Nigeria’s National Bureau of Statistics (NBS), what is going on? You mean inflation in Benue was 51%, Ekiti 34%, and Kebbi 33% when Ebonyi, Adamawa, and Ogun respectively recorded 7.19%, 9.52%, and 9.91%? So, you are telling me that the delta between Benue and Ebonyi is more than 40% in your inflation computation? In the same Nigeria even though Benue is the food basket of the nation?
Looking at your numbers, things are flying all over the place; Ekiti at 34% while Ogun is sub-10%. Are the two states really that heterogeneous in composition for that level of deviation? I mean there is no order! Please look at your data and methodology again. The numbers with all due respect do not make any sense, and we must not have PhDs in Economics to arrive at that conclusion.
On inflation, I call on the Central Bank of Nigeria bank to also do something new: instead of raising rates to lower inflation in Nigeria, lower interest rates to boost production and supply. I guarantee you that if you lower interest rates in Nigeria, you will improve the Supply side in the market, and if that happens, inflation will drop. Our inflation is driven by low supply, and when we raise rates, we reduce supply [higher productive cost depresses supply] even though the policy has no impact on Demand since our consumer lending is largely nonexistent. If you cannot try it across Nigeria, use Ovim, and you will see how inflation will drop in Oriendu Market.
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Good People, rate hike works in America/Europe where there is a developed consumer credit system. In Nigeria, we use “cash”, and rate hikes have limited impacts on demand (consumer spending). What rate hikes do in Nigeria is to increase the cost of production (via higher interest rates on bank loans to companies) which ends up reducing Supply of goods, with the unfortunate impact of pushing inflation higher
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