The Centre for the Promotion of Private Enterprise (CPPE) has called on the Nigerian government to activate fiscal tools to combat inflation, amidst rising concerns over the country’s latest headline inflation figures.
Muda Yusuf, the Director of CPPE, made this statement on Wednesday in response to Nigeria’s inflation rate, which surged to 33.69 per cent in April 2024.
Highlighting the severity of the situation, CPPE emphasized the need for decisive action, particularly from the Central Bank of Nigeria (CBN), to address the inflationary pressures. Yusuf urged the CBN to intensify its monetary policy measures, including interest rate hikes, which stood at 22.75 per cent in March.
“Persistent inflationary pressures in the Nigerian economy remain a major cause for concern because they impact purchasing power and operating costs for businesses,” stated CPPE.
While acknowledging that the key drivers of inflation have not significantly moderated, CPPE advised the Monetary Policy Committee (MPC) to temporarily ease its monetary tightening stance. The organization highlighted the adverse effects of recent rate hikes on businesses, emphasizing the need for a pause in monetary instruments while fiscal policy tools address supply-side factors influencing inflation dynamics.
The economic challenges facing Nigerians have further intensified, with food inflation soaring to 40.53 per cent in April, exacerbating the already dire economic hardship experienced by many.
