Addressing rising inflation in Nigeria: CPPE urges FG to prioritize power, forex, and transportation

The Centre for the Promotion of Private Enterprise (CPPE) has emphasized the need for the Nigerian federal government to address critical issues related to power, foreign exchange, and transportation in order to control the steadily increasing inflation over the past nine months.

Muda Yusuf, the Director of CPPE, expressed this concern in a statement released on Monday following the September inflation figure, which reached 26.72 percent.

Yusuf stressed that the rising inflation rate in Nigeria is alarming, especially given the simultaneous acceleration of poverty levels.

One of the primary concerns is the adverse impact on purchasing power, which has steadily eroded over recent months.

The CEO of CPPE attributed the surging inflation in Nigeria to various factors, including the depreciation of the exchange rate, rising transportation costs, logistical challenges, illiquidity in the forex market, a significant increase in diesel prices, and the impact of climate change.

According to Yusuf, the only effective way to curb inflation is by addressing the issues in the power, forex, and transportation sectors.

The economic think-tank group has called for the declaration of a state of emergency in the energy and power sectors, emphasizing that controlling inflation will be challenging without resolving these fundamental concerns.

Yusuf concluded by underlining the necessity of prioritizing these areas and implementing strategies that can drive rapid progress and reform.