By Milcah Tanimu
In light of the ongoing inflationary challenges within the Nigerian economy, the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have both expressed concerns about the negative impact these trends are having on various sectors.
The National Bureau of Statistics (NBS) recently reported a surge in the headline inflation rate to 24.08 percent in July 2023, marking the sixth consecutive month of increase. The rising inflation has prompted the MAN to outline the detrimental effects being felt within the real sector. Meanwhile, the LCCI has urged the federal government to take more decisive action in addressing the escalating costs of essential food items.
Segun Ajayi-Kadir, Director General of MAN, highlighted several adverse consequences of the rising inflation on manufacturing, including reduced profit margins, disruptions in the supply chain, planning uncertainties, and decreased consumer spending. He proposed a series of measures to alleviate the challenges, such as stabilizing the exchange rate to curb inflation, implementing collaborative fiscal policies through effective taxation and budgeting, bolstering support for the agricultural sector to enhance local productivity and stabilize food prices, and creating a stable business environment to attract investments and spur production.
Dr. Chinyere Almona, Director General of LCCI, expressed concern that the volatile nature of the Naira and the delayed effects of subsidy removal could lead to further inflation in the coming months. She called on the government to address food costs, particularly for staple food items, and urged swift action in providing anticipated relief measures to mitigate the impact of rising prices on the economy.
As inflation continues to be a pressing issue, these organizations are advocating for multi-faceted approaches to stabilize prices, ensure sustainability, and promote economic resilience.