Nigeria’s inflation rate climbed to the highest in almost four years in March, adding pressure on the central bank to ease foreign-exchange controls that are pushing up food and fuel prices.

Inflation in Africa’s largest economy and oil producer accelerated to 12.8 percent on an annualized basis, the highest since July 2012, from 11.4 percent in February, the Abuja-based National Bureau of Statistics said by e-mail on Tuesday. Food prices rose 12.7 percent in March from a year ago, compared with 11.4 percent in the previous month, driven up by transportation costs, the planting season and foreign-exchange movements, the statistics agency said.

The Nigerian central bank has pegged the naira at 197-199 per dollar since March last year, and restricted trading in foreign currencies, making imports more costly for a nation that’s a net importer of refined fuel and food products. Importers struggle to access foreign exchange at the official rate, with the naira falling to around 320 on the black market. The nation imports at least 70 percent of refined fuel, despite pumping two million barrels of crude a day, and faces fuel shortages.

“It looks like the fuel problem won’t go away in the short term, and we think inflation could rise to 14 or 15 percent this year,” John Ashbourne, an economist at Capital Economics Ltd. in London, said by phone on Tuesday. “The inflation rate could add pressure to accelerate further interest-rate increases.”
The central bank increased its benchmark interest rate by 100 basis points to 12 percent last month after inflation accelerated to more than 10 percent in February. Price growth has been outside the government’s 6 percent to 9 percent target band for 10 months.

Median Estimate
The median of 16 economist estimates compiled by Bloomberg was for inflation to reach 11.8 percent. Consumer prices rose 2.2 percent in March from the month before.

While the government capped pump prices at 87 naira ($0.44) a liter (0.26 gallon) based on the official exchange rate, the average price for a liter of gasoline was 135.69 naira in March, according to a separate report from the statistics agency. Marketers regularly sell fuel above the level of the price cap. The government announced last week that it’s asked international energy companiesto provide foreign currency to retailers to make import-orders.

“The central bank can’t continue raising rates only,” Babajide Solanke, an analyst at Lagos-based FSDH Merchant Bank Ltd., said by phone before the data were released. “They should probably look at adjusting foreign exchange controls now.”

The International Monetary Fund has lowered its 2016 growth forecast for Nigeria by almost one percentage point to 2.3 percent and said the effect of the lower price of oil, where Nigeria earns most of its income, will be “durable.”

http://www.bloomberg.com/news/articles/2016-04-12/nigeria-march-inflation-soars-to-almost-four-year-high-of-12-8

Counterfeit change!!!!!!!!

The ridiculous thing is that oil price is low but we buy petrol at a higher price.

I have never seen this type of government before. Can't even remember the last time I bought a petrol for less than 120 Naira per litre. Currently a litre of petrol is sold above 200Naira in Aba. I have stopped using generator for my business. All thanks to Buhari and co.

Una never see sumtin.. shey dey are seeking for change, witout askin if it's a good change or not? A man who's house is on fire, and goes out chasing after rats, is not wise..

Change in Advance, more change loading .... 30%

I don't envy the CBN right now. Are we to expect another rate hike and crr increase? This is crazy

This happens when Nepa bill becomes a certificate.

Its part of the CHANGE they brought. So....


#proudly5%

This is no news. The shortfall from the last maladminstration. The current administration will do everything to make it better.

It was worst during GEJ economy woes and calamity

Buhari the Sky-rocker is a SCAM

Bloomberg again?
Nigeria’s inflation rate climbed to the highest in almost four years in March, adding pressure on the central bank to ease foreign-exchange controls that are pushing up food and fuel prices.

They have cried consistently for PMB to devalue the Naira for their briefcase portfolio western investors benefit, they are back again with another subtle blackmail.
Bloomberg promoted APC against PDP prior to the elections and expected that PMB will be a puppet like those Francophone Head of States, since that failed they have been reporting too many negatives against Nigeria.
While I dont like APC policies but western media should not be the one telling me about it as they are known to destructive from Iraq to Libya to Ukraine to Syria etc.
Western media should face their corrupt leaders implicated in the Panama Papers scandal including David Cameron the British Prime Minister and leave us in Nigeria to tackle ourselves without their interference; do they want to foment a Nigerian Spring like in Libya and Syria?

CHANGE ! .

e go beta

and dangote is right on the above thread...

Where are the economists? Make una prefer solution asaply... #teamGodblessNigeria

It's..."the beginning of the end"..

see change ooooooooooooo

It will soon come down

When illiterates govern, inflation soars-Karl Marx

The way CBN and this government has allowed this free-fall of the economy, even the much anticipated liquidity from budget (don't even know if, and when the budget will be passed) spending will not likely stem this inflationary tide any more, things had gone South for too long.

It took him 6 months to appoint ministers, now they are formulating policies that won't work...he just started seeing the reasons why he should work....he was trading blames before.

Nigeria will be great if we stop being sentimental ....especially in the aspects of religion, tribe, and political party.

Let's call a spade a spade regardless your religion, your tribe, and your political party.

We have been living on imported goods ever since! No more dollar to squander since the price of crude oil has gone down terribly from about $114 to $36 per barrel. We need to start exporting goods and services now so that the value of naira will increase.

Whose fault?

















Me and you!

they should not worry, it will come down very soon PMB is working assiduously on it globe trotting to seek help
May God bless your hustle Mr President

and Dangote said the current economic policies are in the right path..

https://www.nairaland.com/3043924/economy-buhari-right-path-dangote/1#44636819

hmmmm... selfishness everywhere

and mr Saviour, the leader of change is busy dancing to bruce lee and jackie chan in China over $2B......whatever happened to the $500B that UAE were going to repatriate to Naija as well as the over $8B that madam diezani returned to the coffers before leaving power
... ahh, we have to fuel and service baba's 9 private jets for his endless travels and world exploration domination

/
Nigeria will be great the day they refine their petroleum for local consumption and corner the rest of the African markets.

The West will come for a piece of the pie instead of Nigeria running to them to beg. China cornered manufacturing and the West started running to China to borrow.

No economic textbook written in the West will explain it. But Africans vomit only economic theories swallowed or do I say, shoved down their throat by the West. If you build, they must come. It is like ants and sugar. The educated Nigerians are the most clueless ones. They can't think beyond that piece of paper called certificate. Try engaging them in common sense debate...you will be shocked--Garbage in, garbage out
\

Buhari is a failure as I expected he would be.
All his antecedents point to that yet zombies refused to listen.

brainpulse:
It was worst during GEJ economy woes and calamity

your brainpulse, is it functioning?

While people like Dangote tells us Buhari is on the right part. But why won't he when the forex meant for the entire country is used in funding his personal investments?

God punish buhari

Thunder fire buharii and his entire house hold. Lightning strike thieftunnubu and his entire house hold.........