Nigeria’s inflation drops to 13.34% in March

Nigeria's annual inflation rate saw a significant decline to 13.34 percent in March, marking its lowest level in two years. Bismarck Rewane, CEO of Financial Derivatives, recently joined CNBC Africa to provide insights into the latest numbers. Rewane highlighted the importance of various factors influencing the inflation rate, such as food inflation dropping from 17.5% to 16% and core inflation standing at 11.2%. He emphasized the positive real returns on investments, with a 90-day treasury rate of 12% yield compared to a coin inflation rate of 11.2%. Rewane also discussed the necessity of stimulating growth and economic activity by lowering interest rates to drive productive outcomes. He pointed out that despite the current trends, with inflation not projected to decline sharply in the coming months due to rising prices of essential commodities like rice, garri, and flour, proactive measures are required to boost economic activity. Additionally, he predicted a potential increase in wages across the board following a minimum wage review, coupled with an expected growth in money supply and fiscal deficit, which could impact inflation levels.