Category: Business

The Pump Price Of Fuel Rose By 159.92% In One Year – NBS

The National Bureau of Statistics (NBS) has revealed that the pump price of fuel rose by 159.92 percent from N257.12 per liter in January 2023 to N668.30 in January 2024.

Announcing the development in its latest Premium Motor Spirit (Petrol) Price Watch report released for January 2024, the statistics bureau revealed that on a monthly basis, the price of fuel reduced bu 0.53 per cent from N671.86 in December 2023 to N668.30 in January 2024.

Naija News recalls that President Bola Tinubu quickly abolished fuel subsidies upon taking office, resulting in an astronomical spike in pump prices from approximately N189 per litre to more than N640 per litre which it currently sells.

The NBS report read, “The average retail price paid by consumers for Premium Motor Spirit (Petrol) for January 2024 was N668.30, indicating a 159.92% increase when compared to the value recorded in January 2023 (N257.12). Likewise, comparing the average price value with the previous month (i.e. December 2023), the average retail price decreased by 0.53% from N671.86.

“On State profile analysis, Kebbi State had the highest average retail price for Premium Motor Spirit (Petrol) at N796.67, Zamfara and Taraba States were next, with N771.43 and N704.11, respectively. On the other side, Kwara, Niger and Kogi States had the lowest average retail prices for Premium Motor Spirit (Petrol), at N614.90, 624.04 and 626.79 respectively. Lastly, on the Zonal profile, the North West Zone had the highest average retail price of N701.60, while the North Central Zone had the lowest price of N632.86.”

The post The Pump Price Of Fuel Rose By 159.92% In One Year – NBS appeared first on Naija News.

Rising Cost: The Production Capacity Of Nigerian Farmers May Drop By 2025 – Babachir Lawal Warns

Former secretary to the government of the federation (SGF), Babchir Lawal has warned that the rising cost of food production could limit Nigerian farmers production capacity in 2025.

Naija News reports that Lawal, who is also a farmer, issued this warning in response to the rising food inflation, stating that farmers were currently dealing with growing production costs, which could eventually affect the price of food items in the future.

His warning comes as Nigerians continue to protest the rising cost of living in recent months. Many believe that the move by the President Bola Tinubu led government to remove fuel subsidy and unify the country’s exchange rate is responsible for the increased hardship.

In recent days, there have been demonstrations in parts of the country over the prevalent economic hardship and rising cost of living.

The former SGF said that, while there is plenty of food on the market, Nigerians’ purchasing power is insufficient to cover the costs of basic necessities.

Speaking in the light of the increased protests that have hit parts of the country Lawal warned that farmers may be forced to reduce their production due to the high cost of purchasing needed equipment such as tractors, fertilisers, and diesel.

He said, “This thing (protests) we are facing now, it is not because of lack of food items in the market. There is abundance of food items in the market. What is lacking is the money with which to purchase it. This is because the money in our pocket has lost its value.

“If last year, I bought five mudus of garri, today, that same amount can only buy you one mudu. So, the food is there but the money is not there to purchase it.

“Next year, what will happen is that the food will not be there. I am a farmer, a very big-time farmer and I know what I am saying. I spend about three drums of diesel every week during the planting season for my tractors, bulldozers and other vehicles.

“Now, a drum of diesel delivered to my village cost me N380,000 as opposed to N180,000 last year. With this increment, will I be able to afford sufficient diesel for five tractors, two bulldozers, one excavator, and six delivery trucks next year? The consequences might be I will have to reduce the size of my farm.

“Look at fertiliser for example, the highest price last year was N25,000 to N27,000 for NPK- 20 1010. This year, I went to the market to see if I start buying my fertiliser early, the price is now N37,000. So, if last year, I was able to buy fertiliser to cultivate 2,000 hectares of cotton, this year, based on the price, I will have to restrict myself to 100 hectares because I will not have enough money to buy sufficient fertiliser.

“All these price increases will affect the quality and quantity of harvests next year. So, next year, you might enter the market and the cost of food items has doubled because of the production costs. Next year, the problem will be compounded. I can assure you of this as a farmer.

“Food will be scarce because farmers will be unable to produce sufficiently and therefore, supply and demand price will have to increase.”

The post Rising Cost: The Production Capacity Of Nigerian Farmers May Drop By 2025 – Babachir Lawal Warns appeared first on Naija News.

Economic Crisis: Many Nigerians Can No Longer Afford Beer – Nigerian Breweries CEO

Economic Crisis: Many Nigerians Can No Longer Afford Beer - Nigerian Breweries CEO

The Chief Executive Officer of Nigerian Breweries Plc, Hans Essaadi, has stated that due to the current economic situation in Nigeria, citizens are finding it difficult to afford beer.

Naija News reports that Essaadi made this statement on Monday during an investor call that followed the release of its 2023 results.

Essaadi noted that it had been an unparalleled year for their business in Nigeria, witnessing a notable downturn in the mainstream lager market due to Nigerian consumers’ inability to afford a Goldberg after a laborious day.

According to Bloomberg, NB incurred a foreign exchange loss of N153 billion attributed to the devaluation of the naira for the year ending December 2023.

NB increased the prices of its products in August 2023 to offset the continuous surge in input costs.

Among the alcoholic beverages produced by NB are Star Lager, Gulder, Legend Extra Stout, Heineken, Goldberg, Life, and Star Radler.

The NB Board of Directors commented on the financial results: “The Nigeria business landscape experienced significant shifts in 2023 with substantial impact on businesses and livelihoods nationwide. The redesign of the naira notes, which resulted in a cash shortage that severely hampered social and economic activities nationwide, set the tone for a turbulent year.

“High double-digit inflation rates (with food inflation at more than 30 per cent), removal of subsidy on premium motor spirit (fuel), devaluation of the naira, and foreign exchange scarcity further exacerbated the already difficult environment for the populace and businesses.”

He added that despite the headwinds, “The company was able to grow its revenue by nine per cent compared to the previous year aided by a positive price mix. However, the operating profit fell by 15 per cent due to higher input cost and one-off reorganisation costs despite strong and aggressive cost savings and other efficiency measures. Coupled with the impact of the devaluation of the naira, which resulted in a foreign exchange loss of N153 billion, the Company recorded a net loss of N106 billion during the year.”

The board emphasized its readiness to leverage its extensive experience in Nigeria to navigate the current macroeconomic challenges.

Despite the challenging environment, the company said it is committed to drawing from its over 77 years of operation in Nigeria to adapt to present conditions.

The post Economic Crisis: Many Nigerians Can No Longer Afford Beer – Nigerian Breweries CEO appeared first on Naija News.