Experts proffer ways to reduce inflation

Some financial experts have urged the Federal Government to adopt macro economic policies that would enhance production, moderate inflation and ensure price stability.

They disclosed this in separate interviews with our correspondent on Monday in Lagos.

They also said tackling insecurity threats would improve food output and engender investors confidence.

The Head, Economics, Caleb University, Lagos, Prof. Ndubuisi Nwokoma, highlighted the importance of enhancing the production environment to check inflation.

“Although the macro economic indicators are getting better, more stability in the foreign exchange market is key for the manufacturing sector.

“This will enable them to expand locally and produce substituted imported commodities as well as ameliorate imported inflation,” Nwokoma said.

He also urged the government to invest more in mechanised agricultural productions and in its value additions to accelerate economic growth and development.

Also speaking, former President of the Chartered Institute of Bankers of Nigeria, Mr Okechukwu Unegbu, called for more support for production as panacea to check inflation.

“The government should invest in key infrastructure such as reliable electricity, deepening of the sea ports and a functioning railway system to spur domestic productions to expedite growth and self reliance,” Unegbu said.

He stressed that the government should continue to adopt innovative ways in ameliorating the security threats in the country.

Unegbu noted that their actions were undermining investment inflows and the growth of the agricultural sector.

The former Director of Research of the Central Bank of Nigeria, Mr Chris Nemedia, called on the government to reduce borrowings because of its impact on inflation.

“The government should be innovative in executing its projects so as not to secure too many foreign loans from international developmental partners.

“Such loans must be serviced with our scarce foreign exchange which will reduce the volume and fuel inflationary optic,” Nemedia said.

He emphasised that the government should invest in key infrastructure so as to spur production.

“Government should accord priority in fixing interstate roads that will support conveying agricultural produce from the hinterland to urban areas.

“This will reduce post harvest losses and food induced inflation may continue to decline,”Nemedia said.

Our correspondent recalls that the National Bureau of Statistics (NBS) has said Nigeria’s headline inflation rate eased further to 16.05 per cent in October.

The NBS disclosed this in its Consumer Price Index and Inflation Report for October.

According to the report, the headline inflation showed a decrease of 1.96 per cent compared with the 18.02 per cent recorded in September.

The report said on a year-on-year basis, the headline inflation rate was 17.82 per cent lower than 33.88 per cent recorded in October 2024.