Some financial experts have urged the federal government to establish more farm settlements to achieve self-sufficiency in food production and moderate food prices.

They made this call in separate interviews with journalists on Sunday in Lagos.

Tunde Adeoye of the economics department, University of Lagos, said the government could consider creating farm settlements in regions where Nigeria has a comparative advantage in agricultural production.

He added that such efforts would help tame the rising inflation and solve structural issues within the economy.

“These settlements, equipped with key infrastructure, could accommodate young farmers for months until harvest. This would boost food production and help reduce food-induced inflation,” Mr Adeoye said.

He also stressed the need for innovative solutions to resolve the herder-farmer conflict and improve the business environment to encourage more local modular petroleum refineries.

Mr Adeoye further urged the government to support the Nigerian National Petroleum Company Ltd. (NNPCL) in moderating commodity prices to help curb inflation.

Another financial expert, Ayo Teriba, advised the government to adopt macroeconomic policies to attract more Foreign Direct Investment (FDI).

He added that such policies should also boost external reserves and stabilise the foreign exchange market, thereby reducing inflation.

Mr Teriba said that improved external reserves would lower interest rates, making borrowing more affordable.

He mentioned that the current administration inherited $33 billion in external reserves in 2023.

Meanwhile, Chris Nemedia, a former director of the research department at the Central Bank of Nigeria (CBN), suggested reinstating some form of petroleum subsidy to help moderate inflation.

“Every government subsidises something for its citizens, whether it’s agriculture in the U.S. or healthcare in the U.K. Nigeria should do the same for refined petroleum, given its wide impact on the economy,” Mr Nemedia said.

He also cautioned against fully implementing recommendations from Bretton Woods institutions, noting that they might not serve the country’s best interests.

Nigeria’s headline inflation rate for September rose to 32.70 per cent, a marginal increase from the 32.15 per cent recorded in August, reflecting ongoing price pressures.

Year-on-year, inflation surged by 5.98 per cent compared to 26.72 per cent in September 2023.

(NAN)