With inflation levels fluctuating and poverty on the rise in the country, students of various tertiary institutions have suggested solutions to the problem. Nonetheless, they urge the Federal Government to seek foreign aid, encourage production, boost agriculture, empower small scale and medium enterprises, among others, report HANNAH AJAO(UNILORIN), FEMI ESAN (FUOYE), ZAINAB AHMAD (BUK), ABDULWAHEED SOFIULLAHI (UDUS) and GLORY THOMAS (OGITECH).
Economically, the country is struggling. Thus, experts have said inflation was deepening poverty and crippling the economy.The World Bank also said additional seven million people have been pushed below the poverty line.
Last month, the National Bureau of Statistics (NBS), in a report said: “Nigeria’s annual inflation rate eased for the second straight month to 17.93 per cent in May of 2021 from 18.12 per cent in April, amid a slight slowdown in prices of food & non-alcoholic beverages & tobacco (22.28 per cent vs 22.72 per cent in April) and despite a recent currency devaluation.
‘’Still, the annual core inflation, which excludes the prices of volatile agricultural produce hit 13.15 per cent in May, the highest since April of 2017. On a monthly basis, consumer prices inched up 1.01 per cent following a 0.97 per cent increase in the prior month.”
Director-General, the Lagos Chamber of Commerce and Industry (LCCI) Dr Muda Yusuf said: “From month-on-month perspective, inflation accelerated across all parameters and this underscores the fact that inflation remains a major challenge to investors and citizens.
“Inflation is, perhaps, the biggest poverty accelerator because of the weakening of purchasing power.
“It weakens real income, erodes purchasing power, puts pressure on operating costs, aggravates production costs, reduces sales and negatively impacts profit margins across sectors.”
Nevertheless, students across the country have not only expressed their dissatisfaction over inflation levels and poverty, but also have also come up with probable solutions to stem the tide.
Emmanuel Kpono-Abasi Oladokun, a 300-Level Economics student of University of Ilorin, wants the government to use the contractionary monetary policy, whereby there is a reduction in the amount of money that goes round in an economy by increasing interest rate and reducing bond prices.
“One of the major drivers of inflation in Nigeria is food. It’s the major item in the Consumer Price Index’s (CPI) basket index. If the prices are higher, then inflation occurs.
“Factors like insecurity in the North, flooding could make food prices go higher which will in turn drive inflation. If those things can be taken care of, there would be enough supply of food from wherever the food is produced in Nigeria, and this will let supply meet demand,” he said.
Irewolede Ibukun Oluwayomi, a 400-Level student of the Department of Economics, Federal University, Oye-Ekiti, said: “Inflation has affected the entire economy and has also spiked the level of unemployment, thereby pushing Nigerians into poverty. When the price of energy, food, commodities and other goods and services rise, the entire economy is affected. Rising prices also known as inflation, impacts the cost of living, the cost of doing businesses, borrowing money, mortgages, corporate, and government bond yields, and every other facet of the economy.
“However, the solution to inflation in the country, among others, are: ensuring price stability, facilitating local production, seeking foreign aid and attracting foreign investors, and embracing diversification.”
He noted that some policies needed to be made to reduce poverty, which include increased funding on education and training to enable high skilled work force, increased employment rate and youth empowerment.
Another student, Uzaigbe Moses Anthony of the Department of Business Administration, UNILORIN, said: “Empowering Small Scale and Medium Enterprises (SMEs) is vital because 40 per cent of the economy is constituted to them in advanced countries.
“Then, the government should focus on improving local industries, this would reduce demand for foreign goods and our currency might gain strength against foreign currencies.
“Investment in agriculture is also another way to go. It was the major source of our income before the discovery of oil in the 1970s. After that, we left agriculture and faced oil alone and then became a net importer of food instead of exporting. There was a problem in the oil market; the prices of oil crashed. It affected our national income and budget,” he said.
Suraj Ahmad, an Economics student of Bayero University Kano(BUK), noted that stimulating investment and production of goods in the country was crucial to addressing challenges posed by inflation and poverty.
Adewale Ayuba Adekunle, a 200-Level student of Education Economics at Usmanu Danfodiyo University (UDUS), wants the government to create more job opportunities to decrease the rate of poverty.
‘’Money and financial assets lose value as a result of inflation. Money’s worth is determined by what it can be used to purchase. Money’s purchasing power decreases when prices rise. The worth of your bank account diminishes as well, because increasing prices require more money to buy the same amount of products and services.
‘’Obviously, the inflation is affecting the masses. Sadly, our money has no value and our market prices are increasing. The poorest masses, who earn N10,000 monthly, for example, cannot afford to buy enough foodstuff because of inflation. Hence, this is really increasing poverty levels in the country,” he said.
Adejumo Olalekan, a 400-Level student of the Department of Mass Communication, FUOYE, said: “Inflation is a twin affair; at the surface of inflation, the economy is affected. The government and the governed have to work concomitantly to fight the battle. The government should be relentless in diversification of the economy and create an enabling environment to drive it well. On the other hand, the governed should be instrumental to the realisation of diversification.”
Mustapha Ismail Owolabi, a student of Civil Engineering at Moshood Abiola Polytechnic(MAPOLY), Abeokuta,Ogun State, said: “Price of commodities should be uniform irrespective of their various producers. With strict rules from the government, whoever goes beyond the fixed prices should be subjected to stiff penalties. Recycling can also boost economic growth and reduce inflation due to the bypass of stages of production of new products.
“Then sufficiently investing in agriculture reduces poverty. Easy access to good food at a very low cost can only be achieved if attention is paid to the agricultural sector. Inflation would also decrease across the nation due to competition among all.
“Though we still need crude oil to survive, it should be refined in the country and made cheaper.”
Bello Mojeed Ayinla, a 200-Level Marketing student of UNILORIN, said: “A country where there’s no government regulation on the market price of commodities will, definitely, have inflation. Everyone is pricing their products the way they want. The small scale retail traders can’t keep up with the hike in price of the commodities and consumers too are feeling the heat.
“One of the solutions to inflation is that ogovernment should encourage infant industries. Also, progressive taxing system (the higher you earn, the higher you pay) should be introduced because a lot of companies have shut down in the last few years.
The government should also encourages agriculture, empower youths, and also channel its energy to the education sector.”
For Oloyede Omoshalewa, a Business Administration student of MAPOLY, the government should reduce the money supply within the economy.
Lawal Abdulazeez, a 300-Level Management student of UDUS, said the government should create more jobs to boost the economy and improve the standard of living of citizens.
‘’In the country, many people cannot feed their families. In March, food prices inflation of food prices reached 22.95 per cent.It affected grains, yam, meat, fish, and fruits. Conflict between farmers and herders is also to blame for that.
“Things would improve if government can create employment opportunities to enhance the economy and improve the standard of living of people,” he said.
A 200-Level Economics student of Obafemi Awolowo University (OAU), Ile-Ife, who pleaded anonymity, said: “Privatisation, which involves selling state-owned assets to the private sector is vital. It is argued that the private sector is more efficient in running businesses because they have a profit motive to reduce costs and develop better services. Then, allowing new firms to enter the market would make it more competitive. Free trade agreement would also help to enhance more investment to boost the economy.
“Also, entrepreneurship should be encouraged. It would aid export and citizens would begin to patronise made-in- Nigeria products. With that, the country will be on a sure footing to economic recovery.”
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