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Experts urge CBN to introduce more measures to check inflation


News » Business
Nigeria

Some financial experts on Saturday urged the Central Bank of Nigeria (CBN) to introduce more measures to check the rising rate of inflation in the country. They said in separate interviews in Lagos that the current high inflation rate could retard the growth of the economy.

NAN reports that the inflation rate, which was released by National Bureau of Statistic recently, showed that inflation rate stood at 11.2 per cent in April and rose to 12.7 per cent.

Dr Samuel Nzekwe, the immediate past President of Association of National Accountants of Nigeria (ANAN) said that the real sector that had been dormant for some time and   should be reactivated to produce more goods and services.

``The ability of the real sector to produce more goods and services in a conducive environment will bring down the inflation rate because there will be more goods for local consumption and for exports,’’ Nzekwe said.

He said that in an environment where there was no constant electricity supply and infrastructure was in a state of deterioration, any goods and services produced would be costly.

Nzekwe said that the government needed to create an enabling environment so that goods and services could be produce at reduced cost that would bring down the inflation rate in the country.

He said that the government should apply advanced technology in the agriculture sector by changing from the traditional system of farming to mechanised farming.

Nzekwe said that this would encourage more people to go into agriculture and reduce urban migration.

Dr Tunde Adeoye, Senior Lecturer in the Department of Economics, University of Lagos said that the major cause of  persistent increase in inflation rate was due to failure of the CBN in applying macro-economic policies.

``The effective implementation of monetary policy by the apex bank will reduce the inflation rate in the country,” he said.

Adeoye said that the cost of fuelling generator by some companies had impacted negatively on the cost of production which contributed to the rise in inflation rate.

He said that all manners of costly goods were being imported into the country, ``which means a direct importation of higher prices into Nigeria.’’

Adeoye suggested that a ban should be placed on the importation of certain goods to check inflation.

He, however, suggested that price control measures on certain commodities should be adopted.  

Dr Kazeem Bello, a lecturer in the Department of Economics at the University of Ibadan, attributed the rise in inflation rate to shortage of some essential goods and services, especially agricultural products.

Bello told NAN in telephone interview that government had left the development of the agricultural sector to rural dwellers that practiced subsistence farming.

He said that the removal of fuel subsidy in January contributed to the continuous increased in the inflation.

Bello said that the removal caused the cost of transportation to go up, which in turn affected the cost of production leading to increase in inflation rate.

Article credit: Businessday Newspaper

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Updated 5 Years ago
 

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