The International Monetary Fund (IMF) has issued a stern call to the Federal Government of Nigeria, urging immediate action to address the soaring prices of essential commodities amidst escalating inflation.
Julie Kozak, the IMF’s Director of Communications, emphasized the critical need for the government to focus on reducing the high costs of food, drugs, and transportation through the implementation of robust social protection measures.
In a press briefing transcript posted on the IMF’s website, Kozak underscored the urgency of alleviating the hardships faced by Nigerians, particularly in light of the fuel subsidy removal policy.
She highlighted the importance of fully implementing social safety net programs to mitigate the impact of rising prices, especially on vulnerable households.
Addressing the staggering food price inflation rate, which reached 35% year over year in January, Kozak emphasized the immediate priority of addressing food insecurity.
The recently approved targeted social safety net program, designed to provide cash transfers to vulnerable households, was lauded as a crucial step towards easing the suffering of the populace.
Moreover, the IMF commended recent monetary policy actions taken by the Monetary Policy Committee to tighten policy, viewing it as a positive step towards curbing inflationary pressures and stabilizing the naira.
The IMF’s call to action comes at a critical juncture as Nigeria grapples with a ballooning inflation rate, which surged to 29.90% in January 2024.
With inflation exacerbating the cost of living and straining household budgets, concerted efforts from the government are imperative to mitigate the adverse effects on citizens and foster economic stability.
