A financial consultant has urged the Federal Government to address rising inflation rate in order to ensure a lasting solution to the farmers/herders’ clashes in parts of the country.
Mr Ona Ohimor, a financial consultant said this on Thursday in Abuja, while reacting to the latest inflation figure.
The National Bureau of Statistics (NBS), had in its Consumer Price Index (CPI), January 2021 report, revealed that inflation rate increased to 16.47 percent in January.
The increase is 0.71 percent higher than 15.75 percent recorded in December 2020.
The report also revealed that composite food index stood at 20.57 percent in January compared to 19.56 percent in December.
The NBS said the rise was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetable, fish, oils and fats.
Ohimor said the rise in food prices could only worsen the nation’s poverty index as more people slide below the poverty line.
“The significant jump in food inflation shows the extent to which input costs for food production have been impacted by developments in the economy, including but not limited to hike in electricity tariffs and petrol. Also of relevance is the impact of herdsmen and banditry on farming. It goes without argument that a lot of farmers have abandoned their farms.
“Furthermore, intervention programmes to support farmers in the mound of Anchor Borrowers Programme have to be reviewed, expanded and implemented to achieve even better results”, he added.
The financial consultant said the continuous rise in inflation was not unconnected with rise in prices of key inputs such as electricity and fuel.
He added that the hike of both electricity tariffs and pump price of petrol were not without consequences.
According to him, the multiplier effect of the above is largely responsible for rise in prices of food and other commodities.
Ohimor, who applauded the reopening of land borders said if properly harnessed, would have a positive impact on inflation.
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