The Lagos Chamber of Commerce and Industry (LCCI) has urged the Nigerian government to sustain cost relief measures despite a moderation in the inflation rate in July 2024.
In a statement signed by the Director General, Chinyere Almona, the Chamber acknowledged the slight decrease in inflation rate but emphasized the need for continued efforts to reduce the cost of doing business in Nigeria.
The inflation rate eased to 33.40% in July 2024 from 34.19% in the previous month, according to the National Bureau of Statistics (NBS).
However, the LCCI noted that core inflation rose from 27.47% in June to 27.49% in July, indicating a need for sustained policy interventions.
The Chamber commended the government’s initiatives to tame inflation and stabilize the exchange rate but advised that these programs be extended and expanded to impact more economic players.
Specifically, the LCCI recommended sustaining and expanding policies such as:
1. Import duty waivers on food and drugs
2. Introduction of Compressed Natural Gas (CNG) vehicles for cheaper transportation
3. Foreign exchange market reforms to boost supply
4. Direct crude supply to local refineries
5. Transition to renewable energy
Furthermore, the LCCI emphasized the need to address the root causes of food insecurity, including empowering farmers, providing agricultural inputs, investing in agrarian mechanization, and mitigating climate change impacts.
The Chamber also urged the government to:
1. Sustain the fight against crude oil theft and pipeline vandalism
2. Support the newly created Ministry of Livestock Development to address poultry and fisheries shortages
3. Encourage subnational governments to replicate federal-level initiatives for grassroots development
4. Intensify the fight against insecurity to improve investor confidence
5. Support the productive sector and incentivize exportable goods production to increase FX earnings
The Chamber stressed the importance of consistent policy efforts to create certainty in the policy environment, boost industry confidence, and drive economic growth.
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