The Nigerian Employers’ Consultative Association (NECA) has expressed concern over the rising trend of inflation in the country in the past 10 months.
Reacting to the consumer price index report released by the National Bureau of Statistics (NBS), Director-General of the Association, Timothy Olawale says the rise of inflation from 13.71 per cent in September to 14.23 per cent in October suggests that the policy options provided by the Central Bank of Nigeria (CBN) in managing inflation needs critical review.
In a statement released by the association, the DG noted that the persistent increase in food prices, caused by border closures, restrictions in forex market and insecurity predominantly in the northern states is part of issues affecting inflation rate.
He noted that since the deregulation of petrol prices, the country has witnessed petrol increase by almost 30 per cent in the last four months, which suggests a continuous increase in transport cost adding that it has affected the masses negatively.
The DG thereafter suggested that the federal government should roll-out more direct fiscal interventions to aid domestic production, as has been done in the agricultural sector.
He says the interventions should be extended to the mining, manufacturing and other high job creating sectors.
Olawale urged the Federal Government to extend support to the transportation sector most especially the public transport because the sector is outrightly affected by the fuel pump price increase.
The NECA Director-General said ,”while we applaud the various intervention programmes of the Central Bank of Nigeria (CBN) during the COVID-19 pandemic, the apex bank should complement its efforts by synergizing its policies alongside the fiscal authorities in bringing needed growth and development into the economy.
“We urge, as a matter of urgency that concerted efforts should be made across-board to create an environment that will not only attract foreign direct investment, but that will also enable current investors to remain sustainable as a way out of the challenges of a mono-foreign exchange economy.