An economist, Prof. Akpan Ekpo, has queried World Bank’s prediction that Nigeria’s inflation rate is expected to rise to fifth highest in Sub-Saharan Africa by the end of 2021.
Ekpo, a professor of Economics and Public Policy at the University of Uyo, Akwa Ibom, questioned the prediction in an interview with the News Agency of Nigeria on Thursday in Lagos.
Recall the bank’s Lead Economist for Nigeria, Macro Hernandez while presenting its six-monthly update on development in Nigeria on Tuesday, said Nigeria was lagging the rest of sub-Saharan Africa, with food inflation.
Hernandez included heightened insecurity and stalled reforms as slowing growth and increasing poverty.
The professor said: “First of all, we need to examine the methodology the World Bank used to arrive at the conclusion because we know that inflation has declined slightly.”
Ekpo, also Chairman, Foundation for Economic Research and Training in Lagos, said, however, that if government could solve the insecurity problems limiting economic growth and increase Agricultural production, the prediction might not hold.
According to him, there are countries with double digits inflation and still doing well.
“This means you can have inflation and yet your GDP is growing, so, it’s when you have what we call run-away or hyper inflation that is when you get worried.
“Run-away inflation means that prices are increasing everyday or every month without control,” he said.
On predictions that the inflation would push seven million more Nigerians into poverty due to falling purchasing power, Ekpo gave a suggestion to the federal government to stem it.
He urged the Federal Government to seriously implement the National Poverty Reduction with Growth Strategy Programme and the Economic Sustainability Plan documents.
“I cannot fault them on this one because already, the National Bureau of Statistics (NBS) said about 85 million Nigerians are living in poverty.
“So, World Bank just saying that confirms what our own NBS has already said.
“Now, if the government implements the National Poverty Reduction initiative document as well as the Economic Sustainability plan seriously, then we can begin to reduce the poverty rate.
“Then the economy must grow double digits, that is, 10 per cent and above for us to see reduction in poverty and more jobs creation as well, because poverty is linked to unemployment,” he added.