Economists Disagree Over NBS Report On Inflation Decrease

Nigerian economists are divided over the December 2022 inflation report of the National Bureau of Statistics (NBS) .

The NBS released its inflation report which showed a deceleration in prices to 21.34 per cent, the first time in almost a year.

Prices fell lower compared to the 24.13 per cent rate held in November 2022. But prices rose compared to the 15.63 Posted in December 2021.

Nigeria’s inflation has frustrated the Central Bank of Nigeria whose core mandate is price stability forcing the bank to hike interest rate to 16.5 per cent in November.

But Nigerian experts who spoke to THE WHISTLER are divided on the report.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise [CPPE] and a former DG of the Lagos Chamber of Commerce and Industry, Muda Yusuf said the report reflected the realities of inflation in December 2022.

He said “Giving the laws of inflation, the December inflation report by NBS is true, it shows the slow rate at which the product price is increasing, which is why there was
a decline in inflation.

“However, a fall in inflation does not mean a fall in price of goods and commodities, giving the decline, the country’s inflation numbers are still very high and the government should put in more actions to curtail it.”

A professor of economics at the Olabisi Onabanjo University, Sheriffdeen Tella said the report was not realistic.

He said the cost of transportation during the December period was outrageous.

Tella said “The report is not true, although the number is still high as expected, I was surprised they said it went down because prices of things went up as a result of the high cost of transportation, so I do not think the report is true.

“Transportation was the major factor in the increase in price of goods due to a high price on fuel and diesel, rate of travels was high and demand was greatly higher than supply.

“December is always a tough month because of its festivity, that’s why I believe that December’s inflationary rate is supposed to be higher than that of November.”

Godwin Eohoi, an analyst and the Registrar of the Institute of Finance and Control of Nigeria told THE WHISTLER that the decline was anticipated following the policies of the CBN.

He said, “The decline is real because of what the Central Bank of Nigeria is doing in ensuring that they move up money from circulation through the currency design and deadline on old currencies of N1000, N500, and N200 that is currently ongoing.

“The CBN policy on personal and private withdrawal is going to be a catalyst for a fall in inflation in the country when handled with diligence and a corruption-free environment.”