Nigeria’s inflation rate increased for the fourth consecutive month to 22.22 per cent in April from the 22.04 per cent recorded in March.

This is according to the Commodity Price Index report published on Monday by the National Bureau of Statistics.

The April 2023 inflation rate showed an increase of 0.18 percentage points when compared to March 2023 headline inflation rate.


Similarly, on a year-on-year basis, the headline inflation rate was 5.40 percentage points higher compared to the rate recorded in April 2022, which was 16.82 per cent.

Details later

https://punchng.com/just-in-inflation-rate-rises-to-22-22/

Where is my manager, increase the price of our products again jare

Let's see who will cry first.

It doesn’t affect APC supporters.

Igbo traders will simply increase price and remain unaffected

Nairalanda1, since you strongly support removing subsidies, do you also have a solution for inflation? which is worse for our economy, paying subsidies or not tackling inflation?

MXrep:
Igbo traders will simply increase price and remain unaffected

And tinubu boys will wail and beat their brothers that look fresh calling them Omo ibo

It affects every one

Tianamen1:
Nairalanda1, since you strongly support removing subsidies, do you also have a solution for inflation? which is worse for our economy, paying subsidies or not tackling inflation?

Since you strongly support subsides, do you have a solution for the debt that results from trying to cover the difference between the cost of producing petrol and selling it at 'subsidized price'? Or the lack of profit that results from subsides which leads to poor refining capacity?

Plus, do you think it is ok for businesses to sell things at a loss? How then do they pay for their suppliers , etc since subsidy does not let them make a profit?


Seriously, just because I believe a business has to make a profit to do well does not mean that I am an oppressor. At the end of the day, subsides are bad news for any economy.

Ghana has no subsidy and two refineries.

nairalanda1:


Since you strongly support subsides, do you have a solution for the debt that results from trying to cover the difference between the cost of producing petrol and selling it at 'subsidized price'? Or the lack of profit that results from subsides which leads to poor refining capacity?

Plus, do you think it is ok for businesses to sell things at a loss? How then do they pay for their suppliers , etc since subsidy does not let them make a profit?


Seriously, just because I believe a business has to make a profit to do well does not mean that I am an oppressor. At the end of the day, subsides are bad news for any economy.

Ghana has no subsidy and two refineries.

First of all, you didn't answer my question about INFLATION.

The average local price of petrol in the United States in 2006 and 2023 is the same. prices of production have not changed.

In Nigeria, the price of petrol in 2006 was N75 and it is about N220 in 2023. this isn't because of increased costs of production but because of inflation and the devaluation of the Naira.

Is the solution to constantly shift cost increases to citizens when the exchange rates collapse and inflation increases as a result of the Nigerian government's incompetence?

For how long do you want the government to keep increasing the price of petrol rather than putting policies in place to fight inflation and stop the collapse of the Naira?

Tianamen1:


First of all, you didn't answer my question about INFLATION.

The average local price of petrol in the United States in 2006 and 2023 is the same. prices of production have not changed.

In Nigeria, the price of petrol in 2006 was N75 and it is about N220 in 2023. this isn't because of increased costs of production but because of inflation and the devaluation of the Naira.

Is the solution to constantly shift cost increases to citizens when the exchange rates collapse and inflation increases as a result of the Nigerian government's incompetence?

For how long do you want the government to keep increasing the price of petrol rather than putting policies in place to fight inflation and stop the collapse of the Naira?

Answer my question first...especially since we are having inflation with subsidy...does that tell you something?

If we are having inflation now, that means the subsidies you support don't work. And the key reason is the deficit they induce in government spending.

Simples.

Whereas, removing it would spur investment, more revenue, and cut the deficit.

But no, I am an oppressor, so.....

successmatters:
Where is my manager, increase the price of our products again jare

Let's see who will cry first.

But you know everyone will cry Las Las...

nairalanda1:



Answer my question first...especially since we are having inflation with subsidy...does that tell you something?

If we are having inflation now, that means the subsidies you support don't work. And the key reason is the deficit they induce in government spending.

Simples.

Whereas, removing it would spur investment, more revenue, and cut the deficit.


But no, I am an oppressor, so.....

I going to try to be on the same page with you.

Your concern is about importers paying a higher price for petrol and then having to sell it at a lower price. Your second issue is the government paying for the difference in the import costs and the final price the general public pays.

1.The higher price of petrol the importers pay is directly as a result of the Naira losing its value. the naira continues to lose its value primarily because of 2 issues.

A. Low taxation of foreign-made goods. this is evidenced by Nigeria's low Tax to GDP ratio. Our "elite" class want to import things without paying taxes. Nigeria is also a highly unequal society. countries similar to Nigeria have progressive taxation systems where the more you have, the more you pay. India and China are examples of such countries.

B. Low investments in public education and healthcare. a productive labour force will create more goods that can be exported to increase Nigeria's income.


