The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has revealed factors contributing to high headline inflation which has increased the cost of living in Nigeria.
Emefiele mentioned security, tensions in the country and poor public infrastructure as reasons the headline inflation remains above the ceiling of CBN’s six to nine percent inflation corridor.
The latest Consumer Price Index data from Nigerian Bureau of Statistics had put headline inflation at 18.12 percent in April 2021, down from 18.17 percent in March 2021 – far above the apex bank’s ambition.
In a Monetary Policy Committee document released by the CBN, the financial regulator said it will support the Federal Government in its effort against insecurity which has negatively affected the business environment of Nigeria.
It also stated that this will encourage business activities within the country and drive inflation down. The decline in headline inflation is the first in nineteen consecutive months of continuous rise.
The statement reads: “headline inflation remained well above the ceiling of the Bank’s 6-9 per cent inflation corridor as a result of a combination of factors, including: the heightened security tensions in the country and deteriorating public infrastructure.
“As a result, the Bank expressed its support to the Federal Government’s commitment to tackle insecurity as this will improve the business environment and encourage economic activities to reduce inflation.”
By Fakoyejo Ayodeji…
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
If you are motivated and passionate about building a global society, founded on justice, equity, fairness, transparency, accountability and superior knowledge, kindly consider donating to Ripples Nigeria’s solutions journalism.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: Inside UNILAG’s multi-million naira budgetary abuse and academic discord
The University of Lagos located in Nigeria’s commercial capital, Lagos, has been embroiled in controversies with allegations bothering on misappropriation of...
SPECIAL REPORT: Displaced residents of Zamfara battle hunger, as underfunding derails Nigeria’s nutrition goals
On paper, Muhammad Zayyanu is seven years old. The quiet boy who looks shorter for his age could not recollect...
INVESTIGATION: N7.3bn paid for unnamed projects; how Nigerian govt spent N2.2trn in six months
Analysing nearly 3,000 payments made by various Federal Government Ministries, Departments and Agencies (MDAs) over the previous six months (January...
INVESTIGATION… Delay rocks Nigerian govt’s promise of N30,000 covid-19 relief for artisans, others
Before the outbreak of the COVID-19 pandemic in February, 2020, Chukwudi Okoroigwe’s daily earnings as a bus driver was hardly enough to cater to the...
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...