Border Closure Responsible for Inflation - Finance Minister

In News 2019-11-28 10:59:00
Border Closure Responsible for Inflation - Finance Minister
Border Closure Responsible for Inflation - Finance Minister

Minister of Finance, Budget and National Planning, Hajia Zainab Ahmed says the closure of the nation’s land borders is partly responsible for the rising inflation in Nigeria.

 

The Minister stated this on Wednesday in Abuja, while fielding questions from State House Correspondents after the weekly Federal Executive Council (FEC) meeting.

 

She said at eleven-point-six-one-percent, which is a slight increase by 2-basis point between September and October, was due to food inflation rise which she said will be moderated as the border closure impact fizzles out.

 

Zainab further explained that the closure of the borders was a temporary measure adopted by the Federal government to protect the economy against unfair trade deals by neighbouring countries.

 

But Minister of Information and Culture, Alhaji Lai Mohammed was quick to state that the increase in inflation is not totally as a result of border closure, adding that the gains of the closure far outweighs the loss.

 

The Finance Minister added however that Nigeria's economy is on positive track with third quarter Gross Domestic Products (GDP) growth at 2.38 per cent in year-on-year terms.

 

According to the Minister a total of 34 out of 46 economic activities grew in this third quarter when compared to 2018, driven largely by the growth in the oil sector which grew by 6.47 per cent and the non-oil sector rise by 1.85 per cent.