Inflation: Don urges FG to sustain stimulus programmes to boost real sector

A don, Dr Ovat Oyama, says there is the need for the Federal Government (FG) to sustain its stimulus programmes to boost the real sector and curb spike in inflation.

Oyama, who is a Senior Lecturer at the University of Calabar, Cross River, spoke with our reporter in Lagos on Monday.

He noted that disbursing the Federal Government’s N2trillion stimulus funds would shore up productivity in the economy.

“The intervention funds will improve the general economy that has been affected by the coronavirus pandemic.

“The real sector will get a boost as the exorbitant prices of most commodities will begin to dip with time,” he said.

According to Oyama, the Central Bank of Nigeria (CBN) should curb the spike in inflation rate by accommodating more farmers into its various schemes.

“Incorporating more farmers into mechanised agricultural programmes will boost food output.

“This is because food produce is one of the major factors driving up the inflation rate and must be given priority to ensure self sufficiency in the country, “ he said.

Oyama urged governments to build roads in the hinterlands to connect the farms to the markets, in order to check post-harvest losses.

It was reported that Nigeria’s inflation rate rose further in June 2020 to 12.56 per cent (year-on-year), 0.16 per cent points higher than the rate recorded in May 2020 (12.4 per cent).

This is according to the latest CPI report released by the Nigerian Bureau of Statistics.

The report also showed that composite food index rose to 15.18 per cent compared to 15.04 per cent recorded in May 2020.