Nigeria remains one of the most richly endowed nations with natural resources but the economy has nothing to show for it.
Over the last 2 decades, things have gone from bad to worse, even in the face of the rich resources.
Inflation, just like corruption, has eaten deep into the fabric of the economy, sapping it of the needed vitality to grow.
The malnourished economy struggles for life because Nigerian leaders you may say lack the political will to take far-reaching decisions that will upgrade the economy.
It is on this premise that a stakeholder has suggested to the government, ways out of the inflation problem
Adewale-Smatt Oyerinde
The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, has reacted to the issue of rising inflation in the country.
He said headline inflation rose to 28.92% in December 2023 from 23.75% in December 2022.
This was according to data sourced from the Nigerian Bureau of Statistics (NBS).
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Ways To Resolve Inflation Problem
Oyerinde highlighted ways through which Nigeria can fight inflation.
“To address this issue of high and rising inflation in the economy, it is important to entrench and sustain productive FX management through adequate intervention in the forex market.
This can only be done by the Central Bank of Nigeria,” Oyerinde said.
The NECA boss added that the CBN can stabilise the economy by regulating its current reduction of money in circulation to an optimum quantum.
Oyerinde urged the Government to be proactive in terms of its promises for agricultural production as contained in the 2024 budget.
There is also the need for the Government to improve food and domestic production of raw materials.
“This will reduce the importation of food-related items and raw-materials items to save up FOREX for the economy.”
“The Government should ensure that peace is brought back to the nation’s crisis-ridden areas.
”Invest in sustainable agricultural methods, and upgrade infrastructure to tame prices and increase food production,” Oyerinde said.
Inflation Is Affecting Exchange Rate
“Today, in the black market, naira exchanges at ₦1300/1$ and ₦878.55/1$ in the I&E window, which feeds into inflation,” he said.
“The monetary policy is at 18.75% just to maintain an appreciable real interest rate to drive investment.”
”CBN is reducing the volume of money in circulation, which is driving prices upward.”
“The rising food cost would further put a strain on household budgets, and elevate food insecurity,” Oyerinde said.
There Is Need For Immediate Action
“Thus, immediate action is required to reverse the trend.
Effective solutions that support Nigeria’s food security and stability must be developed and implemented.”
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He opined that there is no doubt that households’ real incomes have been grossly eroded within this period.
The high inflation rate has negatively affected business metrics in terms of capacity utilisation.”
Many others have cut down production, experiencing low sales and profit margins,” Oyerinde said.
