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Govt palliative worsening food inflation, says Cardoso
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By Kayode Sanni-Arewa
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has said that the huge purchase of foodstuffs by the government as palliatives is contributing to the galloping food inflation in the country.
He stated this in his contributions during the March Monetary Policy Committee, which was published on the website of the CBN.
The MPC increased the benchmark interest rate to 24.75 per cent, from 22.75 per cent.
The committee had said that its hawkish stance was to tackle inflation.
However, the country’s inflation rate accelerated to 33.2 per cent in March, with the food inflation rate reaching 40.01 per cent, a year-on-year increase of 15.56 percentage points from 24.45 per cent in March 2023.
According to the National Bureau of Statistics, the surge in food inflation could be attributed to rising prices for items such as garri, millet, yam tuber, water yam, and others.
Following the removal of fuel subsidy, the Federal Government approved N5bn for each state and the Federal Capital Territory to enable them to procure food items for distribution to the poor in their respective states.
In his comments, the CBN governor noted that inflationary pressure had failed to abate despite the hike in the interest rate in February.
He said, “Despite notable stability in the foreign exchange market resulting from decisions taken at that 293rd MPC meeting, inflationary pressure remains unabated. While there is the argument that the significant tightening since the last MPC meeting is yet to fully permeate the system and yield its expected impact, the risk of galloping inflation persists. If such a hyperinflationary scenario is to become reality, available options to control inflation could be severely constrained. From the facts presented to the MPC, there is a clear indication that the monetary factors contributing to inflation are diminishing in their significance.
“This could be considered as evidence of the impact of decisions reached at the 293rd MPC meeting. Staff reports show that the principal drivers of acceleration in inflation are hikes in food and energy prices which are associated with structural factors. Further, new dimensions of inflationary pressure are emerging. First, ‘seller inflation’ arising from the oligopolistic structure of commodity markets such as noticed in the prices of local commodities is gaining significance. In addition, huge purchases by the government for distribution as palliatives to vulnerable citizenry is adding another dimension to the food price inflation, with seasonal factors of food price increases during religious fasting and festive periods, adding price cyclicality
He further said that the new sources of inflation were better addressed by the fiscal authorities to complement the efforts of monetary policy.
Another member of the committee, Bala Bello, echoed a similar sentiment about the rising inflationary trend, saying, “Both food and core inflation rose in February 2024, underpinning acceleration in headline inflation to 31.70 per cent in February 2024 from 29.90 per cent in the previous month. This continued rise in inflation was mainly due to persisting high production costs, lingering security challenges and exchange rate pressures.
“Inflation is currently unacceptably high and requires decisive and coordinated efforts to curb it, given its adverse impact on citizens’ purchasing power, investment decisions and broad output performance.
According to Bala, the Federal Government’s initiatives at addressing food insecurity, such as the release of grains from the strategic reserves, distribution of seeds and fertilisers, and support for dry season farming, are important and commendable.
News
Cholera Outbreak: Plateau Records 5 Deaths, 11 Confirmed Cases
Plateau State commissioner for Health, Dr Nicholas Baamlong, has revealed that the state recorded 11 confirmed cases of cholera, five deaths and 53 suspected cases.
Baamlong, who disclosed this to journalists yesterday in Jos, said the confirmed and suspected cases were reported in Pushit, Mangu 1 and Mangu 2 communities in Mangu local government area (LGA).
According to him, the state Ministry of Health is intensifying public health interventions to contain the outbreak, prevent further spread and reduce its impact on affected communities.
He explained that the state had taken decisive actions to control the outbreak and protect its citizens via the deployment of additional Response Teams (RRTs) to the affected wards, scaling up of treatment centres and isolation capacity and the emergency procurement of Rapid Diagnostic Tests Kits, intravenous fluids and essential drugs.
The Commissioner further said that the ministry had activated an Incident Management System (IMS), for a comprehensive and multi sectorial response to the outbreak.
“The activation of the IMS ensures a coordinated, efficient, and accountable response structure in line with national and international emergency response frameworks,” he said.
Baamlong explained that cholera was an acute diarrhoeal disease caused by consuming food or water contaminated with the bacterium Vibrio cholerae.
He urged residents of Mangu LGA and neighbouring communities to remain vigilant and take preventive measures, including drinking safe water, maintaining proper hand hygiene, avoiding open defecation, and ensuring proper waste disposal.
He also advised residents to promply report suspected cases of cholera to the nearest healthcare facility for immediate attention.
While reaffirming the state government’s commitment to safeguarding the health and well-being of residents, Baamlong called on development partners and other stakeholders to support ongoing response efforts.(NAN)
News
South Africa says 2,745 foreigners sent home in a week
South Africa has repatriated 2,745 foreigners in the week after President Cyril Ramaphosa vowed tougher action against illegal immigration, the country’s home affairs minister said on Sunday.
One of Africa’s largest economies, South Africa has long attracted migrant workers from across the continent, both legally and illegally.
