Prof. Evans Osabuohien of Covenant University, Ota, has advised Nigeria to massively invest in the productive sector to surmount the continuous rising inflation rate.
Osabuohien, a Professor of Economics, gave the advice on the sideline of 2020 National Budget Roundable And Panel Discussion organised by the institution.
The National Bureau of Statistics (NBS) had consistently reported increase in inflation rate since January.
“ There is the need for the Federal Government to inject more funds into the productive sector so that they could produce at an optimal level.
“This development will increased the supply of good and services which would drastically bring down the cost- pull inflation that the country was currently experiencing,” he said.
He noted that the nation had cost-pull inflation because there are so many money purchasing few goods and services in the country.
Osabuohien called on the Federal Government to create enabling environment by providing critical infrastructures that would make the productive sector to thrive.
He listed some of these critical infrastructures needed for the productive sector to be effective to include stable electricity, adequate security, good road network among others.
The don noted that where there is an adequate security, there would be no threat to investment.
He urged the Apex bank to use the N1 trillion injected into the economy due to the COVID-19 outbreak to finance the productive sector.
Osabuohien also advised the Federal Government to take diversification of the economy seriously so as to address the problem of dwindling oil price in the international market.