Business
Japan inflation quickens to over five-year high, output rebounds
TOKYO – Japan’s core consumer inflation rose at the fastest pace in more than five years in December and the job market improved, encouraging signs for the Bank of Japan as it seeks to vanquish deflation with aggressive money printing.
Factory output also grew in December and manufacturers expect to keep increasing production, although some analysts fret about potential damage from the recent turmoil in emerging markets.
The data points to an economy that continues to pick up momentum on strong domestic demand. However, BOJ Governor Haruhiko Kuroda expressed some caution about export demand as many of Japan’s Asian trading partners remain weak.
“The core consumer price index was stronger than expected, and durable goods prices seem to be rebounding. Consumer prices will likely continue moderate growth,” said Junko Nishioka, chief economist at RBS Securities.
“I think the BOJ is unlikely to adopt additional easing because there is no reason to justify it given the positive macro-economic environment.”
Core consumer prices (CPI), which excludes fresh food but include energy costs, rose 1.3 percent in December from a year ago, data showed on Friday, just above a median market forecast for a 1.2 percent gain.
That followed a 1.2 percent increase in November, and marked the fastest annual gain since 1.9 percent in October 2008, data from the Ministry of Internal Affairs and Communications showed.
Last year, Japan’s core consumer prices rose 0.4 percent, the first increase in five years.
In a further sign price gains are broadening, the so-called core-core inflation index, which excludes food and energy prices and is similar to the core index used in the United States, rose 0.7 percent in the year to December, matching a high hit in August 1998.
Japan’s industrial output rose 1.1 percent in December, suggesting that robust domestic demand is underpinning the economy as consumers rush to beat a national sales tax hike in April. This is making up for soft exports to emerging markets.
The rise roughly matched a median market forecast of a 1.2 percent increase, and followed a 0.1 percent drop in November.
The jump in output is a welcome sign for the world’s third-largest economy, which has steadily recovered over the past year on the back of Prime Minister Shinzo Abe’s massive fiscal and monetary stimulus policies.
Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to rise 6.1 percent in January and increase 0.3 percent in February, data showed on Friday.
Robust domestic demand, coupled with a weak yen that inflates import costs, helped Japan pass the halfway mark toward achieving the BOJ’s 2 percent inflation target.
However, a recent selloff in emerging market stocks and currencies has reminded investors that Japan still faces risks that a renewed downturn in overseas economies will sap demand for Japanese goods.
“One reason Japan’s exports have struggled to pick up momentum is that emerging ASEAN countries that Japan has a close relationship with have not recovered as quickly as expected,” Kuroda told lawmakers in parliament.
“These economies are expected to recover, but we cannot say this will apply to every case.”
Kuroda has expressed confidence that prices will reach the bank’s target in the two-year timeframe it pledged when adopting an aggressive stimulus policy in April.
But many analysts remain skeptical on whether price growth will accelerate from here, worried about an expected slump in consumption after the tax hike and the fading boost from the weak yen to prices.
Annual wage negotiations, which take place in the spring, will be an important test of whether labor unions can secure higher salaries needed to help consumer spending weather the tax increase.
An International Monetary Fund official said Japan’s economy is likely to take longer than the target two-year timeframe to reach the inflation goal, even though prices are rising steadily.
– REUTERS
The acquisition of an additional 40 percent interest in ND Western Limited, has seen Aradel Holding grow its total assets by a whopping 466 per cent to N9.9 trillion in the 2025 financial year.
Biztellers reports that the transaction conferred majority shareholding on Aradel, as its equity stake in Renaissance rose to 53.3 percent.
According to the energy company, the transaction, completed on December 31, 2025, also significantly expanded its reserves, production base and operational footprint, leading to a sharp increase in the size of its balance sheet.
Going by its audited results for the year ended December 31, 2025, total assets rose from N1.75 trillion in 2024 to N9.9 trillion, reflecting the consolidation of ND Western’s assets and liabilities and the carrying value of Aradel’s effective interest in Renaissance.
The company also reported a 192 percent increase in profit after tax to N757.3 billion from N259.1 billion in the previous year, while revenue rose by 20 percent to N699.4 billion from N581.2 billion.
In the same vein, operating profit increased by 152 percent to N733.6 billion from N291.4 billion, while earnings from associates rose by 246 per cent to N109.5 billion.
Aradel noted that the operational and income statement figures for 2025 do not include contributions from the newly acquired businesses because the transactions were completed on the last day of the financial year. It said only the balance sheet impact was consolidated as of December 31, 2025, while the full operational and earnings contributions are expected to be reflected from 2026.
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On the results, Chief Executive Officer, Adegbite Falade, said, “2025 was a defining year as we continued to strengthen our position as an integrated energy operating platform. We delivered record revenue and profitability, while executing the most transformational strategic expansion in our history.
