The Lagos Chamber of Commerce and Industry (LCCI) has issued a response to the recent announcement by the Federal Government regarding its intention to establish a National Commodity Board. The primary goal of this initiative according to the government is to regulate the escalating food prices in Nigeria, a critical concern for both the government and citizens as the National Bureau of Statistics data has indicated that Nigeria’s food inflation reached 33.9 percent as of January 15, 2024.
“Acknowledging the potential of the proposed commodity board to bring stability to food prices, the LCCI sees it as a positive step towards alleviating the burden on consumers, enhancing economic predictability, and creating a strategic food reserve to stabilize prices of essential grains and food items.
“The Chamber appreciates the government’s commitment to implementing short-term strategies to counteract subsidy removal, deploying concessionary capital from the Central Bank of Nigeria to the agricultural sector, and enhancing overall productivity in the agricultural value chain.
However, the LCCI highlighted certain considerations and provided recommendations to ensure the successful implementation of the National Commodity Board without causing market distortions or hindering private sector participation. The Chamber emphasized the importance of a comprehensive approach that combines short-term interventions with medium-term strategies for sustained and effective results.
Key recommendations from the LCCI include prioritizing the distribution of fertilizers and grains to farmers and households to counteract the immediate effects of subsidy removal on food prices, fostering collaboration between ministries to ensure efficient farmland irrigation, expediting the establishment of the National Commodity Board, actively engaging the youth population in agriculture, and ensuring active involvement of the private sector in decision-making processes.
The rising cost of food is a pressing issue that demands immediate attention and sustained effort. The LCCI expresses its readiness to collaborate with the government to implement these strategies and achieve the shared goal of ensuring food security and stabilizing prices for the benefit of all Nigerians.
