Inflation

Inflation is projected to stay elevated in the coming years due to the failure of both current and past administrations to tackle its root causes effectively. My administration will promptly launch a series of high-priority strategic actions aimed at addressing the problem of high inflation:

Implement Monetary Policy Shift: The Central Bank of Nigeria (CBN) will employ a rigorous quantitative tightening approach to decrease the volume of money circulating in the economy. In addition to other policy instruments, the CBN would have to raise interest rates to curb inflation. Higher interest rates will reduce consumer spending and business investment, slowing down the economy and reducing inflationary pressures. However, this will be balanced against the risk of slowing economic growth too much.

Regulate Monetary Overflow: My team will be committed to ending the government’s habit of borrowing from the CBN, a practice that stokes inflationary pressures. The Central Bank will not be used as a convenient financial reservoir to print more money.

Unify exchange rate systems: Under my administration Nigeria will operate one exchange rate market. We will kill the parallel market. We will freely float and rescue it from the CBN intervention.

Reduce counterfeit currency: My administration is committed to the stringent reduction of the circulation of counterfeit currencies, both domestic and international, that are currently estimated to be in substantial quantities outside the formal banking channels.

Ensure Fuel Affordability: By setting an inflation-adjusted standard pricing for fuel, its affordability for the average Nigerian will be ensured.

Implement Fiscal Responsibility and Government Spending Control: Under my administration, the government will achieve balanced budget and fiscal discipline by reducing unnecessary expenditures and focusing on essential services and infrastructure. This will help lower the budget deficit and reduce the pressure on domestic prices. Additionally, better management of public funds, including reducing corruption, will lead to more efficient government spending. My first tasks will be reversing unsustainable spending policies that have depleted government coffers and caused inflation to skyrocket.

Provide Supply Chain and Agricultural Support: Since we heavily rely on agriculture, supporting this sector is my top priority to help stabilize food prices, a significant component of inflation. This includes investing in agricultural technology, providing farmers with better access to financing, and improving supply chain infrastructure to reduce food spoilage and transportation costs.

Diversify the Economy: As clearly stated in my economic strategic imperative, diversification away from oil dependency will help stabilize the economy against external shocks. At the top of my policy agenda is investing in other sectors such as technology, agriculture, manufacturing, and services to create more stable revenue streams and job opportunities, reducing the country’s vulnerability to global oil price fluctuations.