Worsening Insecurity, Naira Devaluation Responsible For Rising Inflation—CBN

The Monetary Policy Committee of Central Bank of Nigeria on Tuesday said that the worsening insecurity situation in the country is responsible for the high inflation rate.

The CBN Governor, Mr Godwin Emefiele said this at the end of the Monetary Policy Committee meeting held at the apex bank’s headquarters in Abuja.

The worsening economic situation has driven Nigeria’s inflation to 17.33 per cent in February 2021 despite monetary intervention to contain the rates.

The National Bureau of Statistics while disclosing this stated that the February increase is the 18th consecutive rise since September 2019.

Over the past three months, Nigeria’s inflation had risen by 17.33 per cent, 16.47 per cent, 15.75 per cent

But speaking on the issues fuelling inflationary threat, Emefiele said that the insecurity in the country has affected the food producing region in the country thus causing farmers to abandon their farms.

Apart from the level of insecurity, he also said the increase in the pump price of Premium Motor Spirit caused by the deregulation of the petroluem sector as well as the devaluation of the Naira have all compounded the inflation situation in the country.

He said, “Worsening security situations has caused higher inflation which has affected the food producing areas and has limited the expected outcomes to the market.

“The hike in PMS, upward adjustment in electricity tarrrif and naira depreciation also fueled inflationary pressures.”

He said the committee urged the government to step up it’s security strategies in curbing the rising threat to the country’s security.

However, he said the MPC expressed satisfaction on the
bank’s intervention to boost food production through agricultural programmes.