As the country awaits the National Bureau of Statistics (NBS) September’s inflation report, a Financial Inclusion/Wealth Management expert, MD/CEO SD & D Capital Management Limited, Mr Idakolo Gbolade has disclosed that Central Bank of Nigeria(CBN) measures to tame surging inflation is not yielding result.
Gbolade made this disclosure in a chat with DAILY POST on Thursday.
He explained that the country’s apex bank has utilized available means within its disposal to curtail the continuous inflation rise but there is no immediate result.
Nigeria’s inflation rate surged to 20.52% in August, rose from 19.64% recorded in July, according to details of the inflation figures published by the National Bureau of Statistics (NBS).
The figure has continued to generate concerns from stakeholders because the Nation’s poverty index is on a steady rise.
The Implication is that Nigerians purchasing power continue to wane as food prices witness sharp rise. The value of Nigeria’s currency, Naira, has also dropped.
“The measures adopted by the CBN to tame inflation so far have not yielded the desired result. In the last MPR meeting the CBN increased the MPR rate for the third consecutive time by 100 basis points to 14% from 13%. The major reason was to reign in on inflation but that had failed with the current inflation figure”, Idakolo said.
“The CBN has used all the tools in its disposal to stem inflation to no avail and this can be attributed to other macroeconomic factors that are affecting inflation which has not allowed inflation to abate.
“The implications on the economy are enormous as we see rising food inflation which has led to sharp rise in the cost of food items.
“The cost of doing business in Nigeria has also risen which will affect the manufacturing sector coupled with increased interest rate on lending by commercial banks. The poverty level is sure to rise bringing more people into the poverty bracket.
“The value of our Naira to other major currencies has also weakened which will lead to continuous devaluation of the Naira and less value in the hands of Nigerians”, he stated.
Meanwhile in his forecast of the forthcoming inflation figures, Gbolade said, “In my opinion, I do not see the inflation receding putting into consideration that 2023 is an election year and much might not be done by the outgoing government as regards the economy”.
NBS is expected to publish September’s inflation figures in two days’ time.
CBN measures to tame inflation not yielding results – Expert
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