SmartPreneur
Advertisement
  • Home
  • Trending News
  • Brand Insights
  • Profiles
  • Hustle Life
  • Weekend Teaser
  • Radio
  • TV
  • Games & Quizzes
No Result
View All Result
  • Home
  • Trending News
  • Brand Insights
  • Profiles
  • Hustle Life
  • Weekend Teaser
  • Radio
  • TV
  • Games & Quizzes
No Result
View All Result
SmartPreneur
No Result
View All Result
Home Ask an Expert

How galloping inflationary pressure is affecting SMEs in Nigeria

Contributor by Contributor
May 18, 2022
in Ask an Expert
0
How galloping inflationary pressure is affecting SMEs in Nigeria
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on Whatsapp

The National Bureau of Statistics (NBS), the primary source of economic and social data in Nigeria, released the Consumer Price Index (CPI) report for April 2022.

Join our communityJoin our communityJoin our community

This report gives an indication of the level of inflation in the country, and according to the NBS, the inflation rate rose to 16.82% in April 2022, representing an increase from the 15.92% recorded in the preceding month. Notably, this is also the highest rate of inflation recorded in Nigeria since September 2021.

A deep dive into the report shows that the two components of the inflation basket: the food and core index, recorded significant upward movements in the month under review. Food inflation increased to 18.37% from the 17.2% figure recorded in March 2022, while the core inflation, which excludes volatile agricultural produce, rose to 14.18% from the 13.91% figure recorded in the previous month.

On a month-on-month basis, the food index increased by 2%, while the core index recorded a 1.22% month-on-month uptick. A further breakdown of the report showed that the rising core inflation was driven by increases in the price of gas, liquified fuel, cleaning, repair and hire of clothing, clothing materials, other articles of clothing, and clothing accessories. Concurrently, the rise in the food index was caused by increases in the price of bread and cereals, food products, potatoes, yams, wine, fish, meat, and oils.

Meanwhile, the rising price of goods and services has been a major bane in the Nigerian economy with the average citizens finding it hard to keep up with the upsurge in the price of things. Similarly, businesses now have to spend more on petrol to fuel their generators, while increased electricity tariffs and transportation costs have also contributed to rising operating costs. This has forced many SMEs to either reduce their profit margins or shift the extra costs to the customers, thereby causing further rises in prices.

How businesses and individuals are coping

  • Individuals looking to hedge against inflation in recent times have tried to earn in foreign currencies since the naira is faced with constant depreciation against other currencies.
  • Frontloading costs is also a strategy that has been adopted by individuals and businesses. This typically means buying items that are needed in the future at the earliest possible time, with the projection that the prices would rise eventually.
  • Businesses are shifting the burden of rising costs to the consumers.

Why is this important?

The inflation rate is one of the major indicators used in measuring the health of any economy and Nigeria’s inflation rate is showing a galloping rise in the price of goods and services. Typically, when there is a rise in the inflation rate, savings are usually affected as expenses increase.

For some people, this is the time to cut costs by prioritising their needs while for others, it is a time to increase their earnings either by having more jobs or increasing the cost of their services.

Tags: InflationSmartpreneurSME matters
Previous Post

Dana airline cancels flight as aviation fuel scarcity looms

Next Post

Entrepreneurship: Trustworthy Sources of Funds and their Requirements

Contributor

Contributor

Related Posts

Buy-Now-Pay-Later: Help your customers buy what they need NOW
Weekend Teaser

Buy-Now-Pay-Later: Help your customers without crippling your financials

by Ruth Okwumbu-Imafidon
December 9, 2022
0

Have you had conversations with a lead or prospective customer, only to have him or her freeze when it is...

Read more
5 Core Leadership qualities a first-time entrepreneur should have
Hustle life

5 Core Leadership qualities a first-time entrepreneur should have

by Ruth Okwumbu-Imafidon
December 1, 2022
0

Starting a business is hard work, even more so when you are doing it for the first time. Serial entrepreneurs...

Read more
Projecting business growth in a financial model
Start

Tips for building the right financial model for your business

by Ruth Okwumbu-Imafidon
September 22, 2022
0

The ultimate guide to building a sustainable business is getting the right financial model suited for your business. But the...

Read more
The Right Steps To Take After Running An Ad
Grow

The Right Steps To Take After Running An Ad

by Contributor
August 26, 2022
0

When business owners complain about low sales, you hear recommendations like “why not run a campaign”, “run an advert campaign”...

Read more
Guidelines for Effectively Running a Dairy Product Company in Nigeria – Advice from Tolu Samaiye, Founder of Melting Moments Dairy Ltd.
Ask an Expert

Guidelines for Effectively Running a Dairy Product Company in Nigeria – Advice from Tolu Samaiye, Founder of Melting Moments Dairy Ltd.

by Blessing Osazuwa
July 25, 2022
0

Dairy products are food products that are made essentially from milk such as yoghurt, gelato, cheese and more. All over...

Read more
Fish farming in 2022: Expert Advice, Best Practices and Profit-Making
Ask an Expert

Fish farming in 2022: Expert Advice, Best Practices and Profit-Making

by Blessing Osazuwa
June 17, 2022
0

In an exclusive chat with Bello Abdullahi, an experienced fish farmer based in Kaduna, Nigeria, Smartpreneur got insights into how...

Read more
8 Surefire Steps to take to Launch a Successful Media Company
Ask an Expert

8 Surefire Steps to take to Launch a Successful Media Company

by Contributor
June 8, 2022
0

Hello smartpreneur! Looking to explore opportunities in the media industry and launch your own company? Here are 8 great tips...

Read more
Load More
Next Post
Sources of Funds in Nigeria

Entrepreneurship: Trustworthy Sources of Funds and their Requirements

Please login to join discussion

Recent News

7 Things to Normalize in Your Daily Business Operations

7 Things to Normalize in Your Daily Business Operations

March 29, 2023
Chinazom Arinze

How I saved my company from making a 30 million naira loss – Chinazom Arinze

March 29, 2023
Twitter will be removing Blue Ticks from April 1, 2023

Twitter will be removing Blue Ticks from April 1, 2023

March 29, 2023
How to build business partnerships that last a lifetime

7 things investors want to see in your Pitch Deck / Presentation

March 27, 2023
SmartPreneur

© 2020 SmartPreneur

Navigate Site

  • Home
  • Trending News
  • Radio
  • Games & Quizzes
  • TV

Follow Us

No Result
View All Result
  • Home
  • Trending News
  • Radio
  • TV
  • Hustle Life
  • Brand Insights
  • Profiles
  • Game & Quizzes
  • Weekend Teaser

© 2020 SmartPreneur