared to the rate recorded in July at 2.04 per cent.

According to the report, this decline is attributed to a reduction in prices of some food items like tubers, garri, local rice and vegetables.

The report stated that the average annual rate of food inflation for the 12-month period ending August over the previous 12-month period was 19.02 per cent, a 1.48 per cent decline from the average annual rate of change recorded in August 2021 at 20.50 per cent.

The report said in August, all items inflation rate on a year-on-year basis was highest in Ebonyi with 25.33 per cent, followed by Rivers with 23.70 per cent and Bayelsa with 23.01 per cent.

“While the states with the slowest rise were Jigawa with 17.30 per cent, followed by Borno with 17.56 per cent and Zamfara with 18.04 per cent,” said the report.

It said on a month-on-month basis, August recorded the highest increase in Anambra with 2.78 per cent, followed by Ondo with 2.53 per cent and Nasarawa with 2.40 per cent.

It observed that the slowest rise was recorded in Yobe with 0.68 per cent followed by Borno with 0.84 per cent and Zamfara with 0.98 per cent.

The report said in August, food inflation on a year-on-year basis was highest in Kwara at 30.80 per cent followed by Ebonyi at 28.06 pe ent and Rivers at 27.64 per cent.

It added that the slowest rise was recorded in Jigawa at 17.77per cent, followed by Zamfara at 18.79 per cent and Oyo at 19.80 per cent.

However, it said on a month-on-month basis, August food inflation was highest in Anambra with 3.05 per cent, followed by Ondo with 2.92 per cent and Bauchi with 2.78 per cent.

The report said the slowest rise was recorded in Yobe with 0.46 per cent, followed by Oyo with 0.89 per cent and Delta with 0.94 per cent.

 

Economy

Import Licence: NNPCL Asks Court To Strike Out Dangote Refinery’s Suit 

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Import Licence: NNPCL Asks Court To Strike Out Dangote Refinery’s Suit

The Nigeria National Petroleum Corporation Limited (NNPCL) has asked a Federal High Court in Abuja to strike out a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE, describing it as “incompetent.”

The NNPCL, in a notice of preliminary objection filed by its team of lawyers led by Kehinde Ogunwumiju, SAN, before Justice Inyang Ekwo, argued that the suit was premature.

The application, marked: FHC/ABJ/CS/1324/2024 dated and filed on Nov. 15, was sighted on Wednesday.

NNPCL seeks two orders, which include an order of the honourable court striking out the suit for lack of jurisdiction and alternatively, an order striking out the name of the 2nd defendant (NNPCL) from the suit.

Giving a six-ground argument, the corporation argued that Dangote Refinery lacked locus standi to institute the suit.

“The plaintiff’s suit is premature. The plaintiff’s suit discloses no cause of action. The 2nd defendant is not a competent party. The plaintiff’s suit is incompetent. This honourable court lacks the jurisdiction to hear this suit,” the NNPCL said.

In the affidavit in support of the application deposed to by Isiaka Popoola, a clerk in the law firm of Afe Babalola & Co, counsel to the NNPCL, he said one of their lawyers, Esther Longe who perused Dangote’s originating summons, affidavit and written address told him that an examination of the processes showed that NNPC sued by the refinery was a non-existent entity.

Popoola averred that the court lacked jurisdiction over the 2nd defendant sued as NNPC.

“This 2nd defendant in this suit as consistently seen on the face of the plaintiff’s originating summons, the affidavit in support and the written address as “Nigeria National Petroleum Corporation Limited (NNPC)”

“A simple search on the CAC website shows that there is no entity called “Nigeria National Petroleum Corporation Limited (NNPC).”

 “The printout of the said search is hereby attached and marked as Exhibit A,” he said.

According to Popoola, the 2nd defendant/objector is not the same as the 2nd defendant sued by the plaintiff.

“The registered name of the 2nd defendant/objector is Nigerian National Petroleum Company Limited and this is the only name it can be sued by,” he added.

He said the NNPCL as sued by the refinery in the instant suit, is not a competent party or a juristic person.

Popoola, who averred that the suit was incompetent and ought to be struck out, prayed the court to grant their application in the interest of justice.

It had been earlier reported that three oil marketers had also prayed the court to dismiss the suit.

The oil marketers, in a joint counter affidavit marked: FHC/ABJ/CS/1324/2024 filed on Nov. 5 in response to Dangote Refinery’s originating summons, told Justice Ekwo that granting that application would spell doom for the country’s oil sector.

According to them, the plan to monopolise the oil sector is a recipe for disaster in the country.

