According to the Central Bank of Nigeria's (CBN) international payment data, remittances in the first nine months of 2024, amounted to $1.54 billion, a 16.7% decline from $1.85 billion recorded in the same period in 2023. Remittances refert to amounts sent by individuals working abroad to support their families and loved ones in their home country. The decline in remittances may be attributed to several factors, including a weak global economy, and a weak domestic currency. Over the last decade, remittance inflows played an important role in the Nigerian economy. Remittances help households with members in a foreign country to meet basic expenses such as education and healthcare. It is also an important source of foreign currencies and contributes to the country’s foreign exchange reserves. Beyond substistence purposes, remittances are also channels into productive investments, in turn, bolstering economic growth. While the government might have limited influence on the global economy, government policies aimed at improving the domestic business environments could help reverse the declining trend of remittances. 

According to the National Bureau of Statistics data, the cost of a healthy diet (CoHD) for September 2024 was N1,346 per adult per day, a 7.3% increase from N1,255 in August. The CoHD represents the most affordable mix of locally available foods that satisfy global dietary guidelines. It estimates that an adult would need to spend about N1,346 daily to maintain a nutritious diet. The increase indicates growing concerns about affordability as Nigerians face rising cost challenges while trying to maintain their dietary requirements amid inflationary pressures. Regional analysis revealed the South-West had the highest CoHD at N1,598 while the North-West had the lowest at N1,144. At the State level, Osun had the most expensive CoHD at N1,661, while Katsina had the least expensive CoHD at N1,043. The cost of a nutritious diet has increased more rapidly since July 2023, signalling pressure on items included in a healthy diet. The main factors contributing to the increase in CoHD are legumes, nuts, seeds, starchy staples, and animal-source foods, alongside issues in the supply chain, the cost of food production, and rising demand for nutritious food. Monitoring CoHD offers insights into inflation dynamics specific to essential food as high CoHD could guide interventions in nutrition. For example, improving supply chains for costly food groups or boosting agricultural production could reduce costs. These data-driven strategies could enhance food security and support access, especially in high-cost regions or food categories.

According to the National Bureau of Statistics' recent Transport Fare Watch report, the average fare paid by commuters for bus journeys within cities per drop increased by 3.45% month-on-month (MoM), from N869 in August to ₦899 in September 2024. Similarly, the average fare for intercity bus journeys per drop rose by 0.22% MoM, from ₦7,159 in August 2024 to ₦7,175 in September 2024. On a year-on-year basis, intercity fares increased by 21.26% from ₦5,917 in September 2023. Air travel fares also recorded a 0.8% MoM increase, rising from N123,700 in August to ₦"124,693 in September 2024. The fare for Okada (motorcycle) transport, saw a 1.4% MoM increase, from ₦524 in August 2024 to ₦532 in September 2024.This consistent rise in transport fares is primarily due to the removal of fuel subsidies, which led to higher fuel and energy-related costs. Additionally, rising insecurity on major roads has further contributed to increased transport costs, as drivers often avoid these routes or incur additional expenses for security measures. Rising transport costs could lead to an increase in the price of goods and services transported interstate over long distances. Likewise, rising transport costs would reduce the purchasing power and disposable income of the average Nigerian. To address these challenges, the government should consider stabilizing fuel prices, strengthening public transport infrastructure, and enhancing security measures to protect lives and property on major roads across Nigeria

Governments allocate public funds toward social goods and services as an essential component of provision of public goods and economic planning. This is facilitated through public procurement, which is the process through which the government acquires works, goods, and services from the private sector. The estimate among OECD countries shows that public procurement accounts for a 12.9% share of the Gross Domestic Product (GDP) in 2021. In developing countries, public procurement was estimated to be around 30% of the GDP and represented more than 30% of total government spending before the outbreak of the COVID-19 pandemic. In 2016, the annual expenditure on procurement in Nigeria was estimated to range from 10% to 25% of GDP.

