CBN Decries Worsening Insecurity … Says Limiting Successes in Agric Interventions
The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, yesterday expressed concerns that the worsening insecurity in the country, particularly in food-producing areas is limiting expected outcomes and further fueling food inflation. Emefiele, while reading the communiqué after the MPC meeting, stated that the rise in inflation has continued to be attributed to the increase in both the food and core components of inflation, which rose to 21.79 per cent and 12.38 per cent in February, respectively, from 20.57 per cent and 11.85 per cent in January. He said while the apex bank was intervening in the agricultural sector, the rising insecurity in some food-producing areas had limited the expected outcomes in terms of supply to the market, thereby contributing to the rise in food prices. He added that contrary to reports, Nigeria has not altered its foreign exchange management policy. The CBN has resolved to leave the interest rate at 11.5 per cent with the asymmetric corridor of +100/-700 basis points around the MPR. Emefiele said the decision to hold the rates at their current levels, despite rising inflation, followed the need to consolidate on growth, given that the economy had just crawled out of recession.
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