Nigeria Needs the Right Mix of Monetary and Fiscal Policy to Grow Consumer Demand
This edition of "Economy and Politics" features Mr. Lampe Omoyele, MD, Nitro 121, as he speaks on "Assessing 2021 Consumer Confidence Levels in Nigeria".
According to him, the weak consumer confidence level in Nigeria could be attributed to the inability of fiscal and monetary authorities to align their policies. He noted that despite several interventions to stabilize the economy, the impact on improved consumer spending has been minimal because monetary policy has not translated to higher consumer income.
Omoyele believed it was time for the government to look at economic expansion from the fiscal side to trigger larger expansion in domestic incomes and economic activity.
He added that "There has been an erosion of consumer confidence resulting from high inflation and the devaluation of the local currency, the Naira. Both double-digit inflation and falling exchange rate have led to a decline in effective consumer demand".