There is bleak news for Nigerians waiting on government palliatives following the increasing economic challenge in the country.
This is because there is move to checkmate further release of funds for purchases suspected of fueling inflation in the country.
if the move goes through, then of course, Nigerians waiting on government palliatives to tide through the challenging economic phase, would have had their source of supply cut.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, gave an indication to the above yesterday.
Its governor, Olayemi Cardoso, is of the opinion that the huge purchase of foodstuffs by the government as palliatives is contributing to the galloping food inflation in the country.
He spoke while contributing during the March Monetary Policy Committee, which was published on the website of the CBN.
The MPC increased the benchmark interest rate to 24.75 per cent, from 22.75 per cent.
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“Despite notable stability in the foreign exchange market resulting from decisions taken at that 293rd MPC meeting, inflationary pressure remains unabated”, stated Cardoso.
He added “While there is the argument that the significant tightening since the last MPC meeting is yet to fully permeate the system and yield its expected impact, the risk of galloping inflation persists.
“If such a hyperinflationary scenario is to become reality, available options to control inflation could be severely constrained. From the facts presented to the MPC, there is a clear indication that the monetary factors contributing to inflation are diminishing in their significance.
“This could be considered as evidence of the impact of decisions reached at the 293rd MPC meeting. Staff reports show that the principal drivers of acceleration in inflation are hikes in food and energy prices which are associated with structural factors. Further, new dimensions of inflationary pressure are emerging.
“First, ‘seller inflation’ arising from the oligopolistic structure of commodity markets such as noticed in the prices of local commodities is gaining significance. In addition, huge purchases by the government for distribution as palliatives to vulnerable citizenry is adding another dimension to the food price inflation, with seasonal factors of food price increases during religious fasting and festive periods, adding price cyclicality.”
As well intoned as the governor’s submission are for the economy, it is however likely to be perceived differently in other quarters, in fact, bleak news for Nigerians waiting on government palliatives.
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Many families are not finding it funny taking care of their members in the recent.
The value of the Naira has remained palpable against static salary earnings, and this has accounted to the widespread concerns and complaints from different quarters.
