Godwin Emefiele, Governor of the Central Bank of Nigeria, Godwin Emefiele has attributed the country’s rising inflation to worsening insecurity and has therefore urged President Muhammadu Buhari’s regime to collaborate with relevant stakeholders to urgently address the country’s challenge.
The CBN chief stated this on Tuesday while presenting the communique from the Monetary Policy Committee (MPC) meeting, which started on Monday.
He explained that the inflation, which has increased for the 18th consecutive month, was exacerbated by food inflation. According to him, insecurity in many food-producing areas of the country was a major contributing factor.
“The MPC noted with concern the continued uptick in inflationary pressure for the 18th consecutive month as headline inflation continued on an upward to 17.33 per cent at the end of February 2021 from 16.47 per cent in January 2021. This increase continues to be attributed to both food and other core components of inflation.
“This specific uptick in food inflation was the major driving factor for the uptick in headline inflation. This was due to the worsening security situation in many parts of the country, particularly the food-producing areas where farmers faced frequent attacks by herdsmen and bandits in their farms,” he said.
The apex bank’s governor noted that while the bank was making significant intervention in the agricultural sector, the rising insecurity was limiting expected outcomes in terms of supply to the markets.
He added that the situation was a major contributory factor to the rise in food prices. He pointed out that the inflationary trend was also worsened by the hike in the petrol pump price, the upward adjustment of electricity tariff, and depreciation in the naira’s value.
He, however, commended the CBN’s various interventions for boosting food security through its various agriculture programmes.