The Former Deputy Governor of CBN and the Director, Center For Policy and Economic Research, Obadiah Malafia, has stated reasons why Nigeria is facing the problems of inflation and increase in the prices of food. He attributed the causes to Fulani-Herdsmen violent attacks. Which has created fear of insecurity in the heart of rural farmers that farmers now prefer farming at areas near their homes than going to far places to farm. Thereby reducing farming productivity.
Malafia said, “The cost of food price is high during the planting season, March-April. Until the crops are ready for the market (by late September up to December), there is always a tendency for scarcity of food.”
He stated that the increase in exchange rates of farming tools including tractors, fertilizers are imported also added to inflation.
“Inflation is a task on the poor and it discourages investments. So, for growth and a stable market economy to prevail, we need to be able to bring down inflation.”