The Nigeria Employers’ Consultation Association of Nigeria (NECA) has called on policymakers to adopt a holistic approach to address inflationary pressures and promote economic stability.
The employers’ body said the approach should include implementing prudent monetary and fiscal policies to address supply-side constraints, enhance productivity and stimulate investment in critical sectors such as agriculture and infrastructure.
Director-General, NECA, Adewale-Smatt Oyerinde said this, following the March inflation report released by the National Bureau of Statistics (NBS), which surged to 33.01 per cent, marking a notable uptick from 31.7 per cent recorded in February.
He said the 1.31 percentage point increase over the period, reflected the growing inflationary pressures in the economy, calling on the need for more supplementary measures.
He said fostering a conducive business environment, encouraging innovation and promoting competition could help mitigate inflationary pressures in the long term.
While he emphasised the importance of monitoring inflation dynamics closely, Oyerinde said assessing the impact of currency movements and advocating for evidence-based policies to promote economic resilience and inclusive growth.
He urged 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.
The NECA boss noted that 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.
Oyerinde believes that with time and the introduction of supplementary measures from the fiscal authority, addressing supply chain fundamentals, the inflation figure would begin to decline.
“Supply chain disruptions, logistical challenges, and rising production costs continue 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.
