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Four Things Nigeria Must do to Control Inflation

A former Director General of the Lagos Chamber of Commerce and Industry [LCCI], Dr. Muda Yusuf, has offered short-term and long-term solutions to Nigeria's rising inflation. 

Dr. Yusuf told Sheriff Quadry on the Morning Crossfire that the actions could bring some relief to Nigeria's economy.

As a first step, he urged a review of the foreign exchange policy, emphasizing that it is at the heart of foreign trade and capital flows.

The fmr. LCCI boss pointed out how the CBN has downplayed market economists in their administration, which has strained their efforts to expand the market flow.

Furthermore, Dr. Yusuf said improving the country's trade policy is another measure that will help control inflation.

"The government must identify sensitive areas of importation that affect the masses, alleviate the import duties on these items, and give them concessions to boost food production in the country," he explained.

According to the economist, a third solution to keeping inflation in check is to build oil refineries in the country.

 "How can we, as an oil-producing country, having been in the business for more than 60 years, not have a functioning refinery, investments in refineries and pipelines? It is too bad for the economy and it is a policy problem that has driven us to this point."

He emphasised that the government must get the refineries working to reduce mobile fuel costs.

Finally, Dr. Yusuf advised that there must be a good handle on oil theft to reduce the amount of oil being stolen from Nigeria.

Recall that Nigeria’s inflation rose in June to its highest level in more than five years, fueled by rising prices of food and the high cost of diesel.

The inflation rate surged to 18.60 percent in June, up from 17.71 percent in the previous month, according to the National Bureau of Statistics (NBS).

Watch the full video below:

 


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