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By Merit Ibe
Nigeria’s Organised Private Sector (OPS) has expressed worry over continued uptrend in domestic consumer prices, blaming insecurity and other structural bottlenecks to production. for the uptick.
The OPS which comprises Manufacturers Association of Nigeria (MAN), the National Association of Chambers of Commerce, Industry Mines and Agriculture (NACCIMA), Lagos Chamber of Commerce (LCCI) among others, noted that tackling inflation requires urgent government intervention to address the challenges bedevelling the supply side of the economy, and ensure price stability before the situation becomes deplorable.
Decrying the recent increase in inflation rate to 18.17per, the Director General, MAN, Segun Ajayi-Kadir, said rising inflation in a country that is only recovering from recession was worrisome, more so for the manufacturing sector that remained in recession, even after the technical exit of the country’s economy.
“The 18.17 per cent inflation rate is not healthy for the well-being of the people and the growth aspiration of the economy. It should therefore be properly managed before it spirals out of control.”
Ajayi-Kadir noted that the current inflationary condition in Nigeria adversely affects the profitability of the manufacturing sector and is partly responsible for its competitiveness, the latter being a major contributor to the low-export penetration of goods manufactured in the country into the international market.
The association implored the government to tackle the current security situation and the continued incidence of COVID-19 as they are negatively impacting businesses and lowering the resilience capacity. He said government needs to pursue consumer price stabilisation measures that wil stimulate growth in agricultural output, deliberately support the manufacturing sector to guarantee improved output that can engender the reduced intensity of too much money chasing after fewer goods.
