The Nigeria Apex bank, the Central Bank of Nigeria has said the major cause of sharp increase in the price of food in the country may the high cost of transportation.
The Governor of the CBN, Godwin Emefiele, disclosed this while speaking at the first monetary policy committee meeting of the year.
Emefiele identified a wide difference between the low prices at the Farmgate and high prices at the marketplace, saying transport may be a major factor in the surging food prices.
According to Emefiele, the surge in inflation in December was transitionary and was caused by the December festivities. He said the apex noticed that “prices at the farmgate were inline with expectations, however price at the marketplace is high.”
“If prices at the moment are high, it means there are some problems between the farm gate and the marketplace. We see logistics problems particularly transport,” he added.
Emefiele also identified the destruction of the food products as a primary challenge. He stated that the CBN is out to encourage people through interventions and looking to solve the logistics problem of delivering food from farms to markets.