Governor of the Central Bank of Nigeria, Olayemi Cardoso has disclosed factors responsible for hunger in the nation, saying there was supply shock of food items preluding yuletide and the distribution challenges due to insecurity.


Cardoso spoke at an interactive session with the Senate Joint Committee on Finance, Banking and Other Financial Institutions and National Planning, explaining that there were economic, social and security challenges that brought about food scarcity.

The Central Bank Governor was summoned by the joint Committee at the backdrop of the free fall of naira and acute hunger that has triggered pockets of protests in some states across the country.


In his address at a well-attended public hearing, the apex bank boss attributed hyper inflation to organic food shortages but added that the government was addressing the menace through fiscal policies which may take time to work out.

Cardoso said: “Headline inflation surged to 28.92%, propelled by food shortages, distribution challenges, and seasonal trends. The festive season’s consumer demand upsurge, following subdued periods due to energy and foreign exchange reforms, contributed to this trend, persisting from November through December yearly.

“The upward trend of food inflation is primarily due to supply shocks caused by insecurity, climate-induced factors such as flood and rainfall shortage in some cases, inefficient, subsistent and seasonal farming practices as well as importation bottlenecks that have impacted the prices of imported food items.


“In December 2023, the economic landscape revealed significant shifts. The headline inflation stood at 28.92% in December 2023 as against 28.20 % in November, food inflation was 33.93% as against 32.84% in November, while core inflation was 23.06% as against 22.38% in October 2023.

“Anecdotal evidence indicates that recent exchange rate volatility has fuelled more foreign demands for agricultural products, especially from neighboring countries.

“While this presents an opportunity to expand and boost agricultural output, hence creating jobs in the sector, supply constraint exacerbated demand, instigating more inflationary pressures.


”Given this backdrop, the emergency committee on food security set up by the President has been taking a number of measures and we see an end in sight to the persistent rise in food inflation.

“On our side at the CBN, we have responded with significant monetary policy tightening to reign in inflationary pressure.

”Empirical analysis has established that money supply is one of the factors fueling the current inflationary pressure. For instance, an analysis of the trend of the money supply spanning over 9 months shows that M3 increased from N52.01 trillion in January 2023 to N68.25 trillion in November 2023 representing N16.24 trillion or 31.22 percent increase over the period.


“Increase in Net Foreign Asset (NFA) following the harmonization of exchange rates and the N3.22 trillion ways and means advances were the major factors driving the increase in money supply. I am pleased to note the Fiscal Authorities efforts in discontinuing ways and means advances.”

Responding to a question from Senators, Cardoso said there were some policies in the immediate past administration that have been stopped due to incompatibility in the present administration, particularly the “Ways and Means”, which seems to have been abused.

“This is also in compliance with section (38) of the CBN Act (2007), the Bank is no longer at liberty to grant further ways and means advances to the Federal Government until the outstanding balance as of December 31, 2023, is fully settled.

“The Bank must strictly adhere to the law limiting advances under ways and means to 5 percent of the previous year’s revenue.

“We have also halted quasi-fiscal measures of over 10 trillion naira by the Central Bank of Nigeria under the guise of development finance interventions which hitherto contributed to flooding excess Naira and raising prices to the levels of Inflation we are grappling with today.”

The interactive session was attended by the Chairman, Senate Committee on Banking, Insurance, and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, Chairman, Senate Committee on Finance, Senator Mohammed Sani Musa, Chairman, Senate Committee on National Planning, Senator Abdullahi Yahaya, Vice Chairmen and members.

Tntsi:
I see the state of our nation and i laugh and i also cry.
I laugh because I have series of warnings and consequences of a tinubu presidency and i see everything we said happening.
I cry because I see mothers crying helplessly.
I see fathers confused and hopeless on which way to go.

The signals from divinity that tinubu is the REJECTED ONE was too glaring for anyone with a third eye to see.

Tinubu lost woefully in Lagos, the state he claimed to build and give blue print. It was a free fall that they had to do abacadabras, thuggery, bullies and so on so as to pad up figures.

Noticing what was happening all around the nation, his criminal partners in INEC headed by mahood yakubu had to quickly do a serious abracadabra on the machines so as to claim no network and all that criminalities.

Despite all the criminal moves, he could not muster ordinary 25% in the FCT which was a constitutional requirement for the office of president.
Also itt was on record that he submitted a fake certificate to INEC which is against the laws of the land.
All these were signals from divinity that tinubu is the REJECTED ONE.

Despite all these signals and warnings from divinity , tinubu in his desperate quest for power, connived with criminal judges , criminalized the judiciary, desecrated the land ,removed the ancient landmark set by the fathers , grabbed power by all means and thereby brought the land under a curse, plaugues and dearth as there are consequences for desecrating the land which is clearly written in the holy book.

Today the nation is in total shambles. Security, economy, education, everything is in shambles because of the desperation of a man for power.

The only answer to plagues that have befallen our nation is that every person involved in desecrating the land leaves or resign.
Outside this, Nigeria is heading to death.

