Nigeria’s rising inflation has become worrisome and is escalating Nigeria’s poverty situation, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf has said.
Nigeria’s inflation has assumed an upward trend again with December figures climbing to 15.63 per cent after eight months consecutive decline.
On Monday, the National Bureau of Statistics said Christmas spendings skyrocketed the figures up from the 15.40 per cent recorded in November, 2021.
Nigerians are battling a high rate of unemployment which is at 33.3 per cent, while food prices are moving higher in the markets.
Yusuf said high inflationary pressures remain a major concern to stakeholders in the Nigeria economy.
He said, “High food prices which impacts adversely on citizens welfare and aggravates poverty. Weak purchasing power which poses significant risk to business sustainability.
“Escalation of production and operating costs for businesses, lead to erosion of profit margins, drop in sales, decline in turnover and weak manufacturing capacity utilization. Price volatility undermines investors’ confidence.”
There are projections that the apex bank may increase interest rate above the 11.5 per cent held for months to curb inflation.
But for the CPPE boss, policy makers need to “Reduce fiscal deficit financing by the CBN to minimize incidence of high-powered money in the economy and manage climate change consequences to reduce flooding and desertification.
“Ensure the restoration of normalcy and good order at the nation’s ports to reduce transaction costs.”
He said there is need to reduce import duty on intermediate products and raw materials for industries to reduce production costs, especially in the light of the sharp depreciation in the exchange rate.
The CPPE CEO also enjoined the government to address the security concerns causing disruption to agricultural activities.