By Ogaga Ariemu
Nigerian economists and financial analysts said the federal government must reevaluate its policies around critical sectors such as manufacturing, agriculture, and energy sectors to bring down rising inflation.
Professor Godwin Oyedokun, a don at Lead City University in Ibadan and the Chief Executive Officer of SD & D Capital Management, Gbolade Idakolo, disclosed this in separate interviews with DAILY POST on Monday.
This comes as Nigeria’s headline and food inflation rose further to 34.60 percent and 39.93 percent in November 2024.
Reacting, Oyedokun said the country’s rising inflation reflects a challenging economic environment for Nigerians.
According to him, the development is worrisome as high inflation erodes purchasing power and makes it difficult for households to meet basic needs.
“The latest inflation figures, particularly the rise to 34.60 percent and food inflation hitting 39.93 percent, reflect a challenging economic environment for Nigerians. High inflation erodes purchasing power, making it increasingly difficult for households to meet basic needs,” he stated.
He noted that the situation calls for an urgent need for effective policies in critical sectors to stabilise prices and alleviate the burden on citizens.
“This situation underscores the urgent need for effective economic policies and interventions that can stabilise prices and alleviate the burden on citizens.
“Regarding the Central Bank of Nigeria’s Monetary Policy Committee, CBN MPC, if they are perceived to be engaged in an “aimless chase” in addressing inflation, it suggests a disconnect between their policies and the realities on the ground. It may indicate a need for a reassessment of their strategies, including possibly reevaluating interest rates or implementing measures that directly target inflationary pressures, especially in critical sectors like food and energy,” he added.
On his part, Idakolo said November’s inflation rate is a reflection of the situation of the Nigerian economy.
He noted that manufacturing, agriculture, and other critical sectors are yet to be positively impacted by the government’s interventions.
“The inflationary trend is a reflection of the situation of the economy despite the very good efforts of the Central Bank of Nigeria and the Federal Government. The manufacturing sector, which is one of the engine rooms of economic activities, is struggling, and other government policies have not found their footing. The agricultural sector still has various challenges that have given rise to increased food inflation. There is still insecurity in agrarian communities, high transportation and logistics costs, and the decreasing strength of the Naira. The continuous hike in the interest rate has not stemmed inflation. Instead, it has increased the cost of doing business in Nigeria drastically.
“The federal government needs to come to terms with the realities on the ground and ensure stability in the economy by looking into critical sectors of the economy to overhaul it for better efficiency,” he stated.
