FG should activate fiscal tools to tackle inflation – CPPE

The Centre for the Promotion of Private Enterprise, CPPE, said the Nigerian government should activate all fiscal tools to tackle inflation.

Muda Yusuf, the Director of CPPE, disclosed this on Wednesday, while reacting to Nigeria’s latest headline inflation figure.

However, CPPE urged that the Central Bank of Nigeria double down on tightening monetary policy measures through interest rate hikes, which stood at 22.75 per cent in March.

“Persistent inflationary pressures in the Nigerian economy remain a major cause for concern because they impact purchasing power and operating costs for businesses. “Although the key inflation drivers are yet to significantly moderate.

“Meanwhile, we urge the Monetary Policy Committee to soften its monetary tightening stance for the time being. Businesses are yet to recover from the shocks of the recent bullish rate hikes. Monetary instruments should be put on pause while fiscal policy tools address supply-side factors in the inflation dynamics,” it stated.

Nigerians’ economic hardship worsened as food inflation rose to 40.53 per cent in April.