2. Government payments of subsidies. if the government managed the inflation rate and the exchange rate, there will be no need for subsidies in the first place. it is the incompetence of the government that is leading to the constant fall in the value of the Naira.

Although the removal of subsidies will increase inflation, it is not the main driver of inflation in Nigeria. Our lack of taxation and investment in public primary and secondary education are the biggest culprits to the fall of our economy.

ps
Ghana's Tax to GDP ratio for 2022 was 13.9%
Nigeria's Tax to GDP for 2020 was 5.5%
Ghana's Tax to GDP is more than twice Nigeria's.

Tianamen1:



I going to try to be on the same page with you.

Your concern is about importers paying a higher price for petrol and then having to sell it at a lower price. Your second issue is the government paying for the difference in the import costs and the final price the general public pays.

1.The higher price of petrol the importers pay is directly as a result of the Naira losing its value. the naira continues to lose its value primarily because of 2 issues.

A. Low taxation of foreign-made goods. this is evidenced by Nigeria's low Tax to GDP ratio. Our "elite" class want to import things without paying taxes. Nigeria is also a highly unequal society. countries similar to Nigeria have progressive taxation systems where the more you have, the more you pay. India and China are examples of such countries.

B. Low investments in public education and healthcare. a productive labour force will create more goods that can be exported to increase Nigeria's income.


2. Government payments of subsidies. if the government managed the inflation rate and the exchange rate, there will be no need for subsidies in the first place. it is the incompetence of the government that is leading to the constant fall in the value of the Naira.

Although the removal of subsidies will increase inflation, it is not the main driver of inflation in Nigeria. Our lack of taxation and investment in public primary and secondary education are the biggest culprits to the fall of our economy.

ps
Ghana's Tax to GDP ratio for 2022 was 13.9%
Nigeria's Tax to GDP for 2020 was 5.5%
Ghana's Tax to GDP is more than twice Nigeria's.

So remove subsides and improve tax uptake.

Simple

Also, you love price controls..well there is no such thing as cheap petrol

And you are still running away from the deficit issue that subsidy causes.

Anyway..

nairalanda1:



So remove subsides and improve tax uptake.

Simple

Also, you love price controls..well there is no such thing as cheap petrol

And you are still running away from the deficit issue that subsidy causes.

Anyway..

If we simply remove subsidies, we are bailing out the incompetent government. We are also giving them more money to steal. Let them raise taxes on the rich, stabilize the Naira and inflation before removing any leftover subsidy.


I love development and progress not price controls which is why I am trying to make you ( the number 1 anti subsidy campaigner) better understand the issue you are fighting for.


Deficit to the Government? The subsidy exist because of poor policies of the government. The price of petrol in America is the same today as it was in 2006. Why it is going up in Nigeria is because of inflation and the fall in the value of the naira. Inflation and the depreciation of the naira is as a result of low taxation and low investment in public education and healthcare.

Tianamen1:


If we simply remove subsidies, we are bailing out the incompetent government. We are also giving them more money to steal. Let them raise taxes on the rich, stabilize the Naira and inflation before removing any leftover subsidy.


I love development and progress not price controls which is why I am trying to make you ( the number 1 anti subsidy campaigner) better understand the issue you are fighting for.


Deficit to the Government? The subsidy exist because of poor policies of the government. The price of petrol in America is the same today as it was in 2006. Why it is going up in Nigeria is because of inflation and the fall in the value of the naira. Inflation and the depreciation of the naira is as a result of low taxation and low investment in public education and healthcare.

Okay, you support selling stuff below what it costs to make them

Right.


Anyway

nairalanda1:



Okay, you support selling stuff below what it costs to make them

Right.


Anyway

It seems you support criminally corrupt government officials who spend our dollar earnings from crude oil frivolously, thus devaluing our Naira, making everything from Fuel, Electricity to Cement more expensive for everyday Nigerians.
Right?

Tianamen1:


It seems you support criminally corrupt government officials who spend our dollar earnings from crude oil frivolously, thus devaluing our Naira, making everything from Fuel, Electricity to Cement more expensive for everyday Nigerians.
Right?

Well done
You're knowledgeable
The other dude is too narrow- minded to understand the valid points you're making
Or maybe he's just a paid hack

Mynd44, Nlfpmod 22.22 is numerical coincidental.........

Tianamen1:


It seems you support criminally corrupt government officials who spend our dollar earnings from crude oil frivolously, thus devaluing our Naira, making everything from Fuel, Electricity to Cement more expensive for everyday Nigerians.
Right?

Ah , abuse has started

All i support is the principle of allowing businesses operate at a profit

You cannot do that under a subsidy regime

Good morning. I will trobule you no more.

nairalanda1:



Ah , abuse has started

All i support is the principle of allowing businesses operate at a profit

You cannot do that under a subsidy regime

Good morning. I will trobule you no more.

I never abused you. I am only trying to explain Macroeconomics to you. The subsidy exists because of poor policies by the government. You cannot continue to shift the costs to the citizens.

Buhari came to punish us.....