The Lagos Chamber of Commerce and Industry (LCCI) has raised alarm over the persistent increase in inflationary pressures within the Nigerian economy. Recent data released by the National Bureau of Statistics (NBS) indicates a worrisome trend, with the headline inflation rate climbing to 31.70% in February 2024, a notable rise from the previous month’s rate of 29.90%.
In a statement signed by Director General of the LCCI, Dr. Chinyere Almona, FCA, the Chamber expressed concerns about the seemingly ineffective interventions by the government to address this rising trend, which has led to significant distortions in the economy, making business and investment planning increasingly challenging.
“Of particular concern to the LCCI is the surge in food prices, which poses a significant challenge to the economic well-being of Nigerians. In February 2024, food inflation soared to 37.92% year-on-year, driven primarily by increases in prices of essential commodities such as bread, cereals, potatoes, yam, fish, oil, meat, fruits, coffee, tea, and cocoa. These inflationary pressures exacerbate the already precarious living conditions for millions of Nigerians, amplifying social and economic vulnerabilities across the country.
“While acknowledging the recent steps taken by the Central Bank of Nigeria (CBN) regarding fertilizer access for farmers through the Federal Ministry of Agriculture and Food Security, the LCCI emphasizes the need for more direct and targeted interventions. The Chamber recommends prioritizing smallholder farmers and vulnerable groups for assistance, as well as fostering strong collaboration between relevant government agencies and farmer cooperatives to enhance agricultural productivity and resilience.
“The LCCI has proposed a comprehensive set of strategies to address the rising inflationary trend and foster economic stability. These include prioritizing agricultural mechanization, promoting the integration of fertilizer distribution with other agricultural value chain interventions, and empowering farmer cooperatives to play a central role in input distribution and access to finance. Additionally, urgent measures are needed to improve transportation infrastructure and strengthen agricultural value chains to reduce post-harvest losses and enhance food security.”
“Despite the challenges posed by inflation, the LCCI remains optimistic that with targeted interventions and a conducive policy environment, Nigeria can overcome these hurdles and achieve inclusive growth and prosperity for all.
“The Chamber calls on the government to harmonize fiscal and monetary policies and sustain efforts to address the cost of agricultural production, food processing, and insecurity to mitigate inflationary pressures and stimulate economic recovery.Asian Stocks Mixed as Investors Await Federal Reserve Decision.”
