For the first time in 15 months, Nigeria’s inflation rate dropped to 17.78 percent, despite a rise in energy cost.
Data released from the National Bureau of Statistics (NBS) on Tuesday show that Consumer Price Index (CPI), which measures inflation, dropped to 17.78 percent (year-on-year) in February 2017, 0.94 percent points lower from the 18.72 percent recorded in January with energy costs moderating the fall.
“During the month of February, the highest year on year increases were seen in electricity, Liquid and solid fuels, Fuels and lubricants for personal transport equipment,” says the report.
Other items included are accessories, book and stationeries, garments, vehicle spare parts, shoes and other footwear, passenger transport by road, household textiles, Furniture and furnishings, Motorcars and Carpets and other floor coverings.
This is the first time in 15 months that the headline CPI has declined on a year on year basis, driven by slower rises in food and non-food prices and favourable base effects over 2016 prices
Also NBS released price watch for kerosene, cooking gas and diesel, which illustrates the depth of the volatility of the market.
Premium motor spirit or petrol fluctuated across the federation with average price of N150 in the South south, N145 in the South west, N150 in the South east and N155 in the North east.
Average price per litre paid by consumers for National Household Kerosene decreased by 18.77% month-on month and increased by 31.34% year-on-year to N352.42 in February 2017 from N433.84 in January 2017.
Meanwhile average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) increased by 5.48% month-on-month and 45.59% year-on-year to N2,708.38 in February 2017 from N2,567.56 in January 2017.
As for automotive gas oil (diesel), average price paid by consumers for increased by 3.68% month-on-month and 68.74% year-on-year to N249.38 in February 2017 from N240.52 in January 2017.
The data has indicated the need to ramp up local production of energy products consumed in Nigeria especially AGO and LPG.
“It reinforces the need for Nigeria to refine its own products at home,” says Adeola Adenikinju gas policy analyst for the World Bank and professor of Economics at University of Ibadan.
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