. LAUDS NIGERIAN MONETARY POLICY
The International Monetary Fund, IMF through its Director of Communications, Julie Kazak has advised the federal government on the importance of reducing the high prices of food, drugs and transportation. The world body said this could be done through the implementation of social protection measures. This is contained on its website.
According to Kozak, the full implementation of the social safety net programme will alleviate the hardships faced by Nigerians occasioned by the fuel subsidy removal policy by President Bola Tinubu’s administration, stressing that the food security of every nation is a priority.
IMF said, We do recognise the difficult situation that many Nigerians face. Our advice is first and foremost to help ease this suffering related to higher food, drug, and transportation prices by strengthening social protection. “With food price inflation reaching 35 per cent year over year in January, addressing food insecurity is the immediate priority.
The recently approved targeted social safety net programme will provide cash transfers to vulnerable households and this is also a very important step to easing the suffering. It will need to be fully implemented before the government can address costly implicit fuel and electricity subsidies in a manner that will ensure that low-income households are protected.
The IMF commended the Nigerian Monetary Policy Committee, for its increase in the lending rate by 400 basis points, which the monetary body said was a positive step towards curbing inflation and relieving pressure on the naira. Recall that the Central Bank of Nigeria CBN, in February 2024, raised the Monetary Policy Rate (MPR) by 400 basis points to 22.7 per cent from 18.75 per cent which it was since the last meeting in 2023.
Kozak said: And the decision last week by the Monetary Policy Committee to further tighten monetary policy should also help contain inflation and contain pressures on the naira. Nigerias inflation rate climbed to 29.90 per cent in January 2024, from 28.92 per cent recorded in December 2023. This surge highlighted inflationary pressures.
