By Francis Akinnodi
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The Centre for the Promotion of Private Enterprise has urged the Federal Government to deploy measures such as the introduction of tax incentives for low-income employees and small businesses and the reduction in import duty on certain products to mitigate the effect of the current reforms on Nigerians.
According to the economic and private sector think tank, the administration of Bola Tinubu needs to promptly deploy these measures to address the social outcomes of its recent reforms, especially the inflationary pressure induced by the fuel subsidy removal.
It stated that urgent measures need to be put in place to mitigate the soaring cost of living and the escalating operating and production costs, especially for businesses.
The Director/Chief Executive Officer, Muda Yusuf, stated this in the centre’s half-year economic review monitored by The Hope.
He said, “The Tinubu administration needs to promptly deploy measures to mitigate the current headwinds inflicted by the current reforms”.
He noted that inflationary pressures may intensify in the near term, with the country’s exchange rate coming under pressure in the short term as forex demand backlog exerts pressure on the official forex window.
He stated that this pressure is expected to ease before the end of the year and would pave the way for an equilibrium exchange rate that would be more tolerable and sustainable.
He explained that the Central Bank of Nigeria should establish a sustainable intervention framework to moderate the volatility in the forex market.
