NECA urges govt action for economic recovery amidst inflation concerns
In a bid to bolster Nigeria’s economic recovery and combat inflationary pressures, the Nigeria Employers’ Consultative Association (NECA) has called upon the Federal Government to implement comprehensive measures addressing supply-side constraints and promoting stability across key sectors.
NECA emphasizes the importance of adopting a multifaceted approach, combining prudent monetary and fiscal policies to stimulate investment, enhance productivity, and alleviate inflationary pressures. According to Mr. Adewale Smart Oyerinde, the Director-General of NECA, while recent tightening measures by the Central Bank of Nigeria (CBN) have led to the appreciation of the naira, sustained efforts are needed to address underlying challenges and foster economic resilience.
Acknowledging the recent deceleration in inflation figures, Oyerinde highlights persistent factors contributing to price hikes, including supply chain disruptions, logistical inefficiencies, and escalating production costs. These challenges, he notes, continue to fuel inflationary expectations across various sectors of the economy.
However, Oyerinde remains optimistic, suggesting that the commencement of operations at the Dangote Refinery could alleviate some of these pressures by reducing transportation costs and production expenses. He stresses the importance of creating an enabling business environment, promoting innovation, and fostering healthy competition to mitigate long-term inflationary risks.
In light of these considerations, NECA advocates for concerted government intervention at all levels to address the root causes of disruptions in food supply chains, support local firms to enhance domestic production capacity, and synchronize monetary and fiscal policies effectively to curb inflationary trends.
As Nigeria navigates the complexities of economic recovery and inflation management, NECA’s call for proactive measures underscores the urgency of collaborative efforts between the public and private sectors to safeguard the nation’s economic stability and promote sustainable growth.
