Prof. Akpan Ekpo, Chairman of the Foundation of Economic Research and Training, has urged President Bola Tinubu’s federal government to address three priority areas in the medium term.
According to NAN, Ekpo advised the federal government on Tuesday to cut the cost of governance, solve insecurity, and address rising Inflation.
He spoke about his expectations from the new minister amid the rising Inflation in the country, which hit 24.08 percent in July, according to the National Bureau of Statistics (NBS).
According to Ekpo, Nigeria’s Inflation is not demand-driven; it is a cost-push created by subsidy removal and increased utilities.
“So, the ways of fighting it, now, is if we can curtail expenditure, which I doubt because already they are expanding the cost of governance, and that is an expenditure, and if you keep spending, that is the fiscal side, it will affect prices.
“The other way is to deal with the issue of security because if you look at inflation components, the food aspect is raising the inflation rate.
If you can solve security and let farmers go to their farms and the food component comes down, you could deal with Inflation.
“Again, don’t forget that the hardship during the attempt to redesign the currency during that period has not been captured yet by the NBS; so, I see Inflation to keep rising.
“My only worry is that it does not become what we call run-away inflation where we have no control,” he said.
The expert also blamed the rising Inflation on exchange rate unification.
He said, “The other problem, too, is when they opened up the foreign exchange market for rate unification; the problem with the exchange rate in Nigeria is the supply side and access; we have seen that the margin has returned.
“So, Inflation passing through the exchange rate will be automatic; there is no way we can stop Inflation because you will now need more Naira to buy dollars.
“This will continue until we have a productive economy where we export non-oil goods and services and earn foreign exchange; we will still have that problem with inflation.”
Media Talk Africa had reported that the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, during the inaugural meeting of the Federal Executive Council, unveiled Tinubu’s eight priority agenda which includes food security, ending poverty, economic growth and job creation, access to capital, improving security, improving the playing field on which people, particularly companies, operate, the rule of law, and fighting corruption.
