With inflation continuing to squeeze Nigerian households, the Central Bank of Nigeria (CBN) has emphasized the need for strategic investments in food storage, transportation, and supply-chain infrastructure to combat rising prices.
At the February 2025 Monetary Policy Committee (MPC) meeting, top CBN officials agreed that inflation in Nigeria is largely driven by structural challenges rather than just monetary factors. They stressed that without addressing these deep-rooted issues, inflation will remain a persistent threat.
Food Storage & Transport: The Missing Piece?
Aku Odinkemelu, a committee member and board executive at Nord Oil APS & Energy Services, highlighted that Nigeria’s inflation is fueled by supply-side constraints in agriculture, infrastructure, and energy. He pointed out that the country’s newly rebased inflation measure, which places greater weight on core inflation (housing, healthcare, and electricity costs), reinforces this reality.
“The CBN must work closely with fiscal authorities to develop policies that ease supply-side shocks,” Odinkemelu stated.
Echoing this stance, Muhammad Abdullahi, CBN’s Deputy Governor for Economic Policy, emphasized the urgent need for investments in transportation and food storage facilities. He noted that, just as improved refining capacity has helped lower petrol prices, targeted investments in agricultural infrastructure could significantly reduce food inflation.
Structural Reforms Key to Long-Term Stability
Other MPC members also weighed in on solutions. Aloysius Ordu, a senior fellow at Brookings, pointed out that easing global inflation and increasing foreign investment in Nigeria’s non-oil sectors present opportunities for sustained economic growth.
Meanwhile, Bandele Amoo, Managing Director at EcoDonini Solutions Ltd, expressed optimism that the 2023 Electricity Act, if properly implemented, could further stabilize inflation by addressing power sector inefficiencies.
The Road Ahead
The MPC concluded that inflation control must go beyond traditional monetary policies. Experts agree that fixing Nigeria’s broken supply chains—through better storage, efficient transport networks, and stable energy supply—will be crucial in tackling inflation sustainably.