Our additional 40 percent investment in ND Western and the resultant increase in our total effective interest in Renaissance (53.3 percent) significantly expanded our reserves, production base and operational footprint, positioning Aradel to operate at materially greater scale from 2026 onwards.”
On operations, crude oil production rose by three per cent to 14.1 thousand barrels per day from 13.8 thousand barrels per day in 2024, while gas production increased by 59 percent to 51.4 million standard cubic feet per day from 32.4 million standard cubic feet per day.
The company recorded crude oil sales of 4.1 million barrels during the year, up 32 per cent from the previous year, while refined product output increased by 18 percent to 313.4 million litres. Refinery utilisation improved to 49 percent from 40 percent in 2024. Gas revenue increased by 72 percent to N48.6 billion, while refined products revenue rose by 18 percent to N210.8 billion. Crude oil exports remained the largest revenue source, contributing N440.1 billion, or 63 percent of total revenue.
The company reported net cash generated from operating activities of N179.7 billion, compared with N311.9 billion in the previous year, while cash and cash equivalents rose to N1.5 trillion at the end of the period from N411.8 billion a year earlier.
Aradel’s board proposed a final dividend of N23 per share, bringing the total dividend for the 2025 financial year to N33 per share, compared with N26.4 per share paid for 2024.
Falade said the company would focus on integrating its expanded asset base, increasing production and diversifying revenue streams. “The consolidation of NDW and Renaissance fundamentally reset the scale of the Company’s balance sheet, giving us the asset and reserve base to underpin our future expansion. Our 2025 audited accounts therefore capture the balance-sheet impact of these acquisitions; their full earnings contribution will be reflected in the Group’s consolidated financial results from 2026 onwards.”
Reports that Iran has shut the strategic Strait of Hormuz, a strategic international shipping route again has sparked fresh concerns over global oil prices.
This latest shutdown comes barely 24 hours after it was reopened on the heels of a ceasefire arrangement with the United States.
According to a New York Post report which quoted the Islamic Revolutionary Guard Corps (IRGC), Iran cited a continued presence of United States forces in the region and Israel’s refusal to pull military forces out of southern Lebanon, where it had been pounding Hezbollah terrorists.
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The IRGC said the US violated the memorandum of understanding between Washington and Tehran, which President Donald Trump and Iranian President Masoud Pezeshkian signed last Wednesday.
The latest development has revived fears of disruptions to global crude oil supplies and a fresh rally in international oil prices, a scenario that could shake Nigeria’s downstream petroleum market.
The Strait of Hormuz remains one of the world’s most critical energy corridors, serving as the transit route for nearly a fifth of global oil consumption.
Any disruption along the waterway typically triggers nervous reactions in oil markets and raises concerns over energy security.
Industry observers warned that a prolonged closure could push crude oil prices higher, increase the cost of imported petroleum products and ultimately force a fresh upward adjustment in petrol prices across Nigeria.
For many Nigerians already grappling with high transportation and living costs, another spike in fuel prices would deepen existing economic pressures.
Osun State Governor, Senator Ademola Adeleke has expressed the state government’s desire to tap into the National Halal Economic Strategy (NHES) of the Federal Government.
According to a government house statement in Osogbo over the weekend, it would do so by creating a state’s policy and implementation plan within the federal strategy.
Gov Adeleke made the assertions, at the National Economic Council (NEC) meeting in Abuja on Thursday, where he commended the federal initiative on Halal economy, calling it “a timely step to tap into the multi trillion dollar Halal economy that is already integrated into western and global economy”.
The governor who called for a subnational template for halal implementation assures that his administration will set up an halal economy committee to adapt the federal template and create a state programme for implementation.
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He said the Halal economy has the potential to expand and deepen the Osun economy as its applications cuts across all economic sectors and is also open to multi-faith beneficiaries.
“I commend President Bola Tinubu for this initiative. Osun will work on an implementation plan to benefit all residents and indigenes. Halal economy covers financing, dietary requirements, infrastructure and ethical conduct in business relations”, the governor noted.
It would be recalled that Vice President, Kashim Shetimma had unveiled the national halal economic strategy, informing that the Strategy is “the result of careful study and sober reflection inspired by the commitment of the administration of President Bola Ahmed Tinubu “to diversify exports, attract foreign direct investment, and create sustainable jobs across the federation.
“It is also the product of deliberate partnership, developed with the Halal Products Development Company, a subsidiary of the Saudi Public Investment Fund, alongside Dar Al Halal Group Nigeria, with technical backing from institutions such as the Islamic Development Bank and the Arab Bank for Economic Development in Africa,” he added.
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