The nation needs to be reset. The broken altar and landmark needs to be repaired.
The new Nigeria has to be given the mandate.
It is a divine mandate to pull out Nigeria from the pit.

No matter the intelligence of whoever is hired under this desecrated cursed mandate, it will yield nothing. The nation will be plunged into more doom, hunger and hardship.

Individuals here and there with clean hands and trust in God will enjoy divine supply.

malali:
[b]The Past Nigerian administration lack revenue generating ideas, they have been running the pocket money economy system. Instead of taking revenue generated from the oil boom since late 70's till date. They have just looted the money and used the rest to subsidize lifestyle of Nigerians (fuel subsidy). Now they can barely afford the subsidy and also pay salaries, pension and also politicians. So they are transferring the subsidy to the common man, this will free up cash for them to loot, and run the government. Eventually even without paying subsidy there still wont be enough cash to run the government (We are already in this stage, thats why they keep borrowing money up and down, which devalues our currency). See some countries that have also used the same oil to prosper their nation as a whole.
Norway: Norway has built a sovereign wealth fund, known as the Government Pension Fund Global, which invests proceeds from oil and gas production. The fund is one of the largest in the world and has investments in various sectors globally, providing a stable source of income for the country.

United Arab Emirates (UAE): The UAE, particularly Dubai and Abu Dhabi, has diversified its economy beyond oil by investing heavily in sectors such as tourism, real estate, finance, and technology. Dubai, in particular, has become a global hub for trade, finance, and tourism.

Qatar: Qatar has leveraged its natural gas reserves to become one of the world's leading exporters of liquefied natural gas (LNG). Additionally, Qatar has invested in various sectors, including finance, real estate, and sports, to diversify its economy.

Singapore: Although Singapore does not produce oil itself, it has established itself as a major trading and refining hub for oil and petroleum products in the Asia-Pacific region. Singapore has also diversified its economy into sectors such as finance, shipping, biotechnology, and tourism.

Malaysia: Malaysia has developed a diverse economy, with thriving manufacturing, services, and tourism sectors alongside its oil and gas industry. The country has also invested in infrastructure projects and technology to support economic growth.

Netherlands: The Netherlands, home to one of Europe's largest natural gas reserves, has invested oil and gas revenues into developing a highly advanced economy with strong industries in agriculture, manufacturing, trade, and services.

These countries serve as examples of how strategic planning, prudent investment, and diversification efforts can help mitigate the economic risks associated with dependence on oil revenues. By investing in other sectors and fostering innovation, these nations have been able to thrive beyond their oil wealth.[/b]

malali:
[b]The Past Nigerian administration lack revenue generating ideas, they have been running the pocket money economy system. Instead of taking revenue generated from the oil boom since late 70's till date. They have just looted the money and used the rest to subsidize lifestyle of Nigerians (fuel subsidy). Now they can barely afford the subsidy and also pay salaries, pension and also politicians. So they are transferring the subsidy to the common man, this will free up cash for them to loot, and run the government. Eventually even without paying subsidy there still wont be enough cash to run the government (We are already in this stage, thats why they keep borrowing money up and down, which devalues our currency). See some countries that have also used the same oil to prosper their nation as a whole.
Norway: Norway has built a sovereign wealth fund, known as the Government Pension Fund Global, which invests proceeds from oil and gas production. The fund is one of the largest in the world and has investments in various sectors globally, providing a stable source of income for the country.

United Arab Emirates (UAE): The UAE, particularly Dubai and Abu Dhabi, has diversified its economy beyond oil by investing heavily in sectors such as tourism, real estate, finance, and technology. Dubai, in particular, has become a global hub for trade, finance, and tourism.

Qatar: Qatar has leveraged its natural gas reserves to become one of the world's leading exporters of liquefied natural gas (LNG). Additionally, Qatar has invested in various sectors, including finance, real estate, and sports, to diversify its economy.

Singapore: Although Singapore does not produce oil itself, it has established itself as a major trading and refining hub for oil and petroleum products in the Asia-Pacific region. Singapore has also diversified its economy into sectors such as finance, shipping, biotechnology, and tourism.

Malaysia: Malaysia has developed a diverse economy, with thriving manufacturing, services, and tourism sectors alongside its oil and gas industry. The country has also invested in infrastructure projects and technology to support economic growth.

Netherlands: The Netherlands, home to one of Europe's largest natural gas reserves, has invested oil and gas revenues into developing a highly advanced economy with strong industries in agriculture, manufacturing, trade, and services.

These countries serve as examples of how strategic planning, prudent investment, and diversification efforts can help mitigate the economic risks associated with dependence on oil revenues. By investing in other sectors and fostering innovation, these nations have been able to thrive beyond their oil wealth.[/b]

BreconHills:


You should have written this in 1972 when your oil production to population ratio was high and your country had USD. That USD was frittered away by successive governments with nothing to show for it. Now you have nothing. How do you invest like these countries with no money?

If you can find the money today to implement what you have written here, you will become a national treasure.