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Nigeria's Inflation: How to create self-sustaining economy through local production

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Nigeria's battle against inflation has continued despite a recent strengthening of the naira.

According to the National Bureau of Statistics’s Consumer Price Index (CPI) report released on Monday, “On a year-on-year basis, the headline inflation rate was 11.16% points higher compared to the rate recorded in March 2023, which was 22.04%.” This means the annual inflation rate rose to 33.20 per cent in March from 31.70 per cent in February.

Business management and development expert, Cletus Illugo, who spoke on Nigeria Info's Hard Facts programme about this, stressed the need to address production shortfalls alongside currency management.

While applauding the government's efforts to curb speculation, Illugo said long-term solutions lie in boosting local production. A thriving production sector, he argues, would empower the naira by increasing disposable income and creating a self-sustaining economy.

“When we tackle regulatory policies and programmes, which the government is doing well, and we encourage local production, then naira will be empowered against dollar. And then there will be job creation, internal flow of income, leading to growth, leading to reduction in poverty, and leading towards the total wellbeing of the people,” he said.

The crux of the issue, according to Illugo, lies with the state governments. He proposes a focus on comparative advantage at the state level, with targeted investments in sectors where each state excels. He also advocates for a holistic approach to strengthening the "agribusiness value chain," from production and processing to marketing and export, which is key.

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