CBN’s MPC blames fuel, hike in electricity tariff for rising inflation in Nigeria

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has blamed rising energy prices for the hike in inflation rate experienced within the country in February 2022.

In a communique released after the MPC meeting on Monday, the central bank body expressed concerns towards the rising inflation which has increased cost of living for Nigerians.

Ripples Nigeria had reported that the headline inflation was up from 15.60% in January 2022, to 15.70% in February 2022, posting a year-on-year growth, while keeping Nigeria in the double-digit inflation group.

Commenting on the inflationary environment in Nigeria, the MPC stated that the scarcity of Premium Motor Spirit (PMS) and rise in the cost of Automotive Gas Oil (AGO) are factors fuelling inflation rise.

The group also mentioned hike in electricity tariff as another reason. In a bid to tame the uptrend of inflation rate, the CBN will intervene financially in various sectors of the economy, MPC wrote in their communique.

They said the intervention would improve production output, which in turn will moderate rises in prices. While the MPC stated that CBN would play its part, the group requested for “innovative ways of addressing the current critical supply-side challenges confronting the economy” from the fiscal authorities.

According to the MPC, it will “enable the unhindered transmission of all the recently deployed fiscal and monetary stimulus to the real economy.”