Govt tasked on interventions as fuel price rises, naira depreciates

The federal government has been urged to come up with urgent intervention to address the challenges bedeviling the supply side of the economy, address production and productivity constraints, fix the dysfunctional forex policy, and institution of fiscal reforms to curb escalating deficit spending.

This advice was given by the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, CPPE, Dr Muda Yusuf, while reacting to the headline inflation which accelerated to 21.09 per cent in October as against 20.77 per cent in September.

Govt tasked on interventions as fuel price rises, naira depreciates

Govt tasked on interventions as fuel price rises, naira depreciates

While noting that key factors fueling inflation have not been curtailed, the economist said accelerated growth in fiscal deficit financing by the Central Bank of Nigeria (CBN) is heightening liquidity in the economy with consequences for soaring inflation.

According to the National Bureau of Statistics (NBS), October’s inflation figure is 5.09 per cent points higher compared to 15.99 per cent recorded in October 2021.

“This shows that the general price level for the headline inflation rate increased in October 2022 when compared to the same month in the preceding year. Meaning that in October, 2022, the general price level was 5.09 per cent higher relative to October 2021.’’

Meanwhile the Group Managing Director, Parthian Partners, Oluseye Olusoga, urged Nigeria to return to the path of productivity in order to save the country from foreign exchange crises.

Speaking at a session of the Nigerian Economic Summit (NES28) held in Abuja, he said the solution to the problem of forex crisis is not by shifting blame by government agencies. He called for synergy between the nation’s monetary and fiscal policy that will ensure that the nation dwells more on production.