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This brief was first published by Brookings

Highlights

1) Mobilising diverse climate finance resources and investments to support Africa’s energy transition will address the continent’s energy access challenges.
2) Sustainable governance is critical to driving climate policy initiatives and projects, which cost approximately $2.8 trillion from 2020 to 2030. Furthermore, there is a $200-$400 billion climate funding gap in Africa from feasible debt swaps with the continent losing up to 15 per cent of its GDP per capita annually to climate change.
3) Infrastructure governance can drive innovation and climate action, potentially unlocking significant climate finance and investments for Africa’s energy transition.
4)  A set of crucial policy considerations for unlocking finance climate goals sustainably. A series of vital policy considerations, including the establishment of robust legal regulatory frameworks, are essential for achieving climate goals and unlocking sustainable finance.

Authors: Oluseyi Aladesanmi, Evelyn Dan Epelle, Priscilla Airohi-Alikor

Artificial Intelligence (AI) is transforming industries, governance, and societies, offering immense benefits in efficiency and economic growth. Although AI continues to impact various sectors globally by driving innovation, it also raises complex regulatory challenges. The rapid advancement of AI raises significant ethical, social, and economic risks, including data privacy violations, job displacement, and bias in decision-making. Thus, there is an urgent need for effective AI regulation as governments and international bodies grapple with balancing innovation with safeguards to protect individuals and society.

Authors: Uche Anyamele Ph.D, Tikristini Olawale and Onyinye Onuh

In October 2024, the inflation rate (CPI) rose to 33.80%, up from 32.70% recorded in September 2024, marking a 1.18 percentage point increase from the previous month. This increase also extended to food inflation, which saw a rise reaching 39.16% from 37.77% recorded in September, indicating a 1.39 percentage point increase. Urban inflation also saw a rise, climbing to 36.38%, while rural inflation rose to 31.59%, representing month-on-month increases of 1.24 and 1.10 percentage points, respectively. Notably, the country's foreign reserves aslo saw a monthly average rise of 1.20%, reaching a total of $40.26 billion.

According to the Liquified Petroleum Gas (LPG)/Cooking Gas Price Watch of the National Bureau of Statistics (NBS), the average retail price for refilling a 5 kg cylinder of liquefied petroleum gas (cooking gas) increased by 4.19% month-on month from N6,430.02 in August 2024 to N6,699.63 in September 2024. However, it rose by 59.90% year-on-year when compared to N4,189.96 in September 2023. Zonal analysis revealed that the North-East had the highest price for refilling a 5-kg cylinder of cooking gas at N6,929.02, followed by the South-East at N6,893.47 and the North-West at N6,382.30. At the state level, Rivers recorded the highest average price for refilling a 5-kg cylinder of cooking gas at N7,271.88 and Borno at N7,089.72. Conversely, Kebbi had the lowest price at N5,950.00, with Kano at N6,133.33 and Benue at N6,143.52. Unchecked inflation negatively impacted the price increase. The rising cost of cooking gas significantly challenges the livelihood of Nigerians, necessitating government intervention to lessen the burden on low-income households. Specifically, there is a significant need for increased support for local gas production, a reduction in taxes and levies on local gas production, and the promotion of alternative cooking energies sources for households.

This paper examines the relationship between social assistance, violent conflict, and intersecting crises, and considers how social assistance can help offset erosive forms of coping that could otherwise drive poverty and food insecurity. To investigate these issues, the study draws on newly collected household data covering 1,000 survey respondents in 2023 from the Konduga and Maiduguri Municipal Council local government areas in Borno, Nigeria. Borno has been an epicentre for violence over the past 15 years, and has experienced a range of intersecting crises.

Study findings indicate that 43 per cent of households experienced disruptions to income or agriculture, or asset loss, either due to conflict, flooding, or drought. Of these households, 41 per cent reported that more than half of their income source was lost. Despite the negative effects of crises, only 1 in 10 households received social assistance in the year preceding the survey, mainly through non-governmental organisations. This indicates that social assistance is simply not getting through to the people who need it. Perhaps as a result, households are increasingly drawing on negative and even erosive forms of coping – for example, by being less able to save, less able to make investments, and increasing reliance on loans that together could drive downward mobility. The paper concludes with broad-brush implications for social assistance programmes to become more effective amidst violence and climate-related disasters

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