Eddie Osarenkhoe, a financial expert, has advised the federal government to develop a deliberate fiscal policy to stem inflation.
Mr Osarenkhoe, ex-president of the Finance Houses Association of Nigeria (FHAN), gave the advice on Monday in Ota, Ogun.
He was reacting to a statement by the National Bureau of Statistics (NBS) that the nation’s inflation rate increased from 29.90 per cent in January to 31.70 per cent in February.
He said the advice became necessary to enable the federal government to temporarily suspend the rising cost of food and inflation in the country.
The financial expert stressed the need for the federal government to examine what was driving the inflationary trend and devise a policy to control the situation.
“There is the need for a clear-cut fiscal policy by the federal government to help fight inflation. However, the federal government needs to combine its fiscal policy with the monetary policy of the apex bank to stem inflation,” the expert said.
Mr Osarenkhoe said that with the forces of demand and supply determining the market forces, prices of things would continue to go up. He suggested that the federal government should implement some control measures, such as food incentives, as seen in developed countries.
According to him, no country can just leave everything to market forces because even in America, they still subsidise food.
He said that if the government left everything to the forces of demand and supply, inflation would continue to rise.
The financial expert appealed to the federal government to find a way of subsidising food by granting incentives to people, as food was everyone’s need.
Mr Osarenkhoe said that sharing money with people would not help control the inflationary trend fueled by the forces of demand and supply.
He urged the federal government to redouble its efforts by implementing effective monetary policies and granting people incentives for food and other essential things.
(NAN)
