Economists have emphasised the need for fiscal discipline and import substitution to address Nigeria’s surging inflation, which climbed to 34.6% in November, according to the National Bureau of Statistics (NBS).
Professor Bright Eregha of Pan-Atlantic University highlighted that increased allocations from the Federal Accounts Allocation Committee have expanded the money supply. He warned that unless these funds are directed toward productive sectors, they could worsen inflation. Eregha advocated for investments in mechanised agriculture to enhance food production and tackle food insecurity.
Similarly, Professor Tunde Adeoye of the University of Lagos urged the government to adopt policies encouraging local production of imported goods. He stated, “This will strengthen local capacity and reduce foreign exchange pressure.”
Adeoye also noted that inflation in Nigeria is a structural issue, exacerbated by economic dislocations and reforms. He suggested resolving security challenges, such as herder-farmer disputes, to boost food production.
The NBS data showed a month-on-month inflation rise of 2.638% in November, with food prices driving the increase. Economists believe targeted investments and structural reforms are crucial to stabilising the economy.
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