Economy
By Kennedy Nnamani
NIYI Yusuf, Chairman, Nigerian Economic Summit Group has called on the CBN and all stakeholders for more pragmatic actions to reduce inflation in the country.
Yusuf made the call on Wednesday in Lagos at Vanguard Economic Discourse, organised by Vanguard Newspaper with the theme: Taming Inflation and Stimulating Growth: The Place of Fiscal and Monetary Policies.
Yusuf, who was also the keynote speaker at the event, noted that inflationary pressure causes decline in purchasing power just as cost-push and demand-pull inflation on minimum wage also affect inflation in the country.
According to him, six out of every 10 Nigerians face multidimensional poverty due to what he attributed to government not earning enough and not spending right.
“Nigeria spends a large amount on untargeted subsidies and maintains a retail petrol price that is one of the lowest in the world and supported by an opaque regime,” he said.
While recommending the way out of the current situation, Yusuf urged the federal government to strike out subsidies and establish a compact, which protects the poor and vulnerable from its effect.
He said that the government “should increase non-oil revenues through tax net expansion and efficient collection.
Yusuf stressed the need to improve on efficient expenditure and transparency by government, while reviewing all reforms of untargeted subsidies.
He added that there is the need to contain inflation by reducing federal government recourse to CBN financing.
According to him, the CBN should adopt a single market-reflective exchange rate and collaboration between the fiscal and monetary authorities to support the economy.
“Felicitate domestic trade and boost economic value addition through the removal of FX and trade restrictions.
“The CBN also needs to set a clear monetary policy framework that increases access to finance.
“Establish a clear mechanism for alignment of fiscal, monetary, trade, industry and investment policy implementation that reduces conflicts, increases coherence and boosts investor confidence, while ensuring the alignment of economic and social development policies that pursue re-assurable and trackable productivity and employment outcomes,” he suggested.
Importantly, Yusuf underlined the importance of power supply in the growth and development of the manufacturing industries, which in turn would boost the economy.
According to him, there is need to boost access to stable electricity supply through investment in infrastructure and reforms to fix market failures.
KN
Tags: Kennedy Nnamani NESG Niyi Yusuf
