Inflation to Hit 15% if Fuel Subsidy Removal Stays: CBN Governor
The rate of inflation in Nigeria is set to hit 15 percent by mid 2012 if the fuel subsidy removal stays.
In an exclusive interview with Channels Television on Thursday , the Central Bank Governor Sanusi Lamido Sanusi says contrary to analysts fears, The Nigerian economy can withstand inflation at 15 percent.
According to analysts at Renaissance Capital ” The impact of the petrol price hikes could go beyond simply pushing up transport costs,it is also expected to affect the cost of producing goods and services particularly the prices of food, clothing and footwear.
Meanwhile, economic activities across the country remain grounded as the industrial action called by labour groups enters day four.
However, talks between labour and government continues today in an effort to end the strike action.