Inflation Eases as Harvest Boosts Food Supply

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Inflation Eases as Harvest Boosts Food Supply - Nigeria's inflation rate has experienced a temporary respite in August 2024, thanks to a surge in food supply during the harvest season. Prices of essential food items like tomatoes, pepper, yam, and garri have witnessed a significant decline, providing much-needed relief to cash-strapped consumers. This positive development has contributed to a decrease in headline inflation from 33.40% in July to 32.15% in August. While the harvest season has played a crucial role in easing inflationary pressures, concerns remain about the sustainability of this trend. The recent increase in petrol prices poses a significant threat to the gains made in reducing inflation. Higher fuel costs could lead to increased production costs for farmers, ultimately resulting in higher prices for consumers. As the country navigates these economic challenges, it is imperative to implement long-term strategies to address the root causes of inflation and ensure food security. Diversifying agricultural production, improving infrastructure, and promoting sustainable farming practices are essential steps towards building a more resilient economy.

Petrol Prices Soar as Dangote Refinery Supply Begins - Despite hopes for a price reduction, petrol prices in Nigeria have increased by 11% to N950 per litre, following the commencement of supply from Dangote Refinery. The increase comes amidst disagreements between NNPC and Dangote Refinery over the pricing of the product. The new pricing template includes additional costs such as Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) charges, Midstream and Downstream Gas Infrastructure Fund (MDGIF) charges, and distribution and logistics costs, which contribute to the higher pump price. Consumers in different regions of Nigeria will face varying prices, with Borno State having the highest at N1,019 per litre. Independent marketers have expressed concerns about their access to Dangote Refinery's petrol, as they rely on NNPC for supply. The continued closure of the NNPC Retail portal has hindered their ability to purchase the product directly. As the country transitions to a new era of fuel supply, the impact of these price increases on consumers and businesses remains to be seen.

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