Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has said that government purchases of palliatives are a contributing factor to rising food prices in Nigeria.
During the latest Monetary Policy Committee (MPC) meeting held between March 25 and 26, 2024, Cardoso noted that new inflation drivers are emerging beyond the usual monetary factors. This was according to his personal statement in a document released by the CBN, which summarized the discussions of the MPC members.
He said:
The CBN governor further disclosed that apart from targeting inflation with a higher monetary policy rate (MPR), the major concern was to reduce the negative real interest rate and attract foreign capital.
He said:
Cardoso stressed the importance of combining monetary policy with fiscal measures and structural reforms, especially in agriculture, electricity, and energy sectors. These steps are crucial for long-term investment and sustainable economic growth in Nigeria.
He said: