Dear Subscriber,

Re: Inflation eases but prices are still high

Nigeria’s August inflation data will be released tomorrow morning and is expected to slide below 17%. You should be thrilled at the news but you will not be so pleased when you go to the market and you will be buying bread at N600 per loaf and pepper at N30,000 per 50kg bag. But the trend of falling inflation is comforting for now. In the last 4 months, we have had a slight moderation in food prices but not enough to be noticed.

FG okays 5G deployment in Nigeria

The federal government’s approval of the use of 5G technology in Nigeria will increase CAPEX in the sector and improve mobile and broadband connectivity. It would also allow Nigeria play catch up with other countries across the continent that have long adopted the high-speed internet service spectrum. However, constraints in certain parts of the country due to terrorism have compelled the FG to shutdown base stations (Zamfara state) and prohibit commercial phone-charging (katsina), bringing all mobile and internet dependent activities in this to a halt.

Stanbic IBTC’s purchasing managers’ index slows to 52.2 points

The Q3 GDP growth report will be released in November and the good news is that the growth trajectory is expected to continue, albeit at a slower pace. Meanwhile, the Stanbic IBTC Purchasing Managers’ Index (PMI) fell by 5.78% to 52.2 points in August from 55.4 points in July. The decline was driven by weak consumer purchasing power and currency pressures. We expect the increase in Covid-19 vaccinations to improve consumer demand and boost manufacturing sector activity. This will keep the PMI for September above 52 points, making it an effective instrument for analyzing and forecasting changes in monetary policy decisions.

This edition of the Unity Bank Digest, as usual, provides you with an intriguing lifestyle piece, recent economic news and interesting social stories.

Enjoy your read!