November 08, 2021 / 10:00 AM / by Ottoabasi Abasiekong for WebTV / Header
Image Credit: WebTV
Weakening consumer confidence in Nigeria has been attributed to the inability of fiscal and monetary policy authorities to align policies. Mr. Lampe Omoyele, the Managing Director, Nitro 121, made this point while discussing Consumer Confidence in Nigeria in 2021.
He noted that despite several interventions to stabilize the economy, the impact on the consumers has been minimal because the monetary policy space has dominated it.
Omoyele believed it was time for the government to look at fiscal expansion to align with monetary interventions. He stated that consumers in Nigeria were currently experiencing a challenging phase of their livelihood because of a general decline in disposable income.
"There is an erosion of consumer confidence in the country, due to high inflation and devaluation of the currency. This has led to a decline in consumer demand in the country". He added.
Assessing the socio-economic situation in the country, he noted that consumer confidence has declined because of the pressures on their income and their ability to spend money on essential commodities.
He also stated that since the COVID 19 pandemic, consumers have also expressed concerns over health and safety in the country. These challenges, coupled with the economic issues, have piled pressure on them.
On the critical decisions around petroleum subsidy removal and market-based electricity tariffs, he called on the government to address the trust deficit with the citizens.
He said the reason citizens and other groups have resisted the policies mentioned earlier is the lack of transparency and accountability in the management of the process.
The MD, Nitro 121, stated that "The success of policy decisions like petroleum subsidy removal and adoption of a market-based electricity tariff regime hinges on transparency, sincerity of purpose and clarity on the benefit to consumers."
With less than a month to the December Christmas season, he advised consumers to buy essential items like food to avoid soaring prices that characterize the last month of the year.