CPPE Urges Nigerian Government to Address Inflation with Fiscal Tools
The Centre for the Promotion of Private Enterprise (CPPE) emphasized the need for the Nigerian government to utilize all fiscal tools to address inflation.
Muda Yusuf, the Director of CPPE, made this assertion on Wednesday in response to Nigeria’s latest headline inflation figure.
Additionally, CPPE recommended that the Central Bank of Nigeria should intensify its efforts to tighten monetary policy by considering interest rate hikes, which were at 22.75 percent in March.
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“Persistent inflationary pressures in the Nigerian economy remain a major cause for concern because they impact purchasing power and operating costs for businesses.
“Although the key inflation drivers are yet to significantly moderate.
“Meanwhile, we urge the Monetary Policy Committee to soften its monetary tightening stance for the time being. Businesses are yet to recover from the shocks of the recent bullish rate hikes. Monetary instruments should be put on pause while fiscal policy tools address supply-side factors in the inflation dynamics,” it stated.
Nigerians’ economic hardship worsened as food inflation rose to 40.53 per cent in April.
