The Central Bank of Nigeria (CBN) says the rise in food prices in December 2021 was temporary and their causes identified, assuring Nigerians they will not escalate in 2022.

CBN governor Godwin Emefiele said this while fielding questions from journalists after presenting the outcome of the two-day Monetary Policy Committee (MPC) meeting in Abuja.

Mr Emefiele attributed the rise in food prices to logistical challenges in moving food from farms to the market. 

He also accused hoarders of forcing food prices to increase.

“We found out that prices at farm gates are in line with our expectations because they are somewhat moderate. However, prices at the markets where our statisticians take their survey are high,” noted the CBN governor. “So, if prices at the markets are high, there is, therefore, some problems between the farm gates and the markets.”

He attributed the problems to logistics, “essentially bordering on transportation, also bordering on maybe destruction of food produce or perishable items from farm to market.”

Mr Emefiele added that the CBN was looking at the issues and would come up with good stories to tell about the trend by the next MPC.

He also mentioned that the MPC was happy about the Anchor Borrowers Programme, which started last year, adding that it would help to moderate food prices and stop hoarding.

The CBN governor also stated that the MPC had ensured that the Nigerian commodity exchange would come alive.

He also assured Nigerians would soon buy rice at a reasonable price.

(NAN)