September inflation rate rise owing to border closure, new minimum wage - Financial Experts - Naijahitplaymedia

Financial experts on Wednesday attributed the rise in inflation rate for the month of September to border closure and the new minimum wage.
They stated this in separate interviews with the News Agency of Nigeria (NAN) in Lagos, in reaction to the September inflation figure released by the National Bureau of Statistics (NBS) on Oct. 15.
NAN reports that Consumer price index (CPI) report released by NBS shows that inflationary pressure resurfaced in September, as the headline inflation widened by 0.22 basis points to 11.24 per cent from 11.02 per cent in August.
The inflation figure, according to NBS, is the highest since May 2019.
Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun, said that the rise in inflation was not a surprise due to the border closure that led to an increase in prices of food.
Tella said that the closure of the borders resulted in an initial increase in the price of rice, a major staple food in the country
“We should not be surprised by the rise in the inflation rate.
“The closure of the borders resulted in an initial increase in the price of rice, a staple food, and subsequent increase in other food items,” he said.
Tella said that announced take-off of the minimum wage increase also contributed to the increase in prices of goods and services and attendant hike in the inflation rate.
He, however, described the government’s closure of land border as a welcome development, saying that it would lead to increased local production of goods.
“I support the border closure, so long as it can be sustained and force increased production of goods locally.

“The initial pain is what we are suffering, but in the medium term, we will witness an increase in local production and subsequent fall in prices of goods like rice and other annual products,” Tella said.
He said that the current high price of local rice was due to hoarding of available imported rice to avoid being seized by the customs and the inability to meet up with local demand.
According to him, the price will soon reduce because the policy will force many farmers to plant more rice.

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In a way the closure of the boarder is good, cause that will make us Nigerians to work and value farming.