Our Inflation rate is better in Nigeria than most African nations- CBN

August 9, 2023 Wale Ponnle

According to the Central Bank of Nigeria, CBN, the country’s inflation rate is still lower than that of the majority of African countries. The acting governor of the CBN, on Tuesday in Lagos at the 2023 Zenith Bank International Trade Seminar, Folashodun Shonubi revealed it. He claimed that a number of factors contributed to the rise in worldwide inflation.

Having a speech on the subject of “Nigerian Non-Oil Export Industry. The Present, The Future,” Mr. Shonubi also spoke about the decreasing growth rate of the ratio of non-oil exports to GDP.

The Deputy Governor for Economic Policy at the CBN, Kingsley Obiorah, spoke on behalf of the acting CBN governor, who stated that the country’s inflation rate was 22.8% and that the IMF anticipated a growth deceleration to 3.2% in 2023.

When speaking of Ghana, a bordering country in Africa, Obiorah said, “At the most recent count, inflation there was 42.5%. Ethiopia and Egypt both have it at 31% and 36%, respectively.

“Presently in Nigeria, we are at 22.8%. These numbers indicate that things aren’t as bad as they seem, but economic growth has also been impacted by all of this. The IMF today reduced growth estimates from 3.5% to 3% for this year and 3% for the following year.

“Mr. Shonubi further went on to reveal that they expect growth in Sub-Saharan Africa to normalize from 4.1% last year to 3.5% this year, but to take back again to just over 4% next year,”. In Nigeria, they anticipate that we will achieve 3.2% this year.

Obiorah noted that a shift from products to services as well as the conflict between Russia and Ukraine are important causes.

We are aware that the conflict between Russia and Ukraine, two major exporters of commodities, is having a significant impact. 30% of all sunflower exports worldwide come from the two of them. You can therefore predict what would happen to food costs around the world when such a region is at war.

We are also aware that consumers’ preferences have changed from purchasing items to using services, which are typically more expensive. The disruption caused by China’s zero COVID policy, power outages, as well as the shift from coal to more renewable energy sources, has also made power less valuable than it once was, he added.

According to him, China’s high rate of investment in real estate services has also caused supply chain disruptions. “We also observe some market correction in China today. Many Chinese lack the same kind of investment vehicles as, say, the typical American.

“Many billionaires in China put their money in real estate. However, it has resulted in an oversupply of real estate in China today. In China, there are 65 million vacant flats that can comfortably house Millions of people in France. So, the correction is also causing problems in the supply chain.

“Nigeria’s non-oil exports to GDP ratio in the ten years from 2001 to 2011 was 0.8%. You may assume that in the following ten years, from 2012 to 2022, we remained at 1.2%, indicating an increase of 0.4% over that time.

“We need to expand much more quickly. Smaller nations are doing considerably better than us, he remarked.

In addition, Obiorah compared the land area of certain nations to that of Nigeria, noting the ratio of their non-oil exports to GDP. The Netherlands has a land area of 34,000 square kilometers, he stated.

So, if you include water, the result is 42,000. You might find it interesting to know that 29% of the Netherlands’ GDP comes from non-oil exports. They typically export $108 billion of non-oil goods.

“Remember that the Netherlands is essentially the same size as Niger State, but it is smaller. I’ll give you one more illustration. Ireland, a nation of just 70,000 square kilometers, regularly exports goods worth $170 billion that aren’t made of oil so that we can do better.

Author

Wale Ponnle

A passionate writer of everything politics in Nigeria with the goal and purpose of bringing authentic information and unbiased news to everyone everywhere.

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