Economy
THE Centre for the Promotion of Private Enterprises (CPPE) says the country’s inflation outlook for 2025 promises to be positive.
The CPPE Chief Executive Officer, Dr Muda Yusuf, said this while reacting to the December inflation figure released by the National Bureau of Statistics on Wednesday which stood at 34. 80 per cent.
The News Agency of Nigeria (NAN) reports that the increase in the December headline inflation was marginal at 0.20 per cent compared with November inflation figures of 34.60 per cent.
The hike was primarily driven by the increased demand for goods and services to celebrate the festive season.
Yusuf, however, hinged his projected positive inflation metrics on sustained moderation in exchange rate volatility and improvement in foreign reserves.
He added that the prospects of easing geopolitical tensions with the inception of Donald Trump’s presidency in few days time would positively impact inflation rate.
He, however, urged the Central Bank of Nigeria to pause on monetary policy tightening and interest rate hikes to ensure further moderation in inflammatory pressures.
This, Yusuf said, would reduce business operating costs.
He also advocated a reduction in fiscal risks to macroeconomic stability through a reduction in fiscal deficit and deceleration in public debt growth.
“Inflationary pressures continue to be a troubling feature of the Nigerian economy as reflected in the December inflation numbers.
“CPPE is worried about the current fixation of the National Assembly on revenue, especially the arbitrary revenue targets for Ministries, Departments and Agencies (MDAs).
“Excessive pressure on MDAs to boost revenue and increase Internally Generated Revenue has profound inflationary implications,” he said.
Yusuf noted that in reality, such pressures were invariably transmitted to investors in form of higher fees, levies, penalties, import duties and regulatory charges, among others.
These outcomes, he said, were in conflict with government aspirations to boost investment, curb inflation and create jobs.
He noted that revenue targets should be based on empirical studies, absorptive capacity of the economy and due consideration of the wider economic implications.
“Obsession with revenue would hurt investments, worsen inflationary pressures, aggravate poverty and impede economic growth.
“There should be a careful balance act between revenue growth aspirations, desire to boost investment and commitment to moderate inflation,” he said.(NAN
15th January, 2025.C.E
Tags: Centre for the Promotion of Private Enterprises
