The Central Bank of Nigeria (CBN) has been told to tame inflation as the economy cannot afford persistent double-digit interest rates.
“The Nigerian economy cannot afford the current persistently high double-digit general inflation of 25% with food inflation at a staggering 29%, macroeconomic instability, low investment drive, sluggish economic growth, escalating poverty 64% and fragility that have compounded unemployment at 37%” Pol Eco Analytics, said in a statement.
The statement signed by Adefolarin A. Olamilekan, the Snr Researcher at Pol Eco Analytics said “Domestic policies in the form of quality monetary policy from the CBN can play a major role in improving Nigeria’s economic performance, bring significant growth and buffers against any external shocks.”
The firm also called on CBN’s support to the real sector to grow forex. There should be well-structured strategic support to the real sector and sub-sector through compact measures to protect the manufacturing sector, MSMEs and cottage industries, in order to maximize the collective impact on growth, job creation, and poverty reduction in the nation, it said.
The firm said the new CBN Governor must recognized the “need to chart a new course and endeavor to link these critical reforms with improving fiscal and trade policies of the federal government, that would strategically lead to export-oriented economy.”
It also noted that Dr Michael Olayemi Cardoso can seize the opportunity to implement quality monetary policy to grow the Nigerian economy. By initiating critical monetary reforms to address macro and microeconomic imbalances, foreign reserve challenges, robust FX management, and guarded interventions in the real sector and sub-sectors of the nation’s economy.