The Lagos Chamber of Commerce and Industry (LCCI) has called on monetary and fiscal authorities to address significant challenges contributing to high inflation, particularly in food prices and core categories. In a statement on Wednesday, Dr. Chinyere Almona, the Director General of LCCI, acknowledged the government’s ongoing efforts to ease the monetary regime.
She noted a slight decrease in the August headline inflation rate to 32.15%, down from 33.40% in July, which reflects some positive impact of recent policies. However, Almona pointed out that the year-on-year comparison reveals a concerning 6.35% increase compared to July 2023.
Additionally, she criticized the recent increase in the interest rate to 27.25%, indicating that it creates a challenging business environment. Almona stated that the Central Bank of Nigeria’s justification for the rate hike, citing concerns over potential petrol price increases, is not a sustainable rationale.
To support the Nigerian economy, she urged the government to:
- Accelerate energy reforms to enhance electricity generation, reduce dependency on expensive diesel and petrol, and ensure a stable power supply for manufacturers and Small and Medium Enterprises (SMEs).
- Improve transportation infrastructure to lower logistics costs through significant investments in rail and road networks, facilitating smoother transportation of goods and minimizing price volatility in consumer markets.
- Implement more transparent foreign exchange management practices to decrease speculation and stabilize the Naira.
Almona’s statement highlights the need for comprehensive policy initiatives to strengthen the Nigerian economy and alleviate inflationary pressures.