•As LCCI recommends measures

By Yinka Kolawole

Amidst sustained inflationary pressures in the Nigerian economy, the Manufacturers Association of Nigeria (MAN) has listed the impact already being felt in the real sector.

The Lagos Chamber of Commerce and Industry (LCCI) also took similar position yesterday with a call on the federal government, FG, to step up efforts to tackle costs of staple foods in the country.

Recall that on Tuesday the National Bureau of Statistics (NBS) reported that headline inflation rate accelerated to 24.08 percent in July 2023, the sixth consecutive month rise.

Responding to the NBS report in a statement made available to Vanguard yesterday, Director General, MAN, Segun Ajayi-Kadir, said in addition to the increase in the cost of production some of the impacts of the rising inflation rate on manufacturing include: reduced profit margin; supply chain disruptions; uncertainty in planning; and reduction of consumer spending.

Making some recommendations he stated: “Some of the ways that will ensure effective and conducive operations of manufacturers in the Nigerian economy include: Striving towards a stable exchange rate is crucial to controlling inflation; Employment of collaborative fiscal policy measure through budgeting and effective taxation to complement the monetary policy actions taken by CBN; Increased targeted support to the agricultural sector to enhance productivity, reduce reliance on imports and stabilize food prices; Increased targeted support to the agricultural sector to enhance productivity, reduce reliance on imports and stabilize food prices.

“Formulation of policies that promote a stable and conducive business environment which can attract both local and foreign investments, leading to increased production, job creation, and ultimately, stability in prices; Communicate effectively with the public and stakeholders about the government’s commitment to controlling inflation which can help manage inflation expectations, which can influence price-setting behavior; addressing the challenges of insecurity’’.

On her part, Director General, LCCI, Dr Chinyere Almona, stated: “LCCI is concerned that there may be more inflationary pressures in the coming months due to the volatility of the Naira as well as the lagged effects of subsidy removal and its transmission to general prices.

“The government should step up efforts to tackle food costs, especially staple food items. The chamber implores the government to hasten the provision of the anticipated palliatives to lessen the impact of the rising trend in prices on economic agents.”