Ask Nigeria Header Logo

FG strategically working to address inflation

Photo of author

By Akintola Timothy

Imported inflation blamed for 23% rise in Nigeria’s inflation rate.

With Nigeria’s economy experiencing a major surge in its inflation rate, there are major concerns as to its impact on the economy, placing immense pressure on the apex bank to further increase its interest rate. Prior, a report by the National Bureau of Statistics had indicated recurrent rise rate in the month-on-month basis. This has however led to an increase in the prices of food and all other expenditures in the country. The government has also been under immense scrutiny for its failure at solving this recurrent inflation and maintaining a stable progression in the economic position.

Mrs. Zainab Ahmed, the Minister for Finance, Budget and National Planning, at the presentation of the 2022 budget performance with the House of Representatives Committee on Finance voiced her discomfort as regards the 23 percent rise in the country’s inflation rate, whilst also disclosing that the Federal Government was in the process of procuring strategic measures to address the inflation and also ensure decongestion of all ports in the country. She attested that the inflation that has ravaged the economic state of the country was due to a number of components.

The Russia-Ukraine war has affected food production in the country.

Mrs. Ahmed attributed imported inflation as one of the components, pointing to the fact that the situations in developed countries around the globe were a major pointer to the increased state of economic inflation in the country. The Russia-Ukraine war for instance has had a huge impact on so many of the inputs of food production in the country. Mrs. Ahmed also indicated that the decision of the U.S Central Bank and Europe Central Bank also had immense effects on Nigeria’s economy, as we depended hugely on imported goods from these countries.

The rising cost of food in the country was also attributed to the high price of diesel in the country. According to the Minister, the problem of transporting farm products to the market had also caused an increase in the final cost of food products. Mrs. Ahmed disclosed that the Central Bank of Nigeria, on a monetary perspective was also ensuring monetary tightening by mopping up liquidity as a measure for salvaging the inflation. She also stated that President Buhari, after a meeting and authorization of the National Food Security Council to ensure that support is being provided.

Large scanners put in place to hasten clearing process and curb congestion.

The Minister averred that one of the measures being implemented was releasing stocks from the strategic reserves. In addition, she indicated that the government was putting in place measures to support inputs such as the production of fertilizers and feeds. She also disclosed an impending committee meeting, where recommendations would be provided to the president for implementation. On why many Nigerian businesses were importing their goods using Ghanaian ports, the minister noted that the ports in the country were hugely congested.

She noted that many businesses due to this congestion have taken to clearing their goods in neighboring countries and in a bid to salvage this congestion, the Ministry of Finance had put in place, large scanners in three locations to further hasten the clearing process and enhance decongestion in these ports. She again disclosed that the Port Authorities were restructuring the ports to further enhance efficiency in controlling the entry and exit. The Lagos-Abuja rail line was also being extended to Apapa, so that containers can be easily taken out of the Apapa port to ease the congestion.

Ahmed blames oil production shortfall on oil theft.

Mrs. Ahmed, on the 2022 budget performance stated that while 1.6 million barrels of oil was being envisaged for daily production, 1.26 million barrels were being produced and she blamed the shortfall on the oil theft perpetration. She also disclosed that this oil theft perpetration was responsible for the country not benefitting much from the crude oil price hike. Mrs. Ahmed said that though the exchange rate was also fixed at N410 to a dollar but rose to N424 over the cause of the year.


Related Link

Central Bank of Nigeria: Website

Snopes.com [/vc_colu


The content on AskNigeria.com is given for general information only and does not constitute a professional opinion, and users should seek their own legal/professional advice. There is data available online that lists details, facts and further information not listed in this post, please complete your own investigation into these matters and reach your own conclusion. AskNigeria.com accepts no responsibility for losses from any person acting or refraining from acting as a result of content contained in this website and/or other websites which may be linked to this website.

Fact Checking Tool - Snopes.com

0 0 votes
Rate This Article
21 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Tolaniiii
Tolaniiii
1 year ago

With Nigeria’s economy suffering a significant spike in inflation, there are serious concerns about the impact on the economy, putting enormous pressure on the central bank to raise interest rates even further.

Christiana
Christiana
1 year ago

Numerous factors contributed to the country’s prolonged period of high inflation, which in turn wrecked the economy of the nation.

