For the country to containand reduce steady rise in inflationary rate, the Central Bank of Nigeria (CBN) must harmonise the foreign exchange rate for the various sectors, an economist has said.
Mr Nnemeka Obiaeri told newsmen in Lagos yesterday that harmonisation of the fiscal and monitory policies would curtail the rising inflation.
According to Obiaeri, the Chief Executive Officer, Tarux Capital and Advisory Services, Lagos, the different rates for granting foreign exchange to manufacturers, pilgrims, others cannot help the economy.
”The variations in the coordination of both the fiscal and monitory policies is militating against the control of inflationary rate and becoming a bane to the economy.
”It is wrong for the apex bank to have different rates for granting foreign exchange, since all of us are aware that it is responsible for the rising inflationary rate.
”It will be difficult to check inflation if the rates  for manufacturers are separate from that for pilgrims, which automatically gives room for round tripping without adding anything to the economy,” he said.
Obiaeri, who spoke against the backdrop of December 18.55 per cent inflation rate released by the National Bureau of Statistics (NBS), said allocations to agencies were low.
He said that the budgetary allocations to key government agencies that would improve the productive output in the economy were insignificant.
“Our budgetary allocation is quite low and cannot step up the productive output, which will gradually drive down the inflation rate and change the narratives.
”Funds voted to the power sector that will industrialise the country is not up to 500 billion for a population that is about 180 million people.
”The government would encounter difficulties with such insufficient funds,” he said.
He urged the management team to be more ingenious to deal with issues fueling the inflationary rates.
”They should source for home solutions and reduce the various rates so as to sustain investors’ interest in the economy.
”If more investors trust the economy, they will bring more foreign exchange and the issues that fuel inflation will gradually come down to one digit,” he said.
Nigeria’s consumer prices increased by 18.55 per cent year-on-year in December 2016, following 18.48 per cent rise in the previous month.
The inflation rate accelerated for the 11th straight month to the highest since October 2005, as prices continued to rise for housing, electricity and food.
Inflation rate averaged 12.29 per cent from 1996 until 2016, reaching an all time high of 47.56 per cent in January of 1996 and a record low of -2.49 per cent in January of 2000.