The Lagos Chamber of Commerce and Industry (LCCI) has emphasized the urgent need for decisive action to curb inflation and stabilize prices amidst rising economic challenges in Nigeria. Director General of the Chambers, Dr. Chinyere Almona, FCA, in a Statement to the Media Wednesday, expressed concerns about rising inflation rates despite interventions by the monetary and fiscal authorities which according to the National Bureau of Statistics (NBS) reached 33.7% in April.
“The ongoing debate on a new minimum wage for Nigerian public workers is becoming a critical variable in the discourse about the next levels of government recurrent spending that may further fuel inflationary pressures into the second half of the year. The Government should begin to plan for the massive commitment of resources to implement the new minimum wage when the debates are over.
“This calls attention to reducing the cost of governance, eliminating duplicate functions in government agencies through mergers, and investing more in the deployment of technology to automate some government processes. Beyond the instrument of rate hikes to curb inflation, economic managers should consider non-cash interventions to reflate the economy without necessarily increasing the currency in circulation. If this tightness continues, we should not expect to achieve our growth projection of about 3.37% this year.
“The government should seek more options to support industrial productivity, fight insecurity, invest more in infrastructure like power and transportation, deploy more technology for automation to ease the cost of doing business, and give a boost to non-oil exports to increase our foreign exchange earnings. By adopting these comprehensive measures, we can effectively curb inflation and foster a stable, resilient economy. It is essential to act swiftly and decisively, drawing on successful examples and tailoring them to our unique economic context.”
The Chamber also recommended measures to boost food production, lower the cost of doing business, improve transport infrastructure, enhance security, and promote non-oil exports.
Furthermore, the Chamber called for non-cash interventions to stimulate economic growth without increasing currency circulation. It emphasized the need to invest in industrial productivity, infrastructure, technology, and non-oil exports to enhance foreign exchange earnings and achieve sustainable economic development.
In conclusion, the LCCI urged swift and decisive action by economic managers, emphasizing the importance of adopting comprehensive measures tailored to Nigeria’s unique economic context. By implementing these measures effectively, the Chamber believes that Nigeria can curb inflation and foster a stable, resilient economy.
