Inflation: Uwaleke Urges FG to Control Recurrent Spending

Ndubuisi Francis in Abuja 

A university don and former Commissioner for Finance in Imo State, Prof. Uche Uwaleke, has advised the federal government to control recurrent spending and focus on productivity, including ramping up assistance to small-scale businesses.

Uwaleke’s admonition was in reaction to Tuesday’s hike in the Monetary Policy Rate (MPR) by the Monetary Policy Committee of the Central Bank of Nigeria ((CBN), from 26.75 per to 27.25 per cent, representing a 50 basis points increase.

Uwaleke, who is the Director of the Institute of Capital Market Studies, Nasarawa State University as well as the President of the Association of Capital Market Academics of Nigeria (ACMAN), said he believed that members of MPC meant well for the economy and have taken the decision to further tighten monetary policy based on strong evidence of major threats to exchange rate and inflation.

However, he submitted that the task of taming inflation must be jointly tackled by both the monetary and fiscal authorities, adding that the government has to play its part by controlling recurrent spending and focusing on productivity, including ramping up assistance to small businesses.

He said: “My take on the recent hike in MPR is that in matters like this, the CBN usually has information that may not be at the disposal of the public.

“I want to believe the members of MPC mean well for the economy and have decided to further tighten monetary policy based on strong evidence of major threats to exchange rate and inflation.

“All said, the task of taming inflation must be jointly tackled by both the monetary and fiscal authorities. So, the government has to play its part by controlling recurrent spending and focusing on productivity including through ramping up assistance to small businesses.”