Nigeria’s inflation driven by transportation cost – Finance minister

The Minister of Finance, Budget and National Planning, Zainab Ahmed, said on Friday inflation rate in Nigeria was largely driven by the cost of transportation.

The minister, who stated this at a virtual consultation and stakeholder engagement on the economic and fiscal policy drivers underpinning the Finance Bill 2020, said the draft bill sought to reduce transportation cost in the country.

She said the bill contained some interesting new proposals including the fiscal relief which was designed to provide support for transport operators by reviewing the duties regime.

Ahmed said: “The essence why this is being done is we recognise transportation as one of the major cost drivers in the economy.

“If you look at the rate at which our inflation is going, and you disaggregate the components, you will find that inflation is largely driven by transport cost. So, the essence here is to reduce transportation cost so that businesses will have ease and pass benefits to eventual consumers.”

READ ALSO: Buhari signs Finance Bill 2019 into law

Transportation costs had increased significantly in many parts of the country lately due to the hike in pump price of petrol.

The Petroleum Products Marketing Company (PPMC) on Friday increased the ex-depot price of petrol from N147.67 per litre to N155.17.

The development forced the Independent Petroleum Marketers Association of Nigeria (IPMAN) to direct its members to start selling the product from a price range of N168 per litre to N171 per litre.

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