The federal government has been encouraged by the Centre for the Promotion of Private Enterprise (CPPE) to provide concessionary import duties to food processors and industrialists in order to combat Nigeria’s soaring inflation.
According to CPPE’s CEO, Dr Muda Yusuf, in a statement, Nigeria’s high inflation rate is a major macroeconomic concern to many stakeholders in the nation’s economy.
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He explained that this are largely supply side and policy concerns, adding that monetary policy tackling in most economies around the
world especially the leading economies is also driving imported inflation and the depreciation of the exchange rate.
Mr Yusuf added that other causes of mountain inflation includes the escalation of production costs which negatively affects profitability, erosion of shareholders value in many businesses, whitening of investors confidence and declining manufacturer’s capacity utilisation.
The country’s inflation hiked to 21.09 per cent in October from 20.77 per cent in the prior month.
“The government could tweak the tariff policies by granting concessionary import duty on intermediate products for industrialists, especially those in the food processing segments of the agriculture value chain,” he said. “This would provide producers and citizens with some relief.”
