An economist, Dr Aminu Usman, has advised the Federal Government to make workable policies to address food and energy challenges as well as cushion other effects of inflation in the country.
Usman, a lecturer in the Department of Economics, Kaduna State University, gave the advice in an interview with newsmen in Abuja on Wednesday.
He said the country had not experienced inflation like this in the last 20 years.
The Consumer Price Index (CPI), a measure of inflation, stood at 18.72 per cent (year-on-year) in January from 18.55 per cent in December 2016, according to the National Bureau of Statistics (NBS).
The CPI, which measures average changes in prices of goods and services, was 0.17 per cent higher than the figure in December.
Usman said that food prices were still high for the common man.
“Once food items are still very expensive and energy that is also used in industries and manufacturing sector is also very expensive, there is no way inflation will come down.
“If the government does not address food and energy challenges, there can hardly be meaningful development in the country this year although there is a projection by IMF and World Bank that there is possibility of moving out of recession.’’
Usman said that the only sure way for the country to come out of recession was to sustain the peace in the Niger Delta.
“The only guarantee we have that we can move out of recession is if the relative peace in the Niger Delta to be sustained which means that the exploration and export of crude oil will increase.
“If the stability in the crude price we have seen in the first or two months is sustained, then the country will move out of recession, but the problem with this country is that some policies precede certain policies.
“If the government wants to stop the importation of food items, it will have made sure that the food is available first.
“Once the food expenditure for the family remains very high, the inflation will also be very high,’’ Usman said.
The don said that addressing the energy challenge was also key to curbing other economic challenges.
“In the same way, If energy is not addressed, aviation fuel is now N280 per litre and that is how we have been buying diesel.
“Imagine a company that will buy diesel at N280, how much are they going to sell their products?
“When you see some improvement in electricity in about one or two weeks, it will go bad for another four to five weeks,’’ he said.
Usman, however, advised government to come up with policies that would bring the country out of economic recession.