Business
Inflation Erodes Workers’ N25trn Salaries …As Naira Depreciates Further
The Nigerian Bureau of Statistics (NBC) latest data report has disclosed that endless depreciation of the naira and the rising inflation have eroded Nigerian workers’ N24.88trillion salary received in the first six months of 2022.
NBS in the data stated that the salaries of workers in the Nigerian formal sector increased from N21.80trillion in the first six months of 2021 to N24.88trillion in the corresponding period of 2022, representing a N3.08trillion increase within the period.
When adjusted for inflation, the NBS data on employees’ compensation revealed that there was only a N550.97billion increase in real terms, signifying that not only was the N3.08trillion increase in salary eroded, but the total salary of nearly N25trillion also depreciated.
Further scrutiny of the data revealed that the compensation of employees at 2010 purchaser’s value was N10.71trillion in the first six months of 2021, which marginally increased to N11.26trillion in the corresponding period of 2022.
Explaining compensation of employees, the NBS said, “This consists of the total remuneration of employees in the formal sector, including both wages and salaries, and benefits in kind (such as pensions).
“In the 1st and 2nd quarters of 2022, compensation of employees grew by 6.48 per cent and 3.93 per cent respectively in real terms year on year.
“These growth rates were lower than 1st and 2nd quarters of 2021 rates recorded at 9.26 per cent and 19.44 per cent respectively. On a quarter-on-quarter basis, the compensation of employees in real terms, fell by 13.25 per cent in the first quarter and grew by 7.22 per cent in the 2nd quarter of 2022.
“In nominal terms, compensation of employees grew by 14.30 per cent and 13.95 per cent in 1st and 2nd quarters of 2022 respectively. The nominal quarter-on-quarter growth rates of -6.86 per cent in first and 8.09 per cent in the 2nd quarter of 2022 were recorded, higher than -8.33 per cent in first quarter 2021 and lower than 8.42 per cent in second quarter of 2021.”
Also, the International Monetary Fund (IMF), in their report, said naira had been losing 10.6 per cent of its value annually since 1973. One dollar was about N535 at the parallel market (the nation’s most accessible market for the dollar) as at November 2021, but it has since increased to over N750 in November 2022.
In its October inflation update, the NBS disclosed that the persistent depreciation of the naira had resulted in an increase in import costs. Nigeria is an import-dependent country, and according to experts, this will only continue to erode the purchasing value of the naira, leading to negligible real-time increases in personal income.
According to the World Bank, the devaluation of currencies like the naira was driving up food and fuel prices and could worsen food and energy crises.
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter