Economic experts have urged the Federal Government to adopt innovative policies that will boost domestic production and address the security challenge responsible for the persistent rise in the inflation rate.
They said this in separate interviews on Wednesday in Lagos.
Austine Nwaeze, an economics lecturer at the Pan Atlantic University, said the government should initiate policies that would enhance productivity in the country.
“The government could ensure that access to raw materials is available for local producers through its backward integration programmes.
“Issues relating to multiple taxation needs to be addressed to reduce the headwinds associated with domestic production,” Nwaeze said.
He urged the Federal Government to invest more in key infrastructure that would stimulate the growth of the productive sector.
“More investment in regular provision of electricity is needed to ensure domestic manufacturers operate optimally.
“The government should also sustain its investment in railway services to ensure an efficient and affordable transport system for businesses,” Nwaeze said.
Also, Muda Yusuf, the chief executive officer at the Centre for the Promotion of Private Enterprise, said the Federal Government should adopt a new strategy to check the security challenges fueling food inflation.
“More collaboration among the three tiers of government is needed in providing intelligence to the authorities to bring the challenges under control,” Yusuf said.
This, he said, would encourage farmers to begin cultivation in the food belt states in order to raise food output.
He noted that the Federal Government must address the rising cost of transportation, one of the major causes of inflation in the country.
“The cost of transportation is on the increase and partly responsible for the exorbitant prices of commodities,” Yusuf said.
He added that the monetary authorities should pay more attention to addressing the depreciating value of the local currency because of its effect in fuelling rising inflation currently.
Also speaking, Godwin Anono, president, Standard Shareholders Association of Nigeria, advised the Federal Government to continue to support more private investments in the refined petroleum sector to check importation.
“Having more privately-owned refineries will enable the country to achieve self-sufficiency and reduce the inflationary increase that is associated with importation. The government can save its scarce foreign exchange and reallocate to other productive sectors of the economy,” Anono said.
He urged the Federal Government to put in place measures that would ameliorate the impact of climate change on food production.
Nigeria’s annual inflation rate rose to 22.41 per cent in May from 22.22 per cent in the previous month, according to the National Bureau of Statistics.
The statistics office said the May 2023 inflation rate showed an increase of 0.19 percent when compared to the April figure