High cost of living refers to a situation where the prices of goods and services are increasing rapidly without corresponding increase in people’s income therefore making it difficult for people to afford basic necessities like food, housing, transportation and healthcare.
High cost of living can be caused by inflation (increase in prices of goods and services rise);
Increase in rent and housing costs
Increase in food prices
Economic instability
The situation is dire with many Nigeria forced to make difficult choices between basic necessities like food, medicines and healthcare.
The Government has implemented reforms but their short term impact has been devastating pushing million into poverty.
Therefore the need for government to put some short terms and long-term measures as a way of addressing this economic hard ships.
Some of the suggestions includes
Short term measures
Price control
Regulate prices of essential goods like foods, energy and medicine to prevent price gifting
Subsides
Provide subsides on essential goods and services, food, transportation and energy
Cash transfer
Implement targeted cash transfer program to support vulnerable populations
Import restrictions
Reduce or eliminate tarrifs on essential goods to increase supply
Long-term measures
Invest in Agriculture
Boost food production and reduce reliance on imports
Improve infrastructure
Develop transportation,energy and storage infrastructure to reduce costs
Economic diversification
Encourage investment in non oil sector to reduce reliance on imports
Job creation
Creat job to increase disposable income and stimulates economic growth
Monetary policy
Interest rate management
Adjust interest rates to control inflation and stabilize the currency
Transperency
Increase transperency in economic data and policy decisions
In conclusion the above suggestions are strategic action plans to control high cost of living and inflation to enable citizens have a stable economy.
– Benjamin Ibrahim writes from Lokoja, Kogi state.
+2348069596250
