NECA Wants Monitoring of Inflation Dynamics
The Nigeria Employers’ Consultative Association (NECA) has called for a close monitoring of inflation dynamics, to promote economic resilience and inclusive growth.
In a statement on Tuesday, its Director-General, Mr Adewale-Smatt Oyerinde, also sought assessment of the impact of currency movement and advocated evidence-based policies.
His statement came on the backdrop of the Consumer Price Index released by the National Bureau of Statistics (NBS) for March 2024 that reveals another increase in the inflation rate.
According to NBS, the inflation rate surged to 33.01 per cent, an increase from 31.7 per cent recorded in February, indicating a 1.31 percentage point increase over the period.
Oyerinde said: “While the tightening measures of the Central Bank of Nigeria have led to the recent appreciation of the Naira, there is noticeable a decelerating increase in the recent inflation figure.
“With time and the introduction of supplementary measures from the fiscal authority addressing supply chain fundamentals, the inflation figure would begin to decline.” Naira Skids as FX Turnover, External Reserve Decline
The director-general said that in spite of currency appreciation typically dampening inflation by reducing import costs, other factors were exerting stronger upward pressure on prices.
He said that supply chain disruptions, logistical challenges and rising production costs continued to drive up prices across various sectors, amplifying inflationary expectations.
“However, there is hope that once the Dangote refinery commences production and distribution of petroleum products, transportation costs and other production expenses will significantly reduce, “ he said.
Oyerinde urged policymakers to adopt a holistic approach to address inflationary pressures and promote economic stability.
According to him, this includes implementing prudent monetary and fiscal policies to address supply-side constraints. “Also, to enhance productivity and stimulate investment in critical sectors such as agriculture and infrastructure.
“There is need for government intervention at all levels to address factors disrupting food supply, support domestic firms to boost local production, and synergise monetary and fiscal policies effectively to combat inflation,“ Oyerinde said.
