The Nigeria Employers’ Consultative Association (NECA) has raised an alarm over the soaring inflation in the country and urged the government to take immediate steps to stabilize the foreign exchange market and address the economic crisis.
In a recent statement, the director-general of NECA, Adewale-Smatt Oyerinde, emphasized the urgent need for the federal government to intervene in the forex market to effectively manage foreign exchange and combat the alarming inflation rates. Oyerinde highlighted the potential dire consequences of the rising inflation, particularly on food security and the standard of living for Nigerian households.
According to the latest report by the National Bureau of Statistics (NBS), the inflation rate surged to 28.92 percent in December 2023, marking a significant increase from 23.75 percent in the previous year. The NBS data also revealed that food inflation played a significant role in driving the overall inflation, reaching a staggering 33.93 percent.
Oyerinde stressed that while a moderate inflation rate of 3-5 percent could be beneficial for the economy, the current double-digit inflation poses a severe threat to economic stability. The average inflation rate from July to December 2023 was recorded at 26.84 percent, indicating a deeply concerning trend that demands immediate attention from the government.
In light of these distressing developments, NECA has called for the monetary authority to strategically manage the circulating money supply and strive to achieve a balanced economic equilibrium. The association emphasized the critical need for sustained efforts to curtail the escalating inflation and prevent further deterioration of the economy.
As the nation grapples with the far-reaching impacts of inflation on essential commodities and the livelihoods of its citizens, the urgency of governmental intervention in the forex market cannot be overstated. NECA’s plea serves as a poignant reminder of the pressing need for proactive measures to mitigate the adverse effects of inflation and restore stability to Nigeria’s economy.
Amidst the mounting concerns over inflation, all eyes are now on the government to heed NECA’s call and implement swift and effective interventions to bolster the foreign exchange market and safeguard the nation’s economic well-being.
