The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has urged citizens to be patient regarding the current inflation and the hike in food prices in the country. Cardoso made this statement while briefing journalists at the end of the Monetary Policy Committee (MPC) meeting in Abuja.
The CBN governor emphasized that there is no quick fix for inflation in Nigeria, but rather, it requires patience. He noted that despite the pressure from food inflation, the general inflation rate was “moderating,” indicating that the Central Bank’s tools are effective.
“I have said several times, and I will say again, there is no magic wand. These are things that need to take their time,” Cardoso stated. “I am pleased and confident that we are beginning to get some relief, and in another couple of months, we will see more positive outcomes from the Central Bank’s efforts.”
He added, “The committee reiterated several challenges confronting the effective moderation of food inflation, including rising transportation costs for farm produce, infrastructure-related constraints along the distribution network, security challenges in some food-producing areas, and the exchange rate pass-through to domestic prices for imported food items.”
“The MPC urged that more be done to address the security of farming communities to guarantee improved food production in these areas,” Cardoso said. “Members further observed the recent volatility in the foreign exchange market, attributing this to seasonal demand, a reflection of the interplay between demand and supply in a freely functioning market system.”
The Central Bank of Nigeria has also attributed the recent volatility in the country’s foreign exchange market to seasonal demand for dollars. “Members further observed the recent volatility in the foreign exchange market, attributing this to seasonal demand, a reflection of the interplay between demand and supply in a freely functioning market system,” a communique issued by the committee on Tuesday stated.