The reason for the hunger in Nigeria was explained by the Governor of the Central Bank, Olayemi Cardoso. He attributed the shortage of food items and distribution challenges to supply shocks and insecurity. Cardoso addressed a joint committee session with the Senate, revealing the economic, social, and security challenges contributing to food scarcity.
Cardoso noted that hyperinflation was caused by organic food shortages, and the government was working on addressing the issue through fiscal policies, acknowledging that it may take time to see results. He further explained that the surge in headline inflation was driven by food shortages, distribution challenges, and seasonal trends, especially during the festive season.
The governor highlighted the factors behind the upward trend of food inflation, such as supply shocks due to insecurity, climate-induced factors, and importation bottlenecks impacting the prices of imported food items. He also touched on the impact of exchange rate volatility and the measures being taken by the emergency committee on food security.
In response to a question from Senators, Cardoso mentioned that certain policies from the previous administration, notably the “Ways and Means,” had been discontinued due to incompatibility with the present administration. He emphasized the importance of adhering to the law limiting advances under ways and means to 5 percent of the previous year’s revenue.
The interactive session was attended by prominent members of the Senate Committees on Banking, Insurance, Finance, and National Planning.