But saddled with an unemployment rate above 30 percent, it has experienced recurring spurts of anti-immigrant unrest, including fresh violence in recent weeks.
Mobs of South Africans carrying sticks, whips and shields have marched through parts of the country ordering foreigners with no residency papers to leave by June 30.
Growing security fears after businesses were looted and foreigners targeted have prompted citizens of Nigeria, Malawi, Ghana, Zimbabwe and Mozambique to accept voluntary repatriation organised by their governments.
“As of last night, the number we can report is 2,745 repatriations that have come in this period since the president spoke,” Home Affairs Minister Leon Schreiber told reporters.
“It is a moving target,” he said.
The government said most of those repatriated were in the country illegally.
They include Malawian nationals, about 7,000 of whom have been sheltering in an open field in the eastern port city of Durban, according to an inter-ministerial migration committee set up after the president’s address.
Eight buses commissioned by the Malawian government began moving its citizens on Sunday, with South Africa providing 10 additional buses to speed up deportations, the committee said.
Some 560 people, including about 200 children, took the journey on Sunday, Malawi Consul General Max Biwi said.
Among those boarding the first buses, some carried babies on their backs and small bags of belongings.
“I’m relieved we are finally leaving. It’s better than living in fear here,” said Fortunate Chilenje from Blantyre, Malawi’s commercial capital.
The 25-year-old had lived in South Africa for three years, she told AFP, adding that threats to leave had followed her even at the camp, one of the largest to emerge since the unrest began.
The government said on Sunday it did not operate refugee camps and had no intention of establishing them, even on a temporary basis.
Another passenger, Laina Nala from Mangochi in southern Malawi, said she simply wanted to be dropped as close to her home as possible, rather than continuing on to Blantyre.
“Blantyre is too far and expensive from there,” she said.
For Hassan Hasha, 27, a debt linked to his journey to South Africa still hung over his head.
He said he had barely stayed in South Africa for weeks before the anti-foreigner sentiment flared, but added: “I have resigned myself to going home”.
Last week, Ramaphosa acknowledged public concerns over illegal immigration but warned that the authorities would not tolerate anyone taking the law into their own hands.
Tensions escalated after two Mozambicans were killed following a May 29 march against illegal migrants in the Western Cape town of Mossel Bay. Mozambican authorities put the toll at five.
There are more than three million foreigners living in South Africa, or 5.1 percent of the population, according to the statistics agency.
News
FCT residents decry rising cost of tomatoes
Many residents of the Federal Capital Territory (FCT) have expressed concern over the continued increase in the price of tomatoes.
The residents told the News Agency of Nigeria (NAN) on Sunday in Abuja that the situation was making things difficult for both traders and residents.
A market survey conducted by NAN in some markets in the FCT showed a sharp rise in tomato prices in recent weeks.
A vegetable seller at the Suleija market, Malam Isah Ado, said they were facing challenges in their business due to the surge in tomato prices.
Ado said a big basket of tomatoes, which sold for between N85,000 and N90,000 a few weeks ago, currently sells for between N150,000 and N170,000.
He attributed the rise in price to seasonal scarcity, post-harvest loses and high cost of transportation from farms to markets.
A tomato seller at Garki New Market, Ms Philomena Bassey, lamented that the cost of transporting produce from the producing states to the markets had continued to increase.
“Customers think we are ripping them off and making a lot of profit from our sales, but that is not the case.
” We buy these tomatoes sometimes cheaply from the farms where they are produced, but by the time they get to Abuja, the price will have gone up.
“So, we have to factor in all of these factors, which makes the cost of the product increase,” she said.
A small-scale trader popularly known as Mummy Juli, who resides in Kubwa village, said tomatoes were very scarce in the market these days.
” The scarcity has made tomatoes very expensive to buy, thus forcing us to also adjust our prices.
“I used to share a basket of tomatoes with three other traders, but now I have to share with five colleagues because of the increased price in the market,” she said.
She told NAN that a small bucket of tomatoes she usually sells for between N4,000 and N4,500 now sells for between N8,000 and N10,000.
“Due to the hike in price, I can no longer sell a portion of tomatoes for less than N1,000 as against N100.
” This has led to reduced sales in my business because the majority of my customers are very low-income earners who buy in small quantities.
“As the situation is right now, there is nothing I can do; I have to keep managing and hope for the best,” she said.
Mrs Angella Ikenna, a mother of two, shopping at the Dutse Market, said the rising cost of tomatoes was taking a toll on her family’s feeding expenses.
“I used to buy the tomatoes I need for a week, but due to their price, I now buy only what I need for a day or two,” she said.
Similarly, Mr Moses Sunday, a nurse, lamented that the rising cost of tomatoes was compounding the country’s economic situation.
Mrs Badia Muhammad, a resident of Dei-Dei, said the rise in tomato prices was affecting many households.
“We use tomatoes almost in every meal, but due to the sharp rise, we can no longer afford to buy them as we used to and have to opt for cheaper alternatives.
“We appeal to the government to address the issues affecting the supply of tomatoes and implement measures that will enhance production.
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