NESG boss, Awosika, others proffer solutions to rising inflation
…NESG urges CBN to adopt single market reflective exchange rate
By Philemon Adedeji and Oladapo Ajiboye
In a bid to solve raising inflation rate in the country, the Nigerian Economic Summit Group (NESG) has urged the Central Bank of Nigeria (CBN) to adopt a single market reflective exchange rate.
Speaking at the Annual Vanguard Economic Discourse, Themed “Taming Inflation and stimulating growth, the place of fiscal and monetary policies,” held at Civic Centre Victoria Island Lagos, the Chairman of Nigerian Economic Summit Group, Mr. Niyi Yusuf said that some fiscal policies can resolve raising inflation rate.
He said that CBN needs to adopt a single market reflective exchange rate (FX), remove petroleum subsidies while establishing a compact which protects the poor and vulnerable from its effect, Increase government expenditure efficiency and transparency while reviewing all forms of untargeted subsidies, tax waivers and incentives.
Niyi also added that increasing Non-oil revenues through Tax Net expansion and collection efficiency and also developing an integrated fiscal management strategy to expand the funding mix through PPP, innovative structure finance and intervention funds will address issue of inflation.
According to him, there’s a need for collaboration between the fiscal and monetary authorities to support the economy.
“CBN needs to clear Monetary policy framework that increases access to finance, to eliminate risk created by Monetisation of CBN ways and means.
“The apex bank also needs to facilitate domestic trade and boost economic value addition through the removal of FX and trade restrictions.”
Speaking on economic policy coordination reform, he said economic policy coordination can be reformed by reviewing of Federal institutional framework for national economic policy development economic management and market regulations to ensure policies inform regulations that drive market expansion.
He further said that by establishing a clear mechanism for alignment of fiscal monetary trade, industry and investment policy implementation that reduces conflicts increases coherence and boosts investors confidence.
Boosting competition, he said, by embedding it in well aligned policies institutions and carefully sequenced reforms, will build market and investors for longer term investment that drive down cost.
Chairman and Founder, Chair Centre Group,Mrs Ibukun Awosika, also emphasised the need for a holistic cohesiveness between fiscal and monetary policies.
She said that only the right people were needed to rejig the economy without destroying value.
According to her, the manufacturing sector more than any other has suffered the most of the country’s economic woes, leading to flight of labour and investments.
“For those leaving the country, it sounds like good news, but for those that have not travelled before but it has its impact on the country’s ability to have the kind of manpower it needs to thrive.
“Our problems can be solved seeing that we have the might, the ability, the people; what we need is the sincerity of purpose and the media should stop being a partner in destroying the country.
“Remember, elections are coming; use your card, use it well,” she said.
Group Chief Executive, Emerging Africa Capital Ltd.Mrs Toyin Sanni,, said that inflation would likely continue in the short to medium term due to intensified fuel and foreign exchange scarcity.
She suggested the use of several fiscal and monetary policy measures, such as reduction of government’s expenditure, improving infrastructure, increasing exports and transparency and reducing corruption as remedies to tame inflation.
“The CBN can lower money supply, use open market operations to control money circulation, increase transparency, and devalue the currency to increase exports, reduce imports; thus reducing trade deficit and inflation.
“There’s need for the CBN to drive financial inclusion some more by utilising technology,” she said.
The CBN Governor, Mr Godwin Emefiele reiterated the apex bank’s commitment to keeping its eyes on monetary policies, to know when to step in sot as to deliver policies that would regulate money supply.
Emefiele, represented by CBN Lagos Branch Controller, Mr Bariboloka Kayor, assured that the apex bank is doing its best to tame inflation.
“We believe that the economy of Nigeria is in our hands and both monetary and fiscal authorities have to work together,” he said.
Earlier,Editor-in-Chief, Vanguard Newspaper, Mr Gbenga Adefaye, said that the annual economic discourse is a platform for reviews and cross-fertilisation of ideas to proffer solutions to achieve Nigeria’s economic objectives.
