A maritime expert, Dr. Oluwasegun Musa, has proposed a series of reforms, including agricultural transformation, monetary policy adjustments, and economic diversification, as crucial solutions to Nigeria’s ongoing inflation crisis.
Speaking at the 15th National Business Summit organized by People’s Forum Magazine, which focused on the theme “Insecurity and Economic Growth,” Musa emphasized the importance of a dedicated approach to the agricultural sector. He was represented by Mr. Mark Onuchi, Managing Director of Global Transport, who outlined the key points of Musa’s address.
Musa highlighted the necessity for the government to implement policies that incentivize farming, such as providing access to modern agricultural equipment, fertilizers, and improved irrigation systems. While acknowledging the strides made by the Central Bank of Nigeria’s Anchor Borrowers’ Program in supporting smallholder farmers, he stressed that further infrastructural support and expanded market access are essential.
He pointed out that Nigeria’s inflation is partly driven by structural issues, yet monetary policy also plays a critical role. Musa urged the Central Bank of Nigeria (CBN) to find a balance between controlling inflation through interest rate hikes and fostering economic growth. He noted that while raising interest rates can curb inflation by reducing demand, it can also hinder investment and raise borrowing costs for businesses, potentially leading to slower economic growth.
Musa further emphasized the need for the CBN to stabilize the foreign exchange market to prevent currency devaluation, which exacerbates inflation by increasing the cost of imports. He warned that Nigeria’s heavy reliance on oil exports leaves the country vulnerable to external shocks, particularly from fluctuating global oil prices. To sustainably reduce inflation, he called for a diversification of the economy by investing in non-oil sectors such as manufacturing, tourism, and technology.
He explained that promoting manufacturing industries would lessen Nigeria’s dependence on imported goods, thereby stabilizing the naira and alleviating inflationary pressures. A more diversified economy, he argued, would create jobs, reduce unemployment, and mitigate the economic hardships that contribute to insecurity.
Musa concluded that addressing the intertwined crises of insecurity and inflation in Nigeria requires a comprehensive strategy. He advocated for strengthening community policing, empowering the youth, leveraging technology in security operations, and reforming agricultural and economic policies as vital steps in breaking the cycle of insecurity and inflation. With coordinated efforts from government, the private sector, and civil society, he believes Nigeria can move toward stability, prosperity, and inclusive growth.