Experts urge Nigerians to increase production to control rising inflation
Some experts have urged Nigerians to grow the food they eat and be more productive to control inflation.
The experts were reacting to the April inflation rate, which rose to 16.82 per cent, according to the National Bureau of Statistics (NBS), representing a 0.90 per cent rise compared to 15.92 per cent recorded in March 2022.
Prof. Hassan Oaikhenan of the Department of Economics, University of Benin, told journalists on Thursday in Lagos, that the rapid movements in the prices of commodities, especially of food stuffs belied the reported inflation figures.
“Given that the primary issue is an increase in the inflation rate, while acknowledging the magnitude as a secondary issue, the strategies to curb the undesirable inflationary situation is to identify the key drivers of the inflationary situation.
“With food prices accounting mainly for the observed increases, it becomes imperative to articulate and implement policy options to raise the domestic production of goods in the economy.
“To this end, there is the dire need to rev up domestic agricultural output, in keeping with the mantra that we should, as a country grow what we eat and eat what we grow.”
Oaikhenan added that there was need to address frontally the pervasive security challenges which had consistently hampered domestic agricultural production.
He further said there was need to create an enabling environment, especially in providing requisite infrastructure for manufacturing sector players to raise the output of domestically produced goods.
According to him, giving both the agricultural and manufacturing sectors the needed attention will not only boost the economy, it will also engender the much needed control of the inflationary situation in the country.
Also, Ndubisi Nwokoma, a Professor of Financial Economics and Director of the Centre for Economic Policy Analysis and Research, University of Lagos, said the upward trend of inflation in April was not quite a surprise.
“First, the worsening of the exchange rate to almost N600 per 1 dollar in recent times is inflationary. This is worsened by the dramatic fall in capital importation over the past months.
“Second, the retention of MPR at 11.5 per cent for quite sometime makes credit relatively cheaper and thus enhances the pass through effect on the deterioration of the exchange rate through enhanced demand.
“Third, cost push effects, through increased price of diesel, aviation fuel and other production inputs aggravate inflation in the country,” he said.
