Business
OPS Questions Inflation Drop, Citing Market Realities
The Organised Private Sector (OPS) has expressed concerns over the reported decline in Nigeria’s inflation rate, which contradicts the economic situation faced by businesses and consumers across the country.
On Monday, the National Bureau of Statistics (NBS) released its Consumer Price Index, revealing a drop in headline inflation to 32.15% for August 2024, down from 33.40% in July. This 1.25% decline marks the second consecutive month of reduced inflation rates.
However, the OPS remains skeptical, citing rising commodity prices and fuel costs as evidence of worsening economic conditions. Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), questioned the accuracy of the NBS data, saying it does not align with the increasing costs faced by businesses.
“Contrary to NBS reports, prices of goods and services have doubled, even tripled in some cases, driven by the soaring costs of petroleum products,” Oye remarked, referencing the Nigeria National Petroleum Company Limited’s fuel price hike in northern Nigeria.
The OPS highlighted that the ripple effect of high fuel prices has affected transportation, food, and other essential goods, which contradicts the reported inflation decrease. The group also criticized the Central Bank of Nigeria’s monetary policies, including interest rate hikes, for failing to manage inflation effectively.
The National President of the Association of Small Business Owners of Nigeria, Dr. Femi Egbesola, echoed this sentiment, stating that the reported decline is inconsistent with rising living costs, particularly due to increases in petrol prices.
In contrast, Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry, suggested that the inflation dip aligns with market expectations, noting that petrol price hikes became more pronounced in September, not August.
Despite differing views, OPS leaders are urging the government to address structural economic challenges driving inflation rather than relying solely on data that they deem questionable.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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