The Governor of the Central Bank of Nigeria, Yemi Cardoso, has appealed to Nigerians to be patient with the government as there is no ‘’magic wand to be used in the current fight against inflation.
Speaking to newsmen at the end of the Monetary Policy Committee, MPC, meeting in Abuja on Tuesday, May 21, Cardoso said despite pressure from food inflation, the general inflation rate was “moderating”, adding that “the tools the Central Bank is using are working”.
“I have said it several times and I will say again, there is no magic wand. These are things that need to take their time. I am pleased and confident that we are beginning to get some relief and in another couple of months, we will see the more positive outcomes the Central Bank has been doing.
The committee thus reiterated several challenges confronting the effective moderation of food inflation to include rising costs of transportation of farm produce, infrastructure-related constraints along the line of distribution network, security challenges in some food-producing areas, and 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.
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” he said.
