Former President, Association of National Accountants of Nigeria (ANAN), Dr. Samuel Nzekwe, has advised the Federal Government to simulate the productive sector of the economy to stem the nation’s rising inflation rate.
Nzekwe gave the advice in an interview with the News Agency of Nigeria (NAN) in Ota, Ogun State, on Tuesday.
Recall that the National Bureau of Statistics (NBS) on Monday in Abuja, said that the nation’s inflation rate increased from 11.37 per cent in April to 11.39 per cent in May.
The former ANAN boss noted that the only way to achieve a reduction in rising inflation is for the Federal Government to stimulate the real sector by providing enabling environment for the sector to thrive.
“The nature of the inflation facing the country is that of having too much money purchasing few goods and services.
“The Federal Government can address this challenge by creating the enabling environment for the productive sector to thrive so that more goods and services could be provided seamlessly,’’ Nzekwe said.
He said that this would lead to creation of job opportunities for the youth and would ultimately contribute to the nation’s Gross Domestic Product (GDP).
According to him, there is the need to harmonise both monetary and fiscal policies to be able to reduce the nation’s inflation rate drastically to a single digit.
Nzekwe explained that the Federal Government could also encourage increase in local production and Foreign Direct Investments through intervention in critical infrastructure and adequate provision of security in the country.
The Accountant noted that the absence of stable power supply would bring about a high cost of production “not competitive anywhere in the world’’.
He urged the Federal Government to reduce interest rate and Cash Reserve Ratio in the banks so that loanable funds could be available for investors to produce goods and services that would boost the economy.