The three marketers; AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in their response, said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians.

Besides, they argued that there was nothing placed before the court to prove the contrary.

Dangote Refinery had sued Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigeria National Petroleum Corporation Limited (NNPCL) as 1st and 2nd defendants.

Also listed as 3rd to 7th defendants respectively in the originating summons dated Sept. 6 are AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

It prayed the court to nullify import licences issued by NMDPRA to the NNPCL and five other companies to import refined petroleum products.

The company also prayed the court to declare that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.

It stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.

It also urged the court to declare that NMDPRA violates its statutory responsibilities under the PIA for not encouraging local refineries such as the company.

The company equally sought N100 billion in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products.

These it said are Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) in Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”

Justice Ekwo had fixed Jan. 20, 2025, for the report of settlement or service.

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Economy

PETROL: ‘Be Wary Of Substandard Product Dumping’, Dangote Refinery Tells Nigerians

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PETROL: 'Be Wary Of Substandard Product Dumping', Dangote Refinery Tells Nigerians

…Says citizens’ health and vehicle longevity are seriously at risk!

The Dangote Refinery on Sunday warned that Nigerians may soon begin to buy substandard petrol, without much concern for either the citizen’s health or the longevity of their vehicles, except care is taken to prevent low products dumping by those open to connive with certain international traders.

The Group’s image maker and spokesman, Anthony Chiejina gave the warning, saying the group was constrained to raise the alarm, despite its desire to refrain from engaging in any media fights.

“We have lately refrained from engaging in media fights but we are constrained to respond to the recent misinformation being circulated by IPMAN, PETROAN, and other associations. 

“Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports”, Chiejina stated, stressing that the issue on ground was not about being able to land relatively cheaper petrol on ground, but the quality of such products.

“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low-quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles. Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.

“Post deregulation, NNPC set the pace by selling PNS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks.

“In good faith, and the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.

“At the same time, an international trading company has recently hired a depot facility next to the Dangote Refinery, intending to use it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production.

“This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips to protect their domestic industries.

“While we continue with our determination to provide affordable, good quality, domestically refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty”, the Group Chief Branding and Communications Officer further said.

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YULETIDE Decorations: LASG To Divert Traffic At Ajose Adeogun

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YULETIDE Decorations,: LASG To Divert Traffic At Ajose Adeogun

The Lagos State Government will divert Traffic, away from a section of Ajose Adeogun Street in Victoria Island, for the mounting of end-of-the-year decoration, for a duration of three weekends starting from Saturday 19th October 2024.

The aforementioned exercise, according to Commissioner for Transportation, Oluwaseun Osiyemi,  will be carried out in three phases with each phase focusing on different sections of the street. 

To this end, the following alternative routes have been mapped out for motorists during the cause of the mounting; 

 During the First Phase which will cover Jubril Martins to Chicken Republic – (Saturday, 19th and Sunday, 20th October 2024)

Traffic inward Eko-Hotel Roundabout will be diverted to the other half (existing section) of Ajose Adeogun Street by VCP Hotel to form contra-flow traffic and exit at Eko-Hotel Roundabout to continue journeys.

Alternatively, Traffic inward to Eko-Hotel Roundabout from VCP Hotel will be diverted through Jubril Martins into Muri Okunola to link Patience Coker and access Ajose Adeogun Street to connect destinations.

During the Second Phase which will cover Molade Okoya Thomas to Mounis Bashorun section – (Saturday, 26th and Sunday, 27th October 2024). 

Traffic inward Ajose Adeogun Street from Eko-Hotel Roundabout will be diverted to a right turn into Molade Okoya Thomas to link Younis Bashorun to access Ajose Adeogun Street to continue journeys. 

During the Third phase of the project spanning 10 meters inward Ajose Adeogun (Saturday, 2nd November, 2024).

Motorists from Adetokunbo Ademola Street will maintain a lane movement for about 10 metres into Ajose Adeogun Street to connect their destinations, while Motorists inward Eko-Hotel Roundabout on Ajose Adeogun Street will maintain a lane movement for about 10 metres into Eko-Hotel Roundabout.

The Lagos State Commissioner for Transportation, Mr Oluwaseun Osiyemi while imploring Motorists to note the ease of movement plan assured that the State’s Traffic Management Authority will be on ground to manage vehicular activities along the corridor to minimise inconveniences.

The Commissioner therefore advised Motorists to be patient, as the Partial closure is part of the traffic management plans for the commencement of End of Year Decoration of Ajose Adeogun Street, Victoria Island, Lagos, by Zenith Bank PLC.

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