Abuja: Nigeria needs sustainable strategies by the government and relevant stakeholders to proffer workable solutions to the rising cost of living. Dr. Alim Abubakre, Senior Lecturer at Sheffield Business School, London, made this known to the News Agency of Nigeria (NAN) on Monday in Abuja.
According to News Agency of Nigeria, Abubakre emphasized that the high cost of living is a global challenge, not limited to Nigeria. He cited examples of countries like the UK experiencing sharp inflationary spikes, Sri Lanka grappling with severe food shortages, and Argentina enduring hyperinflation. Abubakre noted that as Nigeria embarks on economic reforms, including the reduction of subsidy payments and the flotation of the Naira, it is imperative to mitigate these challenges through innovative strategies across the short, medium, and long term.
Abubakre proposed short-term strategies such as capacity building for leaders to navigate complex economic landscapes and innovative approaches to tackling inflation, unempl
oyment, and poverty. He commended the government’s efforts in providing palliatives for quick relief from challenges encountered due to new policies and programs, highlighting direct cash transfers as an effective measure to support the poorest households and prevent them from falling deeper into poverty.
He also suggested temporary tax reductions and the reduction of import duties on staple foods and essential products to lower retail prices and alleviate consumer burdens. Additionally, providing subsidies for public transportation could ease commuting costs, given the significant portion of household expenses attributed to transport. Abubakre advocated for the continued funding and implementation of converting public transport to Compressed Natural Gas (CNG) and making conversion kits more affordable by collaborating directly with manufacturers or encouraging local production.
Further recommendations included placing price caps on essential medicines and healthcare services to ensure affordability, inspir
ed by South Africa’s Single Exit Price policy. Expansion of the school feeding program and establishing community kitchens were also suggested to support the most affected populations, with corporate involvement via Corporate Social Responsibility mandates.
For medium-term solutions, Abubakre recommended boosting local production, encouraging small and medium enterprises, investing in public transport infrastructure, supporting renewable energy adoption, and providing affordable housing through public-private sector collaboration. In the long term, he stressed the importance of economic diversification, investment in education and skill development, promoting industrialization, and advancing agricultural technology.