Bola12
Bola12
1 year ago

The government has also come under intense scrutiny for its inability to end this persistent inflation and keep the economy growing steadily.

jdpumping
jdpumping
1 year ago

Inflation rising to an all time 23 percent shows the suffering of an average citizen in this country and the government really needs to restartegize to save the economy of the nation it’s in a fire situation.

Abusi
Abusi
1 year ago

They should do enough work to check this inflation rate. It is too high and it’s eating deep into the economy. New strategies ought to be devised quickly before we become totally bankrupt as a nation.

Ultra0711
Ultra0711
1 year ago

Nigeria deteriorated economy continues to worsen. I don’t even see any impact or measure taken to counter the situation and poverty is really ravaging the people. So unfair in this country.

Iyanu12345ogg
Iyanu12345ogg
1 year ago

Prevent measures to stop inflation in all ramifications should be taken. e.g the production of fertilizers and feeds, putting an end to oil theft perpetration etc…

Last edited 1 year ago by Iyanu12345ogg
Haykaylyon26
Haykaylyon26
1 year ago

New idea and new strategy should be come up with to stop inflation. Counter measure should be in place to reduce inflation and prevent the ways that can make the inflation rise more. Our economy need to rise and improved

DimOla
DimOla
1 year ago

Yes, there is global inflation which has cause an additional increase in inflation rate in Nigeria but our government can drastically reduce it if we are a producing nation and not the consuming type. They totally depends on crude oil production rather than diversification to other sector. The country need to massively work on a larger scale in production. We needs to invest in science and technology which an area that is completely lacking in this country. You want rapid development as a nation work on science and technology. Stop importing them develop the ones we have here

Adeolastan
Adeolastan
1 year ago

All this talk will not help Nigerians,we need action on all the process that can lead us out of the inflation.

Tonerol10
Tonerol10
1 year ago

We really need action. Everything is wrong with this country What ever way or strategies that will work to address inflation is welcome

Adesanyaj72
Adesanyaj72
1 year ago

Concerns over the impact of the recent spike in inflation on Nigeria’s economy have led to intense pressure on the country’s central bank to hike interest rates.

SarahDiv
SarahDiv
1 year ago

I don’t believe it is an imported inflation. If our federal government have done the needful and made Nigeria a producing state with won’t be talking about imported inflation. In addition our federal government went as far as borrowing in excess to finance some project . All of these are enough to cause inflation.

Chibuzor
Chibuzor
1 year ago

In addition, the government has come under a great deal of scrutiny due to the fact that it has been unable to bring an end to this persistent inflation and keep a steady progression in the economic position.

Hassan Isa
Hassan Isa
1 year ago

The Federal Government was in the process of acquiring strategic measures to handle the inflation and also to ensure that all ports in the country would be decongested. She vouched for the fact that a multitude of factors were to blame for the inflation that has wreaked havoc on the status of the economy in the country.

Nwachukwu Kingsley
Nwachukwu Kingsley
1 year ago

 As one of the components, imported inflation draws attention to the fact that the conditions in developed countries across the world were a significant contributor to the elevated level of economic inflation in the country.

Taiwoo
Taiwoo
1 year ago

The war between Russia and Ukraine, for example, has severely disrupted many of the inputs of food production in the country. The decisions of the U.S. Central Bank and the European Central Bank also had significant consequences on Nigeria’s economy, as the country relied heavily on imports.

Kazeem1
Kazeem1
1 year ago

The high price of diesel in the country has been linked to the rising cost of food there. The Minister claimed that the increased final cost of food goods was due in part to the difficulty in delivering farm produce to market.

Godsewill Ifeanyi
Godsewill Ifeanyi
1 year ago

firms are clearing their goods in neighboring countries to avoid the delays caused by congestion, and the Ministry of Finance has installed three huge scanners to speed up the clearing procedure and improve decongestion at the ports.

theApr
theApr
1 year ago

The rising cost of food in the country was also attributed to the high price of diesel in the country. According to the Minister, the problem of transporting farm products to the market had also caused an increase in the final cost of food products.

Remi1
Remi1
1 year ago

The Federal Government was working to acquire strategic methods to control inflation and make sure that all of the nation’s ports would be free of congestion. Never really had any notable success. Currently, one dollar equals 800 naira.