The Lagos Chamber of Commerce and Industry (LCCI) has called on monetary and fiscal authorities to address the underlying issues contributing to high inflation rates in Nigeria, particularly concerning food and core categories. Dr. Chinyere Almona, Director General of LCCI, made this appeal in a statement released to the press on Wednesday in Lagos.
Dr. Almona acknowledged the government’s ongoing efforts to ease the monetary regime, noting that the slight reduction in the August headline inflation rate to 32.15 percent, down from 33.40 percent in July, is a positive sign of policy impact. However, she expressed concern over the broader year-on-year comparison, which shows a 6.35 percent increase compared to July 2023, indicating persistent inflationary pressures.
Almona highlighted that the Central Bank of Nigeria’s decision to raise the monetary policy rate to 27.25 percent has created a challenging environment for businesses. She argued that the justification for the rate hike—stemming from concerns over potential fuel price increases—is not a sustainable approach.
“We expect the government to tackle these issues to benefit the Nigerian economy in a timely manner,” Almona stated.
The LCCI DG recommended that the government accelerate energy reforms to boost electricity generation and reduce reliance on costly diesel and petrol, ensuring a stable power supply for manufacturers and Small and Medium Enterprises (SMEs). She also emphasized the need for improved transportation infrastructure to lower logistics costs, advocating for investments in rail and road networks to facilitate the efficient movement of goods and stabilize consumer prices.
Almona further urged the government to adopt a more transparent foreign exchange management system to curb speculation and stabilize the Naira. She pointed out that a stable exchange rate would help moderate imported inflation, particularly for essential commodities and raw materials needed for local production.
“We reiterate our earlier recommendation that the CBN should collaborate with the Nigeria Customs Service to fix the import duty exchange rate for a set period to support business decisions on importation,” she added.
Almona called for a holistic approach to combating inflation, including boosting local production, stabilizing energy and transportation costs, and aligning monetary and fiscal policies. She advised the monetary authorities to remain sensitive to these issues as they significantly impact businesses across Nigeria.
Leave a Reply