By Akinnodi Francis, Ondo

Nigerian economists and financial analysts have emphasised the need for the federal government to reassess its policies in key sectors such as manufacturing, agriculture, and energy to address the nation’s surging inflation.

The experts made this observation in separate interviews with The Hope, highlighting the urgent need for effective policy interventions as inflation continues to rise.

This comes as Nigeria’s headline inflation and food inflation climbed to 34.60 percent and 39.93 percent, respectively, in November 2024.

According to Prof. Timothy Awe of Ekiti State University, Ado-Ekiti, the country’s escalating inflation signals a dire economic environment for Nigerians.

“The development is worrisome as high inflation erodes purchasing power and makes it difficult for households to meet basic needs.

“The latest inflation figures, particularly the rise to 34.60 percent and food inflation hitting 39.93 percent, reflect a challenging economic environment for Nigerians. High inflation erodes purchasing power, making it increasingly difficult for households to meet basic needs.”

He added that the current economic challenges demand immediate and targeted actions to stabilise prices and ease the strain on citizens.

“This situation underscores the urgent need for effective economic policies and interventions that can stabilise prices and alleviate the burden on citizens.

“Regarding the Central Bank of Nigeria’s Monetary Policy Committee, CBN MPC, if they are perceived to be engaged in an ‘aimless chase’ in addressing inflation, it suggests a disconnect between their policies and the realities on the ground.

“It may indicate a need for a reassessment of their strategies, including possibly reevaluating interest rates or implementing measures that directly target inflationary pressures, especially in critical sectors like food and energy,” he noted.

In his own assessment, economist Sanya Ogunsakin described November’s inflation figures as a reflection of the broader economic challenges facing Nigeria.

He pointed out that the government’s interventions have yet to yield significant improvements in sectors vital to economic stability.

“The inflationary trend is a reflection of the situation of the economy despite the very good efforts of the Central Bank of Nigeria and the Federal Government. The manufacturing sector, which is one of the engine rooms of economic activities, is struggling, and other government policies have not found their footing.

“The agricultural sector still has various challenges that have given rise to increased food inflation. There is still insecurity in agrarian communities, high transportation and logistics costs, and the decreasing strength of the Naira. The continuous hike in the interest rate has not stemmed inflation. Instead, it has increased the cost of doing business in Nigeria drastically.

“The federal government needs to come to terms with the realities on the ground and ensure stability in the economy by looking into critical sectors of the economy to overhaul it for better efficiency,” he concluded.