The Federal Government has announced plans to address inflation by releasing food from its strategic reserves after flooding destroyed local supplies.
This was disclosed by the Minister of Finance Mrs Zainab Ahmed at the presentation of the 2022 budget performance before the House of Representatives Committee on Finance on Wednesday in Abuja.
The Minister also stated that the government has plans to decongest ports to facilitate trade and remove roadblocks.
Zainab Ahmed said that Nigeria’s food inflation, which has risen above 23%, is worrisome. She blamed some factors imported inflation for this. She also noted that problems in developed countries have affected Nigeria, especially the Russian invasion of Ukraine that disrupted energy and fertilizer prices globally.
She also blamed the US Fed and the ECB rate hikes, which have affected imported goods prices. According to her, high diesel costs have also contributed to the high food inflation rate
While commenting on what the FG and the CBN are doing to mitigate inflation, the Minister said:
“From the monetary side, what the CBN is doing to manage inflation is monetary tightening by mopping up liquidity. On the side of the government, President Muhammadu Buhari has authorised the National Food Security Council to release reserves. We held a meeting yesterday evening on how some support will be provided.
“One of the means is releasing stocks from the strategic reserves; we are also looking at how to support inputs like fertilizer production as well as inputs such as feeds.
“The committee will be meeting in the next couple of days to provide recommendations to the president that will be announced for implementation.”