'Nigeria economy have to wait for next election to know how tins go be'
Wia dis foto come from, Getty Images
Di rising inflation for Nigeria and di economic situation wey di kontri dey face go get any short term solution yet until afta di 2023 general election, na so one former deputy govnor of di Central Bank of Nigeria tok.
Di kontri National Bureau of Statistics (NBS) release im Consumer Price Index (CPI) report for October 2022 on Tuesday, say inflation don rise to to 21.09% for October and food inflation dey for 23.72% for di month of October from 23.34% for September.
Reacting to dis new informate on inflation, former CBN deputy govnor, Kingsely Moghalu, tell BBC Pidgin say dis report no be surprise at all sake of wetin dey cause di inflation.
Wia dis foto come from, Kingsley Mpghalu/Twitter
Cost push inflation
Oga Moghalu say Nigeria inflation na cost push and not demand push inflation.
Cost push inflation according to am, na rising cost of running economy sake of di kain structure factors wey dey drive up di price.
Some of di economic structural palava wey make Nigeria dey get dis kain very high inflation na sake of forex wahala, high cost of electricity, security palava and too much goment interference for di economy.
Nigeria goment dey over chook mouth for di economy by trying to control di foreign exchange, im tok.
Di kotri get many different rates ofr changing dollar to Nigeria and dis dey pursue investors wey wan come invest, e add.
End of Di one wey oda users dey read well well
Di cost of importing goods to enta di kontri dey go high sake of foreign exchange wahala.
Pipo wey dey import market dey get dia foreign exchange through the black market and wen dem buy goods dem must add reflect di price and add dia own profit.
We also get high food prices and e get many tins wey dey case di price of food to go high.
Oga Moghalu say tins wey dey make food cost include “conflict for various parts of Nigeria especially for di food basket areas for di north east and di middle belt, weda na Boko Haram, wed ana bandits wey dey chase pipo away from dia farms, dey deny pipo farmlands, or wed ana di herdsmen wey dey attack pipo for di middle belt dey try take over di farmland of farming communities. So, or wed ana di war for Ukraine.”
Implication of di rising inflation
Wia dis foto come from, Getty Images
Di implication of di kain inflation be say e go throw more and more Nigerians into poverty.
“Wetin inflation dey do be say e dey reduce di reduce di power of wetin naira wey dey your pocket fit buy. So if you bin dey buy two tubers of yam for like N2 and now di naira few weeks later cost much more to di dollar, den you dey buy very less wit di same amount, Moghalu tok.
Anoda implication na unemployment. Unemployment dey grow for dis kain situation wen companies, especially small ones no fit to afford di price of materials, businesses go begin sake dia workers, e add.
Wetin CBN fit do?
Di former CBN deputy govnor say, “e no easy for di Central Bank to manage inflation successfully sake of structural reasons.”
Di first reason be say CBN don borrow goment excess money sotey, and dis get implication of causing inflation, e say.
Di second one na di forex situation wey no get any hope of changing anytime soon, even wit di redesigning of di naira note.
Moghalu say im doubt say di redesigning of di naira note go do anytin to reduce inflation for short term sake of say di palava wey dey cause Nigeria inflation na structural like cost of food price sake of insecurity and war for Ukraine plus forex palava, CBN no get any control over dis mata.
So wetin go happun?
Oga Moghalu say wetin Nigeria need to do to really begin bring down inflation pressure for dis kontri dey di hand of di di economic management of Nigeria.
Di economic management come from di political side and if di new goment wey go come afta di 2023 election “signal to di market say dem go allow di market to function properly and not interfere so much,” tins go really begin come die.
Right now Nigeria get different exchange rates for different transactions and dis dey cause lack of confidence for di economy.
Di market no get “transparency” and dis dey make investors no get confidence im tok.
“Unless and until dis happun, I no see any real solution for di economic situation wey wey get,” e add.
