To address the escalating inflation rate, Dr. Samuel Nzekwe, former President of the Association of National Accountants of Nigeria (ANAN), has advised the Federal Government to shift its focus towards fully diversifying Nigeria’s economy into agriculture.
In an interview with journalists in Ota, Ogun State, on Wednesday, he emphasized this recommendation against the backdrop of the recent increase in inflation figures from 22.79 percent in June to 24.08 percent in July, as reported by the National Bureau of Statistics (NBS).
Nzekwe highlighted the urgency of this advice, particularly as food inflation emerged as the highest among the inflation data provided by the NBS. He attributed this trend to apparent food shortages, resulting in elevated food prices.
The former ANAN president asserted that by prioritizing agriculture, the federal government could effectively lower the nation’s inflation rate, as agriculture significantly impacts other sectors of the economy. He emphasized the importance of addressing insecurity challenges to enable farmers to engage in productive farming activities, leveraging Nigeria’s comparative advantage in agriculture to enhance foreign earnings.
Furthermore, Nzekwe underscored the necessity of providing essential infrastructure such as electricity and a robust road network to support the productive sector, particularly the manufacturing industry. By ensuring the availability of critical infrastructure, manufacturers could produce goods at reduced costs, consequently lowering the country’s inflation rate.
He attributed the persistent rise in inflation to the removal of fuel subsidies, noting that the use of petrol by industries and individuals had ripple effects on the economy. Additionally, Nzekwe pointed out that imported goods, priced in dollars and converted to naira, contributed to higher prices and inflationary pressures.
Regarding the price of petrol, Nzekwe predicted a further increase due to Nigeria’s lack of control over the dollar exchange rate. He emphasized that these factors collectively contribute to the upward trajectory of inflation in the country.
