The Centre for the Promotion of Private Enterprise (CPPE) has emphasized the need for the Nigerian federal government to prioritize the resolution of power supply, foreign exchange crisis, and transportation issues in order to curb the persistently high inflation rate in the country for the past nine months.
In a statement on Monday, Muda Yusuf, the Director of CPPE, expressed deep concerns over the September inflation figure, which soared to 26.72 percent. Yusuf particularly highlighted the alarming impact on poverty, as the purchasing power of Nigerians has significantly declined in recent months.
Yusuf attributed the rising inflation in Nigeria to multiple factors, including the devaluation of the exchange rate, skyrocketing transportation costs, logistical challenges, illiquidity in the forex market, exorbitant diesel prices, and the adverse effects of climate change.
According to Yusuf, a viable solution to the escalating inflation crisis lies in addressing the challenges faced by the power, forex, and transportation sectors.
The economic think-tank group at CPPE has called for immediate attention and urgent measures to be taken in the power and energy sectors, in order to effectively combat the soaring inflation.
“We need to declare a state of emergency in the energy and power sectors. Without fixing the issues in power, logistics, and forex, it will be an arduous task to rein in inflation,” Yusuf stated.
However, he also acknowledged the complexity of these challenges, stating, “Regrettably, there are no quick fixes in these areas. Nonetheless, it is crucial to prioritize these issues and implement efficient strategies to accelerate progress.”
