An economy oriented group has urged the incoming government of President-elect, Bola Ahmed Tinubu, to address foreign reserves inadequacies as the solution to rising inflation.
In April, the National Bureau of Statistics announced in its latest Consumer Price Index that the country’s inflation rate is 22.22 per cent.
The Chief Executive Director of the Economic Associates, Dr Ayo Teriba, made the opinion of the group known in an exclusive interview with Daily Post.
In reacting to the steady increase of inflation over the eight years tenure of the President, Major General Muhammadu Buhari (retd.), Teriba said the incoming administration could end the jinx with the right monetary policies.
Teriba said the best solution for the country’s economy is to boost foreign reserves.
He noted, however, that Nigeria’s inflation is not isolated from global cost/supply and energy shocks.
He stated, “It would be essential to prioritize rather than come out with an endless list of problems to solve.
“The important problem is foreign exchange reserves inadequacies. If you don’t deal with it, you cannot address any other problem.
“The solution is whatever the incoming government can do in the office to get the liquidity to raise the reserve adequacy to a minimum level that would give the government control over foreign exchange rates and policies. Poverty, inflation, and others are symptoms of the problem of foreign reserves.”
When Buhari assumed office in 2015, Nigeria’s inflation stood at 9.01 per cent, but as he prepares to exit power on May 29 2023, the country’s inflation has increased to 22.22 per cent.
Nigeria’s foreign reserves is $36,624 million according to the Central Bank of Nigeria.