Inflation Rises to 28.2% on Higher Food, Energy Prices

• Severe in Kogi, Lagos, Rivers, others
• FAAC disburses N1.08tn from N1.62tn gross revenue for Nov.
• Balance in excess crude account still $473,754

The Consumer Price Index (CPI) which measures the rate of change in prices of goods and commodities further rose to 28.20 per cent in November compared to 27.33 per cent in the preceding month, the National Bureau of Statistics (NBS), revealed yesterday.

This was just as the Federation Account Allocation Committee (FAAC) yesterday, shared a total sum of N1.089 trillion among the federal, state and local government councils as allocation from a gross revenue of N1.620 trillion for November.

The inflation report showed that year-on-year, headline inflation was also 6.73 per cent higher compared to 21.47 per cent recorded in November 2022.
According to the CPI report for the month under review, month-on-month, the headline index inflation rose to 2.09 per cent compared to 1.73 per cent in October.

In November, food inflation rose to 32.84 per cent year on year compared to 24.13 per cent in 2022. The rise in the food index was attributed to increases in prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables and coffee, tea and cocoa, potatoes, yam and other tubers.

The core index, which excludes the prices of volatile agricultural produces and energy increased to 22.38 per cent year on year in November compared to 17.99 per cent in 2022.

The highest price increases was recorded in passenger transport by road, medical services, passenger transport by air, actual and imputed rentals for housing, pharmaceutical products, and accommodation service among others. Month-on-month, core inflation rose to 1.53 per cent in November from 1.39 per cent in October.

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Meanwhile, urban inflation rose 8.13 per cent to 30.21 per cent year on year compared to the 22.09 per cent in November 2022.

Month-on- month, the index also increased to 2.23 per cent from 1.81 per cent in October. Similarly, rural inflation rose to 26.43 per cent year-on-year, up by 5.55 per cent compared to the 20.88 per cent in November 2022.

Month-on- month, rural inflation increased to 1.99 per cent compared to 1.67 per cent in the preceding month.
At State level, general inflation year on year was highest in Kogi (33.28 per cent), Lagos (32.30 per cent), and Rivers (32.25 per cent), while Borno (22.47 per cent), Katsina (24.91 per cent) and Plateau (25.53 per cent) recorded the slowest rise.

Month-on-month, prices were highest in Kano (3.55 per cent), Kebbi (3.34 per cent), Borno (3.24 per cent), while Taraba (0.74 per cent), Anambra (1.00 per cent) and Enugu (1.18 per cent) recorded the slowest rise.

According to the NBS, year on year, food inflation was highest in Kogi (41.29 per cent), Kwara (40.72 per cent) and Rivers (40.22 per cent), while Bauchi (26.14 per cent), Borno (27.34 per cent) and Jigawa (27.63 per cent) recorded the slowest rise.

Month-on-month, however, Cross River (4.37 per cent), Edo (3.95 per cent) and Rivers (3.91 per cent) recorded the highest increases in food prices while Anambra (0.63 per cent), Oyo (0.91 per cent) and Bauchi (1.00 per cent) recorded the slowest rise.

FAAC Disburses N1.08tn from N1.62tn Gross Revenue for November

Meanwhile, FAAC yesterday shared a total sum of N1.088 trillion to the federal, state and local government councils as allocation from a gross revenue of N1.620 trillion ( N1, 620.335 trillion) for November.

The disbursement was made at the FAAC December meeting in Abuja, according to a communique issued by the Committee.

From the shared amount, inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference, the federal government received N402.867 billion, states got N351.697 billion, local government councils received N258.810 billion, while the oil producing states received N75.410 billion as 13 per cent derivation.

Citing the communique, separate statements issued by the Ministry of Finance and the Office of the Accountant of Generation (OAGF), disclosed that the sum of N60.960 billion was for cost of collection, and N470.592 billion allocated for transfers intervention and refunds. Gross revenue available from VAT was N360.455 billion, an increase from the N347.343 billion distributed in the preceding month, resulting in an increase of N13.112 billion.

From the amount, the sum of N14.418 billion was allocated for cost of collection, N10.381 billion given for transfers, intervention and refunds.
The remaining sum of N335.656 billion was distributed to the three tiers of government with the federal government receiving N50.348 billion, states received N167.828 billion, local governments- N117.480 billion.
The Gross Statutory Revenue of N882.561 billion received in the reference month was higher than the sum of N660.090 billion received in the previous month of October, by N222.470 billion.

From that amount, the sum of N46.044 billion was allocated for cost of collection and a total sum of N460.211 billion for transfers, intervention and refunds.

The remaining balance of N376.306 billion was distributed as follows to the three tiers of government: Federal government (N174.908 billion), States (N88.716 billion), local governments (N68.396 billion), and 13 oer cent oil derivation (N44.286 billion).
Also, the sum of N12.450 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three tiers of government with the federal government receiving N1.793 billion, states got N5.976 billion, local government councils N4.183 billion, while N0.498 billion was allocated for cost of collection.

The sum of N364.869 billion from Exchange Difference, which saw the federal government receiving N175.817 billion, the states got N89.177 billion, the sum of N68.751 billion allocated to local governments, and N31.124 billion for 13 per cent derivation.
Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), VAT, and Oil and Gas Royalties increased considerably, while Customs External Tarrif levies (CET), Electronic Money Transfer Levy (EMTL) and Import Duty recorded decreases.

According to the Communique, the total revenue distributable for the current month of November 2023, was drawn from Statutory Revenue of N376.306 billion, VAT- N335.656 billion; N11.952 billion from EMTL, and N364.869 billion from Exchange Difference, bringing the total distributable amount for the month to N1,088.783 trillion.

In his opening remarks at the meeting, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the President Bola Ahmed Tinubu-led administration was committed to achieving rapid and sustained economic growth in the country.

He added that the Gross Domestic Product (GDP) per capita in Nigeria was increasing and getting many people out of poverty.

Edun, commended FAAC members for their support and cooperation within the year, noting that, “It is a team work and a joint effort.”

He also appreciated the government and people of Delta State for successfully hosting the 2023 Retreat of the Federation Account Allocation Committee members.