Bismarck Rewane Predicts Decline in Food Prices by September 2024.

According to Bismarck Rewane, the Chief Executive Officer of Financial Derivatives, food prices in Nigeria should begin to decline by September 2024. This was revealed by the well-known economist in a Tuesday interview with Channels Television. 

Rewane stated that September is when inflation is likely to start to decline in response to the Central Bank of Nigeria's recent interest rate hike to 26.75 percent. At the end of the year, he projected a slight decrease in Nigeria's inflation from 34.19 percent to between 32 and 28 percent.

He claims that the new N70,000 minimum wage, the 150-day zero import food program, and the Dangote Refinery's August opening will all have an effect on inflation.  In the foreign exchange market, he continued, it is anticipated that the value of the Naira will rise in relation to the dollar in the upcoming months.  

“This is the inflation spiral. The inflation was increasing sharply, started stagnation now and it is expected to start falling. When I said falling it is not significant. From 34.19 to about 32 percent towards the end of the year to about 28 percent.

“One of the major stocking factors is logistic cost. It is a good thing that Alhaji Aliko Dangote has come to the rescue. Another thing, now it is a law, N70,000 is the new Minimum wage.

“What does all of this mean to the ordinary man? What we are seeing is that prices of food commodities will drop or are expected to drop if nobody corners it. Rice for example, the current price is N82,000 and will come down to N70,000 by September, Wheat from N59,000 to N50,000, and Beans from N150,000 to N110,000.

“Food import duty waiver will tamper inflation. Dangote Refinery Fuel product will come on August 15th, it will guarantee supply not price.

“The new Minimum wage will impact inflation only marginally. High interest rates will help increase savings. The Naira will recover from N1,700 per dollar to N1500 in September”, he said.

In an effort to combat growing core and food inflation, which reached 34.19 percent and 40.87 percent in June 2024, the CBN raised inflation on Tuesday by 50 basis points to 26.75 percent. This was in response to President Bola Ahmed Tinubu's government announcing plans to halt food import duties for 150 days.