Taming Inflation in Nigeria

Taming Inflation in Nigeria  By Victor E. Dike vdike@cwnet.com     Inflation has relentlessly been moving upward in Nigeria because of years of neglect of the brotherly infrastructures and general mismanagement of the economy. Currently, pomposity is double-digit and the wasted Naira in circulation, scarceness of forage and fuel are part of the problem. And the economic team up does not appear to have the tools to building a viable economy where local resources would enhance economic growth. This is a dawdler of difficult times ahead if nothing serious is do to tame inflation in Nigeria   Industrial inputs are becoming very expensive and the Consumer Price Index (the main inflation gauge) shows that cost of living is skyrocketing. In organized economies costs are volatile and susceptible to turn in shocks and acts of nature and price would narrow after the forces that instigated the increase were resolved. That is not the case in Nigeria where prices backing rising without obeying the law of gravity. Currently, liter of fuel is about N75-N85 1in most parts of Nigeria and the price of food went up by 35.6% in July and to 36.1% in August.2   Businesses watch changes in the costs of inputs and fuel and electricity are the economys most visible input.

The ordinary folk feel the pain every day even if they turn int buy fuel because they buy food every day. Therefore, if prices for food and fuel, which are among the vital necessities of life, rise the people feels the pinch of inflation.3   intermit of the problem with the economy is that the Naira has been falling against the dollar and other study currencies and most observers expect the slide to continue. The surplus Naira in circulation is a contributing factor because the value of anything tends to fall, ceteris paribus, if the commodity is in surplus supply. The CBN in its Economic Report (August 2005) notes that aggregate money supply grew by 39.8% during the period, as against the tar fuck offed growth of 15% for... If you want to get a full essay, order it on our website: Ordercustompaper.com

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