Eddie Osarenkhoe, a seasoned financial expert and former President of the Finance Houses Association of Nigeria (FHAN), has called upon the Federal Government to implement deliberate fiscal policies to counter the surge in inflation. This call comes in response to recent data from the National Bureau of Statistics (NBS) indicating a rise in Nigeria’s inflation rate from 29.90 per cent in January to 31.70 per cent in February.
Speaking with the News Agency of Nigeria (NAN) in Ota, Ogun State, Osarenkhoe stressed the urgency for the government to address the escalating costs of food and overall inflation through targeted fiscal measures. He emphasized the importance of understanding the underlying factors driving inflation and formulating effective policies to manage the situation.
“There is an urgent need for a well-defined fiscal policy by the Federal Government to combat inflation,” Osarenkhoe asserted. He underlined the necessity of aligning fiscal policies with the monetary policies of the central bank to mitigate inflationary pressures effectively.
Highlighting the continuous upward trend in prices due to the interplay of demand and supply forces in the market, Osarenkhoe recommended the adoption of control measures, such as food incentives observed in developed nations, to alleviate inflationary pressures.
“The government must implement measures to subsidize food, as witnessed in developed countries,” Osarenkhoe stated. He cautioned against relying solely on market forces, suggesting that unchecked inflation would persist if left unaddressed.
Osarenkhoe appealed to the government to consider subsidizing food through incentives, recognizing food as a basic necessity for all citizens. He argued against the effectiveness of distributing cash to combat inflation, advocating instead for policies that address the root causes of inflation.
In conclusion, Osarenkhoe urged the Federal Government to intensify efforts in implementing effective monetary policies and providing incentives, particularly in the food and essential goods sectors, to mitigate the impact of inflation on the economy.
The call from Osarenkhoe underscores the pressing need for proactive measures to safeguard Nigeria’s economy against the adverse effects of inflation, highlighting the importance of targeted fiscal policies in achieving stability and economic growth.
Credit: News Agency of Nigeria(NAN)
