A financial expert, Mr Moses Igbrude, has urged the Federal Government to entrench the naira for crude oil policy to ensure its affordability and also help to moderate the inflation rate.
Igbrude, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), made this interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos.
He noted that entrenching the naira for crude oil policy was key in increased domestic supplies and growth of the sector.
“This might allow for stiff competition in the industry and the prices of refined petroleum could begin to moderate over time.
“This will, in turn, have a spillover effect on the cost of goods and services, as well as spurring businesses in the country,” Igbrude said.
He stressed that the federal government could invest in infrastructural renewal to ameliorate the cost of production.
“The government giving priority to reliable and renewable energy as well as a functioning railway system will accelerate growth.
“This will support domestic production and check the rising inflation rate,” Igbrude said.
He stressed that the monetary authorities should sustain the foreign exchange reforms to ensure its stability in the economy.
“This will ameliorate speculators and engender investment confidence within the business communities,” Igbrude said.
Also, Mr Nnamdi Ifenkwe, Project Coordinator, Nisi Agro Allied Service, said that the government could address insecurity challenges fuelling food inflation.
“The government improving the security situation, especially in food hub states, will curb destructions in many farming settlements.
“This will ensure farmers return to various agrarian communities without being molested,” Ifenkwe said.
He noted that the exorbitant cost of transportation was partially responsible for the cost food producedede in the country.
“The cost of logistics from up north to down south has become too expensive, coupled with the various taxes on the road.
“This is being passed down to the final consumer through exorbitant food produce,” Ifenkwe said.
NAN recalls that the National Bureau of Statistics (NBS) said the nation’s headline inflation rate rose to 24.23 per cent in March.
The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for March.
According to the report, the headline inflation showed an increase of 1.05 per cent compared to the 23.18 per cent recorded in February. (NAN)
