An economist, Prof. Hassan Oaikhenan, has urged the Federal Government to revive the nation’s refineries and strengthen domestic production to ease the burden of rising living costs on Nigerians.
Oaikhenan, of the Department of Economics, University of Benin, gave the advice in an interview with the News Agency of Nigeria (NAN) in Lagos via telephone on Sunday.
He also called for measures to reduce the cost of governance.
According to him, these will help in ensuring that declining inflation translates into tangible relief for citizens.
The economist was reacting to the report of the National Bureau of Statistics that headline inflation declined from 15.43 per cent in July to 15.39 per cent in August and 14.63 per cent in September.
He said that although Nigeria’s headline inflation rate had declined, many citizens had yet to feel a corresponding improvement in their cost of living.
He said that decline in inflation did not necessarily mean that prices of goods and services were falling.
The economist said that it only indicated that the rate at which prices increased had slowed.
According to him, this distinction accounts for the apparent gap between official inflation figures and the daily experiences of Nigerians in the marketplace.
Oaikhenan attributed the persistent pressure on household budgets partly to stagnant nominal incomes and declining real incomes which, he said, had weakened the purchasing power of consumers.
He said that rising fuel prices had wider implications for the economy because of their effects on production, transport and distribution of goods, including agricultural produce.
These additional costs, he said, were often transferred to consumers through higher prices of food and other essential commodities.
He also urged the government to ensure that the nation’s refineries would become fully operational, saying that improved domestic refining capacity could help to address some challenges associated with fuel supply and costs.
Oaikhenan also called for measures to reduce the cost of governance and increase investment in productive sectors of the economy.
He stressed the need for the government to play a stronger developmental role by creating an environment that would stimulate production, support businesses and improve economic opportunities.
The economist said that such measures would help to ensure that the benefits of economic reforms would be reflected in the living conditions of citizens.
He said that while improvements in macroeconomic indicators were important, the ultimate goal of economic policy should be to deliver meaningful improvements in household welfare.
Oaikhenan added that reassessment of the country’s economic policies was necessary to ensure that reforms would produce sustainable growth and tangible benefits for Nigerians.
For a better society
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