Disinflation Continues In April

May 2007 | Market Strategy

Judging by the latest inflation data, the Nigerian economy remains on a path of stabilisation. Fears of a marked loosening of the fiscal purse strings in the run up to the recent elections - and attendant strengthening of liquidity sloshing around the economy - have been allayed. But the run up in militant activity and pipeline sabotage in the Niger delta ahead of the 29 May transition, when President Olusegun Obasanjo hands over power to his successor Umaru Yar'Adua, serves to exacerbate already debilitating energy shortages - with potential inflationary implications.

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