The Association of Corporate Treasurers of Nigeria (ACTN) has urged the Nigerian government to find alternative solutions to inflation without relying solely on interest rate increases. During a recent media briefing for the 2024 Treasury360 Conference and Exhibition, ACTN President Adeyinka Ogunnubi emphasized the need for innovative measures to ease inflation’s impact on corporate treasurers and the economy.
“The government has to look beyond just regulating interest rates,” Ogunnubi stated. He highlighted that with food inflation nearing 40 percent, targeted actions on food transportation, supply chains, and storage could bring immediate relief to Nigerians without increasing borrowing costs.
Ogunnubi further explained that Nigeria’s economic volatility had compelled treasurers to adopt resilient strategies, with this year’s conference theme, “Policy Implications & Building Sustainable Treasury Strategies,” focusing on addressing inflation and interest rate uncertainty. He also criticized “price gouging” within the food supply chain, questioning why local goods like beans should be affected by exchange rates and calling on stakeholders to tackle this pricing inconsistency.
Board member Benedict Ologbosera added that current interest rates, at a staggering 27.25 percent, discourage investment in sectors like agriculture and manufacturing. “Why would anyone venture into agriculture when they can get up to 30 percent returns on fixed deposits?” Ologbosera asked, noting that high rates have forced companies to downsize and cut costs. He also observed that many businesses now favor “cash and carry” models over trade credit to mitigate inflation’s impact on cash flow.
Scheduled for November 14 in Lagos, the Treasury360 Conference will bring together notable figures such as Central Bank of Nigeria Governor Yemi Cardoso, UK ACT Deputy Chief Executive Janet Legge, and Centre for Promotion of Private Enterprise Director Dr. Muda Yusuf to discuss sustainable financial strategies.
