Govt Links Inflation to Border Closure

The Federal Government has admitted that the rise in inflation in October  can be linked to the closure of land borders.

The Minister of Finance, Budget and National Planning, Hajiya Zainab  Ahmed, who disclosed this yesterday after Federal Executive Council (FEC) meeting presided over by President Muhammadu, added  that the closure  of the land borders was a temporary measure.

Nigeria’s annual inflation rate increased to 11.61 percent in October 2019  from 11.24 percent in the previous month, reaching the highest since May  of 2018.

Hajiya Ahmed said the borders closed in August this year would be re-opened as discussions with neighbouring States had reached an advanced  stage.

The minister, who said the federal government expected that the outcomes of the discussions and agreements would make each party to respect the  protocols they all committed to in order to open the borders again, stated  that “What we are doing is important for our economy.”

She said since the country had signed up to the African Continental Free  Trade Area (ACFTA) agreement, the government had to make sure that it  put in place checks to make sure that the economy would not be overrun as a result of the coming into effect of the ACFTA.

“That is why we have this border closure to return to the discipline of  respecting the protocols that we all committed to,” she added.

In his contribution, the Minister of Information and Culture,Lai Mohammed, however, added that the country could no longer subsidise other nations,  urging neighbouring countries to respect ECOWAS protocols.

Mohammed said West African neighbours would repackage good from  other nations with a view to importing them to Nigeria.

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