Agriculture
SOME financial experts have urged the Federal Government to establish more farm settlements to achieve self-sufficiency in food production and moderate food prices.
They made this call in separate interviews with the News Agency of Nigeria (NAN) on Sunday in Lagos.
Prof. Tunde Adeoye of the Department of Economics, University of Lagos, said that the government could consider creating farm settlements in regions where Nigeria has a comparative advantage in agricultural production.
He added that such efforts would help to tame the rising inflation and provide solution to structural issues within the economy.
“These settlements, equipped with key infrastructure, could accommodate young farmers for months until harvest.
“This would boost food production and help reduce food-induced inflation,” Adeoye said.
He also stressed the need for innovative solutions to resolve the herder-farmer conflict and improve the business environment to encourage more local modular petroleum refineries.
Adeoye further urged the government to support the Nigerian National Petroleum Company Ltd. (NNPCL) in moderating commodity prices to help curb inflation.
Similarly, Dr Ayo Teriba, Chief Executive Offficer (CEO) of Economic Associates, advised the government to adopt macroeconomic policies that would attract more Foreign Direct Investment (FDI).
He added that such policies should also boost external reserves and stabilise the foreign exchange market, thereby reducing the inflation rate.
He said that improved external reserves would lead to lower interest rates, making borrowing more affordable.
Teriba mentioned that the current administration inherited 33 billion dollars in external reserves in 2023.
Meanwhile, Mr Chris Nemedia, a former Director, Research Department, Central Bank of Nigeria (CBN), suggested reinstating some form of petroleum subsidy to help moderate inflation.
“Every government subsidises something for its citizens, whether it’s agriculture in the U.S. or healthcare in the U.K. Nigeria should do the same for refined petroleum, given its wide impact on the economy,” Nemedia said.
He also cautioned against fully implementing recommendations from Bretton Woods institutions, noting that they might not serve the country’s best interests.
Nemedia highlighted the importance of fixing key infrastructure, particularly the road network, for economic growth.
NAN recalls that Nigeria’s headline inflation rate for September rose to 32.70 per cent, a marginal increase from the 32.15 per cent recorded in August, reflecting ongoing price pressures.
Year-on-year, inflation surged by 5.98 per cent when compared to 26.72 per cent in September 2023.(NAN)
27th October, 2024.
C.E.
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