The Nigeria Employers’ Consultative Association (NECA) yesterday in Lagos stated the nation’s increasing rate of inflation over the past months might continue for a long time.
NECA’s Director-General (DG), Dr Timothy Olawale, in an interview with the News Agency of Nigeria (NAN), stated the rate might additionally distort the administration of the economic system as costs of food products have been over 57 per cent of average spending.
I reported that the latest figures printed by the National Bureau of Statistics (NBS) confirmed that Nigeria’s inflation rate climbed to a 33-month excessive as it rose additionally to 16. 47 per cent in January, this year, from 15. 75 per cent in December.
“The combination of the rising inflation rate at 17.3 per cent in February 2021 and unemployment rate now at high- the level of 33.3 per cent in Q4, 2020, anticipated to bring the distress index to an extra file high of about 75 per cent.
“It’s noticeable that food prices jumped greater than 20 per cent, heaping monetary stress on households already confronted with a shrinking labour market and stagnant economic system at a time of mounting insecurity,” he stated.
The DG noted that with the present situation, there was apprehension that the nation is likely to be confronted with food problems, occasioned by the insecurity facing virtually every region of the nation.
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Based on him, insecurity, if not checked, will invariably affect the administration of the economic system, bringing about social unrest.
He stated there was the need to tackle some basic factors escalating insecurity, whereas addressing food security.
“In our projection, the inflation figure will proceed to rise until a drastic measure in tackling the insecurity situation is addressed.
“To curtail food inflation, enough help is required within the agriculture sector, to enhance productivity in all the value chain and reduce the cost of food supplies.
“Businesses in the agriculture and manufacturing sectors of the economic system continue to decry assess various intervention programmes of over N1 trillion over a year.
“We call on the financial authority to make access to the intervention amenities open and accessible to every business, to reduce the economic hardship,” Olawale stated.