By Oluyemi Israel
Dr. Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise, said the government should lower import costs across all sectors instead of relying only on interest-rate changes to fight inflation.
He said the interview took place on Monday in Lagos, just before the Central Bank of Nigeria’s 301st Monetary Policy Committee meeting, scheduled for Tuesday and Wednesday in Abuja.
Dr. Yusuf said that even though headline inflation has fallen, prices for core items and food continue to rise. He added that high energy bills, costly transport, expensive loans and import charges all push up the cost of making and selling goods.
He said the government could use trade rules to make imported inputs cheaper in manufacturing, agriculture and services. He also called for better security in farming areas to protect food supplies and for steps to manage cross-border trade and its effect on the exchange rate.
Dr. Yusuf noted that the West African CFA franc has gained strength against the naira for over two years. He said this has encouraged more Nigerian food exports, which in turn raises local food prices and adds to inflation.