UNBELIEVABLE! CBN Governor Drops BOMBSHELL, Reveals What The Government Is Doing That Is Causing Rise In Food Items
In his address during the March Monetary Policy Committee (MPC) meeting, Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), shed light on the factors contributing to the soaring food inflation in the country. He attributed the upward trajectory in food prices to the extensive purchase. of food items for the government’s palliative measures. These initiatives, aimed at alleviating the plight of the populace, inadvertently fuel inflationary pressures, exacerbating the already challenging economic landscape.
Despite concerted efforts by the CBN to curb inflation through monetary policy adjustments, food inflation has remained persistently high. The MPC, in response to the alarming inflationary trend, decided to raise the benchmark interest rate to 24.75% from 22. 75%, signaling a proactive stance to mitigate inflationary pressures. However, the inflation rate surged to 33. 2% in March, with food inflation reaching a staggering 40. 01%, marking a significant uptick from the previous year. The National Bureau of Statistics (NBS) identified key food items such as garri, millet, yam tuber, and water yam as major contributors to the surge in food inflation. These staple commodities, essential for sustenance, have witnessed substantial price hikes, rendering them increasingly unaffordable for a significant portion of the population.
The government’ s allocation of N5 billion to each state and the Federal Capital Territory, following the removal of petrol subsidy, aimed at bolstering food distribution efforts to mitigate the impact of rising prices on vulnerable segments of society relative stability in the foreign Cardoso emphasized that despite exchange (FX) market, inflationary pressures persist, underscoring the need for coordinated efforts between fiscal and monetary authorities to address the underlying causes of inflation. Bala Bello, another MPC member, echoed Cardoso’ s sentiments, highlighting the adverse effects of high inflation on purchasing power, investment decisions, and overall economic performance. He commended the government’ s interventions aimed at enhancing food security, including the release of grains from strategic reserves and support for agricultural initiatives.
In addition to grappling with inflationary challenges, the Nigerian economy faces disruptions in the financial technology sector. Four fintech companies, including Opay, PalmPay, Kuda Bank, and Moniepoint, suspended new account openings due to Know Your Customer (KYC) challenges imposed by regulatory authorities. This development follows.
the Economic and Financial Crimes
Commission’ s (EFCC) crackdown on
unauthorized forex transactions,
reflecting regulatory efforts to maintain financial integrity and transparency in the banking sector.
As Nigeria navigates through these economic headwinds, stakeholders are urged to collaborate in implementing holistic strategies to address inflation, enhance food security, and foster a conducive environment for sustainable economic growth. The government, in partnership with regulatory bodies and private sector entities, must prioritize policies that promote price stability, support agricultural productivity, and stimulate inclusive economic development. By fostering resilience and innovation, Nigeria can overcome its current economic challenges and emerge stronger in the global economic landscape.
Source
Legit
