By Melvin Onwubuke
The Lagos Chamber of Commerce and Industry has urged the Central Bank of Nigeria, to pay particular attention to factors contributing to the surge in inflation, in its monetary policy decisions.
This follows the statement signed by it’s Director-General. The LCCI said, the decision by the apex bank to increase the benchmark lending rate by 400 basis point, constitute an aggressive regulatory intervention, according to The Punch.
It highlighted that, the decision came at a critical time for the Nigerian economy, amidst challenges such as soaring inflation, commodity price hike, forex crises and soaring cost of production.
LCCI pointed out that, despite the CBN’s aim to control Inflation, specifically the 5th successive hike, raised concerns about its potency in dealing with surging food prices and their likely effect on businesses and economic growth.
It stated “The chamber’s view on the current fight against inflation is that the monetary and fiscal authorities should focus on the factors driving inflation rates by tackling the supply-side deficiencies instead of focusing too much attention on the demand-side management.
“We urge the CBN to continue with its forex market reforms to a conclusive end, as the high exchange rate against the naira is a major culprit in the skyrocketing inflation rates,” the statement read in part.
LCCI adviced the government to subsidise some productive sectors like agriculture, transport, and healthcare while being strict on enhancing the country’s security profile. transport.
