Present rate of inflation not healthy for the economy- MAN DG

The Manufacturers Association of Nigeria (MAN) has dropped the hint that  reduced inflation rate of April is still not healthy  to kickstart the economy.
The statement was made by MAN DG, Mr Segun Ajayi-Kadir, in an interview with NAN in Lagos.
In the interview he said “Efforts also need to be doubled to initiate policy measures that will address rising incidence of insecurity required for seamless farming, food production and ensure monetary flows are directed toward productive activities.
“Unfortunately, the Nigerian economy is still struggling to recover fully from the repeated bout with recession and can therefore not afford high inflation rate, which is not a recovery recipe.
“In addition, the manufacturing sector is still battling for survival as its growth rate is still neck-deep in the negative region with a growth rate of -1.51% in the Q4 2020 from -1.52 % in Q3 of the same year.
“The current inflationary condition in Nigeria adversely affects the profitability of manufacturing and is partly responsible for its poor competitiveness in the sector.
“Of course, inflation rate of 18.12% is still not healthy for the well-being of the people and the growth aspiration of the economy and should therefore be properly managed before it spirals out of control,” Ajayi-Kadir said.
He called on the FG through the CBN and Finance Ministry to initiate more policies that affect the real sector to prevent a clash in policy implementation.
“For instance, while CBN was creating funding windows at single digit interest rate to encourage production, government increased VAT from 5 per cent to 7.5 per cent. Similarly, government increased minimum wage and also allowed increase in electricity tariff and so on.
“Government, in partnership with the manufacturers, should select strategic products, particularly those with high inter-industry linkage, for backward integration support and upscale the drive for the resource-based industrialisation agenda,” he said.

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