Nigeria’s inflation rises as internal revenue dips

Tanko Mohammed

The National Bureau of Statistics (NBS) has reported that Nigerian economy is experiencing trouble as inflation rose to 13.7 per cent in September and a dip in internally generated revenue.

It said inflation hit its highest level since its 13.34 per cent rate of March 2018.

Its Consumer Price Index (CPI) report for September released on Thursday, 15th of October, 2020, NBS said the consumer price index which measures inflation increased by 13.71 per cent (year-on-year).

“This is 0.49 per cent points higher than the rate recorded in August 2020 (13.22) per cent.”

On a month-on-month basis, the headline index increased by 1.48 per cent in September 2020.

This is 0.14 per cent rate higher than the rate recorded in August 2020 (1.34) per cent.

The percentage change in the average composite CPI for the twelve months period ending September 2020 over the average of the CPI for the previous 12 months period was 12.44 per cent, showing 0.21 per cent point from 12.23 per cent recorded in August 2020.

The urban inflation rate increased by 14.31 per cent (year-on-year) in September 2020 from 13.83 per cent recorded in August 2020, while the rural inflation rate increased by 13.14 per cent in September 2020 from 12.65 percent in August 2020.

On a month-on-month basis, the urban index rose by 1.56 per cent in September 2020, up by 0.14 from 1.42 per cent recorded in August 2020, while the rural index also rose by 1.40 per cent in September 2020, up by 0.13 from the rate recorded in August 2020 (1.27 per cent).

The corresponding 12-month year-on-year average percentage change for the urban index is 13.07 per cent in September 2020.

This was higher than 12.85 per cent reported in August 2020, while the corresponding rural inflation rate in September 2020 is 11.86 per cent compared to 11.66 per cent recorded in August 2020.
NBS said the nation recorded a negative growth of -11.7% year on year in internally generated revenue.

The 36 states and Federal Capital Territory (FCT) generated a revenue of $2.01 billion in first half of the year compared to $2.26 billion recorded in the same period of 2019.

Lagos State, it said had the highest Internally Generated Revenue with $667 million, closely followed by Rivers State with $209 million while Jigawa State recorded the least internally generated revenue.