Experts urge FG to invest in productive sectors to curb inflation

Some economic experts have advised the federal government to invest more in the productive sectors of the economy, reduce importation, and improve the people’s purchasing power.
In separate interviews on Friday in Lagos, they said such measures would help boost domestic production and further reduce the country’s inflation rate.
McAnthony Dike, a former president of the Chartered Institute of Taxation of Nigeria, said investment in productive sectors was key to checking inflation.
“The government should initiate favourable macroeconomic policies that encourage the growth of domestic production firms,” said Mr Dike. “This will promote import substitution and support economic growth and development.”
Mr Dike also urged the government to review electricity tariffs, saying high energy costs are discouraging production in industrial areas.
He added that insecurity had continued to threaten agricultural output.
“This insecurity has caused food shortages and a lack of raw materials for production,” Mr Dike said.
Similarly, Femi Oke, South-West chairman of the All Farmers Association of Nigeria, called for more credit facilities for smallholder farmers.
“Government support for farmers through single-digit interest loans and long-term repayment periods will help them improve their harvests.
“With such support, Nigeria can achieve food sufficiency and reduce food-induced inflation,” he said.
Mr Oke also advised the government to educate farmers on the importance of soil testing before cultivation to improve yield.
He added that more efforts were needed to prevent post-harvest losses.
“Private investment in storage facilities should be encouraged to reduce food wastage and improve management of produce across all seasons,” he said.
Sunny Nwosu, founder of the Independent Shareholders Association of Nigeria, noted that despite the decline in inflation, Nigerians’ purchasing power remained weak.
“The money people earn can no longer buy much because of the currency devaluation.
“Also, many young people are unemployed and have no income,” Mr Nwosu said.
He urged the government to introduce innovative policies, including partial transportation subsidies, to reduce the cost of goods and services.
Mr Nwosu also called for more investments to tackle insecurity affecting agricultural activities.
According to the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate eased to 18.02 per cent in September, from 20.12 per cent in August.
The NBS said this marked the sixth consecutive month of decline in the inflation rate and that the September 2025 figure was 14.68 per cent lower than the September 2024 figure.
(NAN)
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