By Simon Akoje
Lagos, Jan. 19, 2021 An Economist, Mr Moses Igbrude, has urged the Federal Government to subsidise more agricultural inputs to boost food output and curb rise in inflation rate.
Igbrude, who is the Chief Executive Officer of Ogu investment, told the News Agency of Nigeria (NAN) in Lagos on Tuesday that subsidising the cost of fertilisers and crops seedlings would ensure a better harvest.
He added that the Federal Government should encourage more states to embrace mechanised agriculture.
“If more states begin to adopt more modern agricultural approach they will grow based on their food comparative advantages.
“This is as mechanised agricultural practice is the panacea to meet our food security and curb importation,” he said.
According to him, the Federal Government should continue to support the real sector of the economy in order to boost productivity and drive down inflation.
He also suggested that monitory authorities shoul have a single exchange rate for the economy.
“ The current multiple exchange rate is fuelling inflation spikes because of our import driven nature.
“ The rate gives room for speculators to thrive and it is quite inimical to investors to have confidence in the economy,” he said.
Naija247news reports that the Consumer Price Index (CPI) , which measures inflation , increased by 15.75 per cent (year-on-year) in December 2020.
In its monthly report released on Friday, the National Bureau of Statistics (NBS), said that the increase was 0.86 per cent points higher than the rate recorded in November 2020 at 14.89 per cent.
The urban inflation also increased in December 2020 by 16.33 per cent (year-on-year) in December 2020 from 15.47 per cent recorded in November 2020,while the rural inflation rate increased by 15.20 per cent in December 2020.