Rising inflation in Nigeria due to insecurity and naira devaluation

The CBN governor has stated that the rising inflation in Nigeria due to insecurity and naira devaluation, which has affected the economy to a large extent.

Godwin Emefiele, the Central Bank of Nigeria (CBN) governor has stated that rising inflation in Nigeria was caused by the devaluation of the naira and security issues.

He said this on Tuesday, the 23rd of March while presenting the report after the Monetary Policy Committee (MPC) meeting that was held for 2 days.

According to the CBN governor, inflation had increased for the past 18 months. This was then worsened by food inflation, making it clear that the food inflation was due to insecurity in the different food-producing areas.

“The MPC also expressed its concern with the acceleration in inflationary pressure for the 18th consecutive month as frontline inflation increased to about 17.33% towards the end of February 2021, from 16.47%  in January 2021.

“This increase is continually linked to both food and other major components of inflation. This particular acceleration in food inflation was the major driving force for the boost in headline inflation,” Emefiele said.

In addition, the CBN governor stated that in various parts of the country, specifically the food-manufacturing areas, farmers faced repeated attacks from herdsmen and thieves in their farms.

The apex bank’s governor stated that though the bank was making evident progress in the agricultural sector, the rise in insecurity was reducing the expected outcomes in terms of supply to the markets.

Emefiele further said that trend was also heightened by the increase in the pump price of fuel, the upward adjustment of electricity tariff as well as a decrease in the value of the naira.

Northern Nigeria has been a victim of numerous issues of insecurity due to looting, mutiny, and others.

The Small-Scale Women Farmers Organisation in Nigeria (SWOFON) said that one of the major issues farmers face currently is insecurity.

According to SWOFON, the most painful of the encounters of the women farmers across the country were the activities of kidnappers, bandits, and terrorist groups like Boko Haram.

SWOFON said, “Today, a lot of female farmers are afraid of going into their farms because they may be, raped, robbed by bandits, and killed,”

In November 2020, Boko Haram took responsibility for the death of 78 farmers in Zabarmari, a community located in the Jere Local Government Area of Borno State. Though the official number given by the Nigerian authority was 48, many felt the number was more.

Ned Nwokolo who is the team leader of NexTier SPD, a consultancy firm on human security, stated that robbers and revolts now demanded farmers to pay them levies.

The leader of the consultancy firm also said, farmers were no longer safe and many of them have refused on going to their farm due to insecurity.

Also Read:  CBN worries about Nigeria’s rising debt: keeps MPR at 11.5%

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