…..Experts list ways out of rising inflation rate
Some financial experts have urged the Federal Government to allocate more foreign exchange into the financial system to address illiquidity and tackle food insecurity challenges due to rising inflation.
They said this in separate interviews in Lagos on Friday.
They also said that implementing these measures could contribute to stabilising prices, enhancing domestic production, and achieving greater food security for the country.
Prof. Sheriffdeen Tella, Head of Department of Economics, Olabisi Onabanjo University,
said to curb the rising inflation rate, the government needed to earmark more foreign exchange to address the illiquidity in the market.
Tella said this could be achieved by addressing issues such as oil theft and increasing exports to the international market.
By doing so, he noted that the country could earn more foreign exchange and meet the demands of the economy.
Tella further said that addressing issues related to currency speculators, which are caused by inadequate supplies of foreign currency, would be minimised.
The expert suggested that the government could control the rising inflation rate by supporting privately-owned petrochemical plants to start production locally.
This approach, he explained, would enable the country to meet its refined petroleum needs domestically and encourage competition, leading to a reduction in commodity prices.
“The huge foreign exchange, often earmarked for its importation will be conserved, which often times put so much pressure on our external reserves,” Tella said.
He noted that the federal government should adopt innovative policies that would spur the growth of domestic producers, to reduce importation into the country.
Also, the President of the Standard Shareholders Association of Nigeria (SSAN), Mr Godwin Anono, highlighted the importance of the government proactively addressing insecurity challenges that led to food price increases.
He emphasised the need for collaboration between the federal government and sub-national entities to enhance surveillance capabilities to prevent insecurity threats from escalating further.
He said this was, particularly, crucial in states that serve as food hubs and frequently experience conflicts between farmers and herders, which negatively impact food production.
The SSAN president advised the federal government to increase the budgetary allocation to the agricultural sector to strengthen food security.
Also, speaking the President, Standard Shareholders Association of Nigeria (SSAN) Mr Godwin Anono, said the government should be more proactive to deal with the insecurity challenges occasioned by food price increases.
“The need for thee federal government to collaborate with the sub nationals to deploy sovelance assets more is now, and deal with the insecurity threats before its becomes a full-blown problem.
“This is, particularly, in the food hub states of the country, where there is often farmers herders crisis negating our food output,” Anono said.
He noted that the federal government could increase the budgetary allocation to the agric sector to enhance food security.
According to him, by providing more resources to the agricultural sector, the government can modernise agricultural practices and strive for self-sufficiency in food production, consequently reducing the need for imports.
“More governmental allocation to the agricultural sector is imperative to modernise its practices, so as to achieve self sufficiency in food production and curb its importation.
“Less than three percent earmarked for the sector in the 2023 budget is inadequate to enhance our food supplies and curb the food induced inflation rate,” Anono said.
Nigeria’s headline inflation rate rose to 28.20 per cent in November from 27.33 per cent in October.
The figure presents the eleventh times’ hike in Nigeria’s inflation headline inflation rates in the year.
