An economic expert, Idakolo Gbolade has said the strain caused by the naira redesign crisis resulted in Nigeria’s inflation soaring to 21.82 per cent in January from 21.34 per cent the previous month.
On Wednesday, figures from the National Bureau of Statistics, NBS, showed that the Consumer Price Index, CPI increased by 0.47 per cent.
Since December, Nigerians have continued to battle the naira scarcity due to the Central Bank of Nigeria’s currency redesign policy.
NBS said food inflation, which accounts for the bulk of Nigeria’s inflation basket, rose to 24.32% in January from 23.75% in December.
Glolade, in his insight into the development on Thursday, disclosed that the increase is expected following the coming February 25th Presidential election.
“The strain in the economy has further caused an increase in inflation figures. The currency scarcity led to low production, substantial economic losses and a loss of confidence among investors.
“The increase is also expected because of the incoming elections. It has made national and sub-national governments focus on politics at the expense of the economy.
“The federal government needs to concentrate on delivering on critical strategic policies and put in place enough measures to stem the Naira scarcity, which has become a significant negative for this government and could sway voters’ opinion against the incumbent administration.
“The government should immediately direct the CBN to stimulate the economy with optimal cash to oil the economy and increase production.
“The CBN should also know that in carrying out its monetary policy objectives, it should properly assess the short and long-term impact on the economy to prevent a slide to economic recession”, he stated.
