Just a few facts.

1. Nigeria does not produce enough food to feed her citizens...how do I know, well food is expensive because supply is low.

2. Nigeria imports food to make up the difference..Imports are paid in USD

3. Importers prefer "CBN" dollars to fund imports because its "cheaper".

4. If you stop CBN funding food imports, then importers will fund via BDC or "autonomous" sources, at a higher exchange rate.

5. Simply put, imported food will be more expensive tomorrow

Effect?

6. Consumer Price Index is made up of food items, if food prices rise, inflation will rise.

7.If inflation rises, Naira value will fall, meaning more Naira to fund food imports even if demand stays same.

8. Essentially a self defeating circle of high inflation and food prices.

9. To my mind, it's a better idea to deploy a lot of forex to not only import food but process and store locally grown food.

10. This will reduce CPI basket and drop inflation, making Naira "rise" and increasing purchasing power.

Thank you