The Nigeria Employers Consultative Association (NECA) issues a warning that inflation could reach 25% by the end of 2023 if not controlled.
NECA expresses concern over the recent decision by the Monetary Policy Committee to raise the Monetary Policy Rate to 18.75%, deeming it ineffective in managing inflation.
The association emphasizes the potential negative impact of tightening the monetary policy stance on the nation’s growth trajectory.
Opinion: The rising inflation rate in Nigeria is a significant concern, and NECA’s warning highlights the urgency of addressing this issue. The decision to increase the Monetary Policy Rate could have adverse effects on the country’s economic growth, particularly if inflation continues to surge. Policymakers must consider alternative strategies to manage inflation effectively and promote sustainable economic development.