2022 :. Economic expert advises CBN on measures to tackle inflation
* Calls for review of trade policy
As 2022 economic year begins, Dr Muda Yusuf, the Chief Executive Officer, Centre for Promotion of Private Enterprise (CPPE), has advised the Central Bank of Nigeria (CBN), on measures to put in place, in order to tackle inflationary pressure on the nation’s economy.
Dr Muda Yusuf, who is also an economist said :
“To tackle inflation, we need to address the key drivers of inflation in 2022, as follows:
Boost productivity in the economy to drive output growth. Stem depreciation of the naira exchange rate.”
He added :
“Address illiquidity in the foreign exchange market. Minimise monetisation of fiscal deficit. CBN financing of deficit should be strictly limited to statutory threshold spelt out in the CBN Act.
“Government should seek creative ways of addressing insecurity, in order to pave the way for farmers to return to their farms.
“We need to address cost of logistics. We also need to address ease of cargo clearing at the ports. Climate change should be addressed as well. We need to review our trade policy to bring down the cost of some intermediate products for manufacturers.
“Manufacturers across all products segments need respite, especially in the light of the unprecedented escalation of production and operating costs.”
His words :
“As at January last year, headline inflation was 16.47% and rose to a peak of 18.17% in march 2021 and decelerated incrementally to 15.40% in November 2021.
” However, headline inflation has been on the increase on a month- on- month basis from January 2021 to date. Meanwhile, food inflation has been consistently higher than headline inflation and core inflation for most parts of last year.”