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Address rising cost of living, fiscal indiscipline, LCCI tells FG

By Tobi Awodipe
19 February 2025   |   10:11 am
Director-General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, has said despite the reported lower rate due to the rebasing, inflation is still sky high and prices are still rising. She said while a lower inflation rate
Almona

Director-General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, has said despite the reported lower rate due to the rebasing, inflation is still sky high and prices are still rising. She said while a lower inflation rate
might seem positive, it does not automatically improve living standards.

“Prices are still rising, wages remain stagnant and unemployment is still high, keeping real incomes under pressure. The rebased inflation rate only reflects a different measurement, not an actual drop in prices. For most Nigerians, essential costs like food and transportation remain high, meaning living conditions will not improve unless there is a real reduction in the cost of necessities,” she said.

She added that while the rebased inflation rate provides policymakers with a clearer view of economic trends, it does not resolve the rising cost of living. Urging the government to implement targeted interventions to address inflationary pressures and improve economic stability, she said tackling food inflation, which accounts for over 50 per cent of price increases is paramount.

“Policies should focus on boosting agricultural productivity, reducing post-harvest losses, and improving transportation and storage infrastructure to ensure food affordability. Stabilising FX is crucial, as naira devaluation has been a major driver of inflation. Encouraging local production and reducing reliance on imports can help strengthen the currency and control price surges.” Further urging the government to embrace fiscal discipline, she said its excessive borrowing and deficit spending contribute to inflation.

“At the same time, the Central Bank of Nigeria (CBN) must carefully adjust monetary policies, ensuring interest rate decisions strike a balance between controlling inflation and sustaining economic growth,” she said.

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