CBN expresses concerns over Nigeria’s rising inflation, blames herdsmen, bandits

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Tuesday expressed concern at the rising inflation in the country.

The inflation increased to 17.33 percent at the end of February.

The inflation rate was 16.47 percent in January while food inflation increased from 20.57 percent to 21.79 percent in February.

The MPC, however, blamed food inflation for the headline inflation in the country.

It said food inflation was a driver of the headline inflation, adding that insecurity in regions where farming is predominant as well as the attack on farmers by herdsmen and bandits had caused the increase in food inflation.

Read also: CBN assures Nigerians, investors on forex

The committee said in the last 18 months inflation has been on a rise, adding that “persisting uptick in food inflation, however, was the major driving factor to 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 face frequent attacks by herdsmen and bandits in their farms.

“While the bank is intervening significantly in the agricultural sector, the rising insecurity in some food-producing areas is limiting the expected outcomes in terms of supply to the market, thus contributing to the rise in food prices.

“The Committee further noted that the key drivers of the increase in core inflation included, the hike in the price of Premium Motor Spirit (PMS), upward adjustment in electricity tariffs and the depreciation of the domestic currency (naira).”

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