Bismark Rewane, a renowned economist and member of the Presidential Economic Coordination Council, has expressed alarm about the increase in the cost of tomatoes in Nigeria, which has climbed from N40,000 to N150,000 per bag in a year.
Rewane, who is also the Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, stated this on Wednesday while presenting economic scorecards and metrics in commemoration of President Bola Tinubu’s one year in office.
Speaking live on Channels Television, Rewane said the rise in food inflation has continued to increase the suffering of the people during the reviewing period.
Rewane said: “How does this affect you? In Inie and Jeffrey, a bag of rice cost N35,000 last year; today, it’s N80,000, an increase of 129 per cent. Garri was N28,000 last year; it’s now N50,000. Beans were 30,000 last year; now, it’s N95,000, up by 217 per cent. A loaf of bread was N900; now it’s N1,600. A tuber of yam was N2,000; now it’s N10,500. The big problem is tomatoes: last year, N40,000 per bag; now it’s N150,000.
“Non-food basket items: A night bus from Lagos to Abuja was N20,000 last year; now it’s N33,000, up 68 per cent. Toiletries were N300; now it’s N500, up 67 per cent. A flight from Lagos to Abuja was N38,000; now it’s N80,000, up 111 per cent. Lagos to London flights dropped from N2.6 million to N1.4 million.”
Rewane stated further that the rise in headline inflation, and food prices in particular, exacerbated the prices of food across the country.
“Before, we were growing at 2.91 per cent. This year, we are now growing at 2.87 per cent, so our growth has declined by 0.04 per cent. Headline inflation was 22.41 per cent when President Tinubu took office. It is now 33.69 per cent, so it has deteriorated by 11.28 per cent.
“Food inflation was 24.82 per cent; it is now 40.53 per cent. It has deteriorated by 15.71 per cent. The exchange rate on May 29 last year was N765 to a dollar in the parallel market. Today, it’s at N1,520, essentially doubling and declining by 100 per cent. The difference between the parallel and official market rates was N295 to a dollar last year; today, it’s N346 due to recent adjustments.
“The price of diesel was N840 per litre last year; today, it’s N1,200, although it had reached N1,700 before Dangote brought it down to N1,200, an increase of 43 per cent. Petrol (PMS) was N190 per litre, highly subsidized; today, it’s N580 in most parts of the country, even N617, increasing by 205 per cent. Efforts were commendable, but outcomes were average,” he noted.
Rewane added that one of the positive developments during the period was the marginal increase of 11 per cent recorded in oil production.
He also lauded the appreciable metrics recorded in external debts, Federal Allocation Committee, and external debt per head as a result of the subsidy removal within one year in office of President Tinubu.
He said, “We were producing 1.15 million barrels per day last year. Now, it’s 1.28 million barrels, a marginal increase of about 11 per cent. The total Federal Allocation Committee shared N10.92 trillion last year, which has increased to N14.39 trillion due to subsidy removal and reduction, a 31.78 per cent increase.
“Total external debt was $42.7 billion last year; today, it is $42.5 billion, a slight improvement. External debt per head was $179 per Nigerian last year; now it’s $178 per head. Gross external reserves were $35 billion last year, dropping by 7 per cent to $32 billion. The minimum wage was N30,000 per month last year, and it’s now open to debate.”
Speaking on the economic impact and unintended consequences, Rewane said, “The gross fixed investment, which drives growth, was $154 billion last year; it is now down to $105 billion, a 31 per cent decrease. Stock market capitalization was N30 trillion last year, now it is N55 trillion, an 83 per cent increase, benefiting investors.
“National savings as a percentage of GDP decreased from 33 per cent to 29 per cent. Life expectancy improved from 55.8 years to 56.1 years. Ships waiting at Nigerian ports increased from 12 to 15, a 25 per cent improvement. Grid collapses reduced from 12 times last year to five times this year.”
Based on metrics, the renowned economist also categorized his economic reviews into three broad views.
He said, “So, we have the good, the bad, and the ugly. The good: Tax and other revenues have more than doubled; FAAC increased to N14.39 trillion; Dangote Refinery and other modular refineries commenced operations; Forex backlog cleared by over half; credit rating upgraded to B; oil production increased to 1.34 million barrels per day; and international fares reduced.
“The bad: Nigeria fell from the 32nd largest economy in the world to 42nd; in Africa, from 1st to 4th; inflation increased from 24% to 33%; public debt rose to N97 trillion.
“The ugly: Terrorist attacks continue; power grid collapses persist; multinationals like Procter & Gamble exited; the cost of living crisis persists; food inflation is rising, driven by post-harvest losses, insecurity, and poor storage.”
In March this year, Bismark Rewane was among the appointed members of President Bola Tinubu’s Economic Management Team Emergency Taskforce (EET) with a mandate to formulate and implement a consolidated emergency economic plan.