The escalating food inflation in Nigeria has been blamed on the purchase of foodstuffs which are then distributed to poor and vulnerable Nigerians as palliatives by the Federal Government.

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, who stated this in an article in the March Monetary Policy Committee (MPC) meeting and published on CBN’s website, said bulk purchase of food items by the government was directly responsible for the rising inflation.

Nigeria’s food inflation rate had risen to a massive 40.01% in March up from 37.92% in February and by March 25, the MPC increased the interest rate from 22.75 percent to 24.75 percent in a bid to tame inflation.

However, while speaking on the inflation, Cardoso said the inflationary pressure had failed to reduce despite increase in the interest rate had stability in the foreign exchange market in February.

“Despite notable stability in the foreign exchange market resulting from decisions taken at that 293rd MPC meeting, inflationary pressure remains unabated,” Cardoso stated.

“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.”

The CBN Governor added that the new sources of inflation were better addressed by the fiscal authorities to complement the efforts of monetary policy.

A member of the MPC, Bala Bello, who also contributed to the debate on the rising inflationary trend, said both “food and core inflation rose in February, underpinning acceleration in headline inflation to 31.70 percent in February from 29.90 percent 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.”

As the world commemorates World Press Freedom Day on Friday, a youth activist from the Young Women Christian Association (YWCA) sheds light on the continued challenges facing the media landscape in Zambia.

Given Chifunda Moyo, YWCA Provincial Coordinator for the Southern Province, shares her analysis of the media environment in Zambia, emphasizing that the press still faces significant obstacles to operating independently.

Moyo pointed out that journalists and media houses were often targeted and threatened by those in power for publishing articles perceived critical of their policies or actions.

“In my opinion, we still face significant challenges. In the past, we witnessed journalists and media outlets being shut down for airing content that was deemed unfavorable to the government,” Moyo explained in an exclusive interview with the Zambia Monitor.

She highlighted the fear among journalists and citizens alike, noting recent instances where individuals were threatened for expressing their views on social media platforms.

Despite the enactment of media-friendly laws by the current government, Moyo observed that these laws were not always enforced.

“Following the elections, new media laws were introduced.
However, we continue to see individuals being threatened with arrest or cautioned for expressing their opinions or publishing certain articles,” she stated.

Moyo acknowledged the assurances from President Hakainde Hichilema that his administration would not interfere with the media’s operations.

However, she underscored the persistence of external interference that contradicts the president’s stance.

“While we appreciate the president’s commitment to media independence, there are still instances of interference from other quarters,” Moyo concluded .

The activist’s insights highlight the ongoing struggle for media freedom in Zambia, underscoring the need for concerted efforts by all stakeholders to safeguard press freedom and ensure a vibrant media landscape in the country.

This story is sponsored content from Zambia Monitor’s Project Aliyense.