Experts outline steps to tame Nigeria’s inflation

Financial experts have outlined practical strategies to tackle Nigeria’s persistent inflation, which slightly declined to 23.71 per cent in April, according to official statistics.

The experts, Johnson Chukwu and Akin Alabi, spoke in separate interviews on Sunday in Lagos with the News Agency of Nigeria (NAN).

Chukwu, Chief Executive Officer of Cowery Asset Management, said fiscal discipline across all government levels was critical to reducing the country’s headline inflation.

He explained that unchecked budget deficits contributed significantly to inflationary pressures, which are worsened by excessive government borrowing and poor financial prudence.

He emphasised that prudent management of public funds would reduce the need for deficit financing and stabilise the overall economy.

“This will allow for reduced borrowing to fund budget gaps, which is one of the major drivers of current inflation,” he said.

He also linked increased money supply, partly driven by the naira’s devaluation, to rising inflation and called for better monetary coordination.

Chukwu advised the government to ramp up crude oil production to boost foreign exchange earnings and enhance economic stability.

“Security improvements in abandoned oil wells would allow International Oil Companies to resume operations in previously inaccessible areas,” he stated.

He argued that increased oil output would strengthen foreign reserves and reduce exchange rate volatility, helping to control inflationary trends.

On his part, Alabi, who is the CEO of Corporate Farmers International, focused on food inflation, which remains stubbornly high.

He said the rising cost of transporting agricultural produce is a major cause of sustained food price increases across Nigeria.

“Until there are viable alternatives to road transport, food prices may remain high,” Alabi warned, citing fuel subsidy removal impacts.

According to him, the elimination of petrol subsidies has led to a fourfold increase in fuel prices, driving up haulage costs.

This, he noted, has severely disrupted supply chains, especially for farmers and traders operating across long distances in rural areas.

Alabi also called on the government to prioritise security in food-producing regions affected by recent conflicts and violence.

“Many farmers can’t return to their settlements due to insecurity, which has worsened food scarcity,” he lamented.

He urged the government to support large-scale agriculture through subsidies and incentives for private sector participants.

“Like the U.S., Nigeria should subsidise agriculture to boost output and ensure long-term food security,” he suggested.

According to the National Bureau of Statistics, food inflation dropped to 21.36 per cent in April, down from 40.53 per cent in April 2024.

The April figure also marks a slight fall in headline inflation from 24.23 per cent in March, signalling tentative improvement.

The NBS attributed the drop to slower price increases in some food items and essential services during the period.

In spite of the dip, experts warn that inflation remains high, urging coordinated policy action to maintain downward momentum.

They emphasise the need for structural reforms, improved security, and targeted support for key sectors like agriculture and oil.

As Nigerians continue to face rising living costs, stakeholders believe only bold, consistent action can restore price stability.