In January 2021, the country’s food inflation rose to its highest level since 2008, making it the very best in over 11 years. Analysts blame the increase on the Covid-19 pandemic, dollar shortages, and lingering restrictions on imports of certain food items despite the re-opening of the borders. Another factor is the incessant attacks on farmers, which has caused shortages of products.
Nigeria is facing its second recession in just five years. The second recession was triggered by a crash in oil prices that has hammered state revenue, creating large financing needs and weakening the naira currency. The International Monetary Fund is urging Nigeria to reach out the central bank’s financing of the government deficit. It should be done to reduce inflation.
Source: All Africa news
