CBN’s efforts to tame inflation not yielding result- Expert
As the country awaits the National Bureau of Statistics(NBS) September inflation report, a Financial Inclusion, Wealth Management expert, MD/CEO SD & D Capital Managment Limited, Mr Idakolo Gbolade has disclosed that the efforts put forward by Central Bank of Nigeria(CBN) to tame the surging inflation is not yielding result.
Gbolade made this disclosure in a chat with NewsDirect Newspaper on Thursday.
He explained that the country’s apex Bank, has utilized available means within it disposal to curtail the inflation rise but there is no immediate result.
Nigeria’s inflation rate surged to 20.52% in August, rose from 19.64% in July, according the report from National Bureau of Statistics (NBS).
The figure has continued to generate concerns from stakeholders because the Nation’s poverty index is on a steady rise.
The implication is that Nigerians purchasing power has continued to wane following sharp increase in food prices. The value of Nigeria’s currency, Naira has also dropped.
“The measures adopted by the CBN to tame inflation so far has not yielded the desired result. When in the last MPR meeting the CBN increased the MPR rate for the third consecutive time by 100 basis points to 14% from 13%. The major reason was to reign in on inflation but that had failed with the current inflation figure”, Idakolo said.
“The CBN has used all the tools in its disposal to stem inflation to no avail and this can be attributed to other macroeconomic factors that is affecting inflation which has not allowed inflation to abate.
“The implications on the economy is enormous as we see rising food inflation which has lead to sharp rise in the cost of food items.
“The cost of doing business in Nigeria has also risen which will affect the manufacturing sector coupled with increase interest rate on lending by commercial banks. The poverty level is sure to rise bringing more people into the poverty bracket.
“The value of our Naira to other major currencies has also weakened which will lead to continous devaluation of the Naira and less value in the hands of Nigerians”, he stated.
Meanwhile in his forecast of the forthcoming inflation figures, Gbolade said, “In my opinion, I do not see the inflation receding putting into consideration that 2023 is an election year and much might not be done by the outgoing government as regards the economy”.
NBS is expected to published September inflation figures in two days time.
