Reason for raising hike not sustainable – LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has urged monetary and fiscal authorities to significantly address the root causes of high inflation. Director General, LCCI, Dr Chinyere Almona, in a statement made available to newsmen on Wednesday in response to the recent hike in rate by the Central Bank of Nigeria (CBN) said the […]

The Lagos Chamber of Commerce and Industry (LCCI) has urged monetary and fiscal authorities to significantly address the root causes of high inflation.

Director General, LCCI, Dr Chinyere Almona, in a statement made available to newsmen on Wednesday in response to the recent hike in rate by the Central Bank of Nigeria (CBN) said the decision presented a tense business environment.

“The excuse by the Central Bank of Nigeria (CBN) that the monetary policy rate was raised due to fears of a petrol price hike is not a sustainable argument.

“We expect the government to tackle the issues to benefit the Nigerian economy in a timely manner, too,” she said.

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She observed that the marginal drop in the August headline inflation rate to 32.15 per cent, down from 33.40 per cent in July, was on a good note, reflecting some level of policy impact.

Almona, however, noted that while the development represented month-on-month improvement, the broader year-on-year comparison showed a troubling 6.35 per cent increase compared to July 2023.

She observed that a stable exchange rate will help moderate imported inflation, especially in essential commodities and raw materials needed for local production.

“We reiterate our earlier recommendation that the CBN should work with the Nigeria Customs Service to fix the import duty exchange rate for a certain period to aid business decisions on importation.

“We urge the government to adopt a holistic approach to address inflation by boosting local production, stabilising energy and transportation costs, and aligning monetary and fiscal policies.

“We advise that the monetary authorities remain sensitive and focus on these troubling issues because they adversely impact businesses in Nigeria,” she said.