The Managing Director/Chief Economist at Analysts Data Service and Resources Limited, Dr Afolabi Olowookere, has said that the Federal Government needs to revive and concentrate on production, review its trade- industrial policy and borrow innovatively for Nigeria to bring down rising inflation,
Olowookere stated this while speaking during a one-day forum organised by the Capital Market Correspondents Association of Nigeria (CAMCAN), said that government should avoid falling into debt trap and it’s consequences but to ensure a coordinated monetary and fiscal policies.
He spoke on the theme: “2022 Performance Review and Factors to Shape Post- Elections Market.” said government should make fiscal spending more efficient to effectively address rising inflation.
While reviewing economic activities in 2022, Olowookere said that the Russia-Ukraine war, widening disparity in the foreign exchange market coupled with unsustainable debts and financing led to the soaring inflation.
Although the National Bureau of Statistics (NBS), had, on Monday, reported that inflation had eased to 21.34 per cent in December from an all-time high of 21.47 per cent in November, 2022, Olowookere believes that the Federal Government especially the incoming administration should seek ways to revive production, the country’s trade-industrial policy and must borrow innovatively.
“Inflation has been on the rise and in response, the Monetary Policy Committee (MPC) raised the Monetary Policy Rate (MPR) four times in 2022.
“Rising debt stock has been a major concern for the government and citizens alike.