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By Merit Ibe
The Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have attributed the continuing inflationary pressure to the fallout of the government’ policy and measures.
The National Bureau of Statistics, on Tuesday, reported that inflation rose to 24.08 per cent year-on-year in July, a 1.29 percentage points increase from the 22.79 per cent that was recorded in June 2023.
He decried that the current inflationary condition in Nigeria was adversely affecting the operation of the manufacturing sector, just like most other sectors of the economy.
Some of the impacts of the rise in inflation on manufacturing he listed included Increased cost of production, Reduced Profit Margin; supply chain disruptions; Uncertainty in Planning, reduction of consumer spending, among others.
The MAN boss pointed out that elevated inflation serves as a significant sign of underlying macroeconomic weaknesses and neglecting to tackle the underlying causes will exacerbate constraints on economic expansion and elevate the unemployment rate within the country.
“It’s important to note that addressing inflation is a complex and long-term endeavor that requires a coordinated effort from various stakeholders, including the government, central bank, private sector and civil society.
On its part, the 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.
Director General of the chamber, Dr Chinyere Almona, recommended that the government should step up efforts to tackle food costs, especially staple food items.
“We commend the Federal Government’s declaration of a state of emergency on food security and urge them to prioritize farmers’ areas of assistance, fertilizers, and seeds to mitigate the effects of subsidy removal as well as strengthen strategic food reserves to be used as price stabilization mechanisms.
“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.”
