Inflation: PDP lawmaker asks Tinubu for urgent policy review

Ned Nwoko (PDP-Delta) has called for an urgent policy review, given the surge in the inflation rate.

Mr Nwoko made the call in an interview in Abuja on Friday.

He said the recent surge in inflation rates and the significant depreciation of the naira were issues of grave concern for every citizen and stakeholder investing in the nation’s prosperity.

According to him, the inflation rate, which has reached alarming levels in recent months, is a threat to the well-being of the people.

“We must take decisive action to address this concerning trend that has unfortunately become the norm. The nation’s economic team must urgently review and adopt effective policies to combat these challenges,” he said.

Mr Nwoko said the CBN governor, at a briefing at the National Assembly, cited Nigerians’ schooling abroad as contributors to the high inflation rate and depreciation of the naira, among other factors.

“The assertion may have some merits, but the impact of tuition expenses on the country’s foreign exchange reserves pales in comparison to the broader systemic issues at play,” the legislator stressed.

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The lawmaker said blaming Nigerians schooling abroad for inflation, and currency depreciation oversimplifies the complex factors driving economic trends.

“It’s important to acknowledge the broader systemic issues such as fiscal policy, monetary management, trade imbalances, and structural deficiencies within the economy that contribute significantly to these challenges,” he said.

Mr Nwoko said that inflation was primarily controlled in the UK through the monetary policy implemented by the Bank of England.

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He said one adverse structural deficiency influencing economic trends in Nigeria was the excessive importation of non-essential goods and locally produced items.

He explained that dependency on imported goods, particularly those that can be readily produced within the country, undermines domestic industries and erodes the foundations of economic self-sufficiency.

He added that this dependence would continuously subject the nation’s economy to external shocks, exacerbating the Naira depreciation if no resolute action was taken.

The lawmaker also said that another structural deficiency exacerbating the depreciation of the naira was the practice of paying foreign workers in companies situated in Nigeria in foreign currency.

He explained that this practice not only undermines the dignity and rights of Nigerian workers but also puts pressure on the nation’s foreign exchange reserves, thereby destabilising the naira.