Stabilise economy for improved living condition, FG warned

The Lagos Chamber of Commerce and Industry (LCCI) has expressed grave concern over the persistent rise in inflationary pressure and food crisis, urging the government to stabilise the economy to save the lives of millions of citizens.

Director-General of the chamber, Dr Chinyere Almona, decried that the inflationary pressure, particularly in the food segment, poses a significant challenge to the economic well-being of Nigerians.

In February 2024, food inflation soared to 37.92 per cent year-on-year, driven notably by increases in prices of essential commodities such as bread, cereals, potatoes, yam, fish, oil, meat, fruits, coffee, tea and cocoa.

The spike in inflation, she said, exacerbates the already precarious living conditions of millions of Nigerians, amplifying social and economic vulnerabilities.

Recent data released by the Nigerian Bureau of Statistics (NBS), indicate a worrying trend, with the headline inflation rate reaching 31.7 per cent in February, a significant increase from the previous month’s rate of 29.9 per cent.

Almona said that the seemingly ineffective interventions by the government in curbing the rising headline inflation are impacting the business community negatively. She said the unabated inflationary pressures have continued to distort the workings of the economy and make business and investment planning a huge challenge.

Lauding the step taken by the Central Bank of Nigeria (CBN) regarding fertilizer access to farmers through the Federal Ministry of Agriculture and Food Security, the DG said more direct and targeted interventions should focus on agricultural mechanisation, while adoption of lower import duty exchange rate should be used for agricultural inputs.

Putting forward the chambers’ recommendations, she urged the federal government to address the rising inflationary trend and foster economic stability by prioritising smallholder farmers and vulnerable groups, including women and youth.

It advocated collaboration between the CBN, Federal Ministry of Agriculture and Food Security, state ministries of agriculture, agricultural extension services, research institutions and farmer cooperatives on relevant schemes to boost food production.

She pleaded with the government to also promote the adoption of climate-smart agricultural practices to enhance resilience to environmental challenges, promote the integration of fertiliser distribution with other agricultural value chain interventions, such as improved seeds, irrigation and post-harvest management, support further expansion of local fertiliser production capacity to reduce dependency on imports and enhance long-term sustainability and utilise information and communication technologies (ICTs) to disseminate agricultural advisory services, market information and weather forecasts to farmers.

“Also, the government should empower farmer cooperatives and associations to play a central role in the distribution and management of subsidised inputs and access to finance; improve transportation infrastructure, including road networks to reduce the cost of transportation; strengthen agricultural value chains, including the establishment of more storage facilities and promote agro-processing industries to reduce post-harvest losses and enhance food security.

“The Chamber is optimistic that if the government harmonises its fiscal and monetary instruments to tackle the cost of agricultural production, enhance food processing and sustain the fight against insecurity, inflationary pressures may soon begin to abate, and other economic variables can begin to record positive indicators,” she said.

Meanwhile, a local manufacturer, Muideen Ibrahim, has urged the Federal Government to declare a state of emergency in the manufacturing sector to revamp the economy.

Ibrahim who is the Chief Executive Officer of BAMIB Resources and Investments Company Limited made this charge yesterday. He noted that manufacturers are besieged with a multitude of problems, ranging from erratic power supply, multiple taxation and government inadequacies, poor regulatory framework and low demand for products and services, among others.
He explained that declaring a state of emergency would aid in revamping the sector and help it contribute to the nation’s gross domestic product (GDP).

“The government can support manufacturers in various ways by creating an enabling environment and implementing workable policies. This included giving us interventions, incentives and real support that will see them through all the various stages of manufacturing and growth.

“Power supply is very key and the importance of power to sustainable production cannot be overemphasised. So, the government should fix power as a matter of utmost urgency. Many manufacturers have closed shop due to the poor power supply. Unfortunately, diesel prices have skyrocketed to N1,600 per litre or more, depending on location.

“The government should also provide basic infrastructure for manufacturers as well,” he said. He urged the government to also create technology incubation hubs in all the local government areas and the state capitals as a way to revamp the real sector.

He also urged the Federal Government to urgently create a Ministry of Small, and Medium Enterprises (SMEs) in the country, adding that this is obtainable in other climes “where SMEs are doing very well because their importance in any nation cannot be over-emphasised,” he said.

He noted that SMEs were the engine room and lifeblood of any country and could provide millions of jobs for the teeming unemployed in the country.
He also urged the government to call for round table discussions with the manufacturers occasionally to assess their pain points and chart the way forward for the sector.