LCCI Urges CBN To Tackle Inflation Responsibly

By Clement Alphonsus

The Lagos Chamber of Commerce and Industry has urged the Central Bank of Nigeria to explore viable options to tackle the country’s rising inflation as the frequent interest rate hikes were not producing the desired result.

The chamber made this known in a statement signed by its Director-General, Chinyere Almona.

According to the statement, since April 2022, inflation has increased from 16.82 per cent to 21.91 per cent in February 2023, despite a 6.5 per cent increase in the key rate over the same period.

The statement read in part, “While the CBN has the overarching mandate of ensuring price stability, we suggest it should not be done in a manner that compromises growth, more especially in the face of high unemployment.

“Inflation chips away at purchasing power leads to inventory stockpiles, undermines growth, and creates a lot of economic uncertainties. Taming it, however, should not be done at the expense of growth and the most vulnerable sectors.”

It further noted that the instrumentality of monetary policy alone appears insufficient to guarantee the desired results of low, stable, and predictable prices.