A chieftain of the ruling All Progressives Congress (APC), Ambassador Abayomi Nurain Mumuni, has advised the federal government under the leadership of President Bola Tinubu to make policies to ensure price control on essential goods and services across the country.
Mumuni noted that this is necessary to curb incessant increment of prices of goods and services in the country.
The APC chieftain in a statement signed by his Media Aide, Rasheed Abubakar, a copy of which was made available to journalists on Thursday said that the federal government must put some certain things in place to prevent further inflation in the country.
Mumuni, while speaking further, urged the federal government to encourage the local production of goods that are typically imported, adding that this will help mitigate inflation.
He also tasked the federal government to provide support for sectors like agriculture, manufacturing, and technology.
Mumuni also suggested some strategies that the government can adopt to address the inflation and stabilize the economy.
“The Central Bank of Nigeria (CBN) could consider adjusting interest rates to control the money supply. Increasing interest rates can help curb inflation by making borrowing more expensive and encouraging savings.
“The CBN can conduct open market operations to buy or sell government bonds, thereby influencing liquidity and interest rates in the economy. The government can invest in and incentivise local industries to increase domestic production, which can reduce reliance on imports and help stabilize prices. This may involve providing subsidies, tax breaks, or access to financing for local businesses.
“Investing in infrastructure, such as transportation and power supply, can lower production and distribution costs for businesses, helping to bring prices down. Encouraging the production of goods that are typically imported can help mitigate inflation. This could include providing support for sectors like agriculture, manufacturing, and technology.
“Enhancing agricultural productivity through research, subsidies for farmers, and improved access to markets can help stabilize food prices, which are a major component of inflation. In some cases, the government may consider temporary price controls on essential goods to prevent excessive price hikes. However, this should be done cautiously to avoid market distortions and shortages.
“Implementing a regulatory framework to monitor and regulate the prices of essential goods and services to protect consumers from sudden price spikes. Intervening in the foreign exchange market to stabilize the naira by leveraging foreign reserves can help manage inflation expectations and reduce volatility.
“Establishing trade agreements that facilitate easier access to goods can help mitigate the impact of currency fluctuations on prices. The government should focus on controlling public expenditure and ensuring that spending is targeted at productivity-enhancing projects rather than populist spending that could ignite inflation.
“Adjusting tax policies to ensure that essential goods remain affordable can help mitigate the impact of inflation on low-income households. Providing clear and transparent communication about economic policies and inflation management efforts can help manage public expectations and confidence. Promoting financial education can help consumers make informed decisions and adapt to changing economic conditions.
“Collaborating with businesses to understand their challenges and ensuring that they have the support needed to maintain stable prices. Engaging with organizations like the International Monetary Fund (IMF) or World Bank for technical assistance and guidance on best practices in monetary and fiscal policies.
“A comprehensive approach combining monetary policy adjustments, supply-side interventions, strategic price controls, and prudent fiscal policies is essential for the Nigerian government to effectively mitigate,” he said.
