Look beyond rates hike to control inflation, ICSAN tells CBN, govt

The Federal Government and the Central Bank of Nigeria (CBN) have been counseled to find other means of controlling inflation in the country other than raising the Monetary Policy Rate (MPR).

The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) gave the counsel at a media interactive session addressed by its President/Chairman of Council, Mrs. Funmi Ekundayo.

ICSAN Noted that CBN has increased MPR about four times by a total of about 225 basis points this year with little or no impact on inflation.

She said: “I think this year alone CBN has increased MPR about four times by a total of about 225 basis points. That is huge. But what do we see? Has it had any impact on inflation? I will say no.

“So I think that it is very important for CBN to look beyond this orthodox method because it doesn’t look like it is working for us. I believe that the government should look beyond the management of interest rates to curb inflation.

“There are so many areas the government can look into to make the economy more efficient.

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“There is a need to increase real investment in infrastructure for instance. And I think for CBN as well, economic policies should be made taking cognizance of our own peculiarities and what would work for us.

“The government should also try to reduce leakages in the system because at the end of the day, when you look at the cost of governance all of these have a direct impact on growth and the ability of the government to invest.”

According to Ekundayo, massive salaries and allowances of public office holders, maintenance of a large number of aids, and duplication of functions in Ministries, Departments and Agencies (MDAs) are factors that have led to increased cost of governance in the country, noting that these are some areas the government should look into to reduce cost of governance.

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