The Lagos Chamber of Commerce and Industry (LCCI) has urged monetary and fiscal authorities to address the deep-rooted challenges contributing to high inflation, particularly regarding food and core categories.
Dr. Chinyere Almona, the Director General of LCCI, made the appeal in a statement released on Wednesday in Lagos. She acknowledged the government’s efforts to ease the monetary regime but emphasized the need for more substantial measures.
While the marginal drop in the August headline inflation rate to 32.15%, down from 33.40% in July, is a positive sign reflecting some policy impact, Almona pointed out that a troubling 6.35% year-on-year increase compared to July 2023 remains concerning.
The recent interest rate hike to 27.25% has created a tense business environment. Almona criticized the Central Bank of Nigeria’s (CBN) justification for the increase due to fears of a petrol price hike as unsustainable. She urged the government to address these issues promptly for the benefit of the Nigerian economy.
Key recommendations from Almona include:
– **Accelerating Energy Reforms**: Improving electricity generation to reduce reliance on costly diesel and petrol, ensuring stable power supply for manufacturers and Small and Medium Enterprises (SMEs).
– **Enhancing Transportation Infrastructure**: Investing in rail and road networks to lower logistics costs and reduce price volatility in consumer markets.
– **Transparent Foreign Exchange Management**: Reducing speculation and stabilizing the Naira to moderate imported inflation, particularly for essential commodities and raw materials.
Almona reiterated the need for the CBN to collaborate with the Nigeria Customs Service to fix the import duty exchange rate for a set period to aid business decisions. She called for a holistic approach to tackling inflation by boosting local production, stabilizing energy and transportation costs, and aligning monetary and fiscal policies.
She concluded by advising monetary authorities to remain sensitive to these pressing issues, as they significantly impact businesses in Nigeria.
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