The Institute of Chartered Secretaries and Administrators of Nigeria, ICSAN, has advised the Federal Government, FG, and the Central Bank of Nigeria (CBN) to find other means of reining in inflation beyond raising the Monetary Policy Rate, MPR.
Speaking at a media interactive session in Lagos, the President/Chairman of Council, ICSAN, Mrs. Funmi Ekundayo, 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.
Her words: “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.
“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.”
Ekundayo highlighted 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) as factors that have led to increased costs of governance in the country noting that these are some areas the government should look into to reduce the cost of governance.