- CBN's MPC members are concerned about the rising inflation which has been on increase for 18 months
- The monetary authority said bandit activities and herdsmen attack on farmers are reasons for the rising inflation
- The apex bank said it has tried to intervene in the agricultural sector, but the attacks have prevented positive results
The Central Bank of Nigeria (CBN) blamed the herdsmen and bandits for the rising inflation rate, which has been on the high for the past eighteen months. The constant attack is said to have pushed food inflation higher.
This was contained in the CBN's Monetary Policy Committee meeting circular. Members of the monetary decision-making body said the inflation rate is a ripple effect, as food cost dragged headline inflation up.
In the statement disclosing the outcome of the meeting, CBN stated the members of the committee were worried about the rising inflationary pressure which hasn't been curbed for one year and six months.
Headline inflation rose to 17.33% at the end of February 2021, from 16.47% in January 2021, while food inflation increased from 20.57% in January, to 21.79% at the end of February.
During the meeting, MPC cited the attacks on farmers by herdsmen and bandits, as reasons for the rise in inflation. The apex bank said security is becoming worsen in many parts of the country, making particular reference to states where farm produce is dominant.
Bandit, Herdsmen activity affecting CBN's intervention fund
MPC said the apex bank's intervention to support the agricultural sector hasn't reflected the desired result due to the attacks on farmers and rising insecurity: The circular stated that significant investment was put into the agric sector.
The financial regular said, in terms of market supply, investment in some food-producing areas is not yielding the expected outcome amid insecurity in the northern part of Nigeria
"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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Fakoyejo Olalekan is a Business and Financial Journalist with over three years of experience in covering finance and business activities within Nigeria and offshore. Prior to joining Legit.ng, he worked at Nairametrics where he wrote financial and investment analysis articles. Olalekan is a resourceful and result-driven journalist with a track record for conducting extensive research and interviews to produce articles that provide different perspectives to market activities.