The Director of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf has stated that monetary policy tools like interest rate hiking have been ineffective in tackling inflation in Nigeria
Dr. Yusuf stated this during an interview with Arise TV on the outlook for the manufacturing sector in the country in 2024.
The CEO of the CPPE argued that if the increase in interest rates can curb inflation, then Nigeria shouldn’t be experiencing the high inflation it is witnessing now. He went further saying, that there is a need to address the primary drivers of inflation in the country and listed food, transportation, and others.
According to him,
He also alluded to the Ways and Means finances of the previous administration being a contributory factor to the current high inflation being witnessed in Nigeria.
Speaking further, Dr. Yusuf called on the federal government to ensure the facilitation of investment in industries that produce raw materials for manufacturers to reduce exposure to the volatility of the forex market.
He used the automobile industries as an illustration stating that the federal government can facilitate investment in the aluminium, iron, and steel sectors to ensure the inputs needed for that sector are locally sourced.
