The Lagos Chamber of Commerce and Industry has urged the Central Bank of Nigeria (CBN) to explore viable options for tackling the country’s surging inflation, noting that frequent interest‑rate hikes have not yielded the desired results. The chamber made this appeal in a statement signed by its Director‑General, Chinyere Almona.
According to the statement, inflation rose from 16.82 % in April 2022 to 21.91 % in February 2023, despite a 6.5 % increase in the key rate over the same period. The chamber expects the CBN to either hold off on further rate hikes or, at most, implement modest increases, given the weak relationship between the key rate and inflation. Manufacturers and other businesses are already struggling with high borrowing costs and a cash crisis.
The statement continued: “While the CBN has the overarching mandate of ensuring price stability, it should not do so in a manner that compromises growth, especially in the face of high unemployment. Inflation erodes purchasing power, leads to inventory stockpiles, undermines growth, and creates economic uncertainty. Taming it should not come at the expense of growth and the most vulnerable sectors.”
The chamber also argued that monetary policy alone is insufficient to achieve low, stable, and predictable prices. It called for addressing structural rigidities in infrastructure and agriculture as essential steps toward rein in inflation.
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