LCCI to FG: Fasttrack energy reforms to improve electricity supply
The Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government to accelerate energy reforms to improve electricity generation, reduce reliance on costly diesel and petrol, and ensure stable power supply for manufacturers and Small and Medium scales Enterprises (SMEs)
Director General of the LCCI, Dr Chinyere Almona who made this remark on the dealing with unbearable High inflation and interest rate said that the transition to renewable energy sources should be prioritized to reduce production costs.
She said there is need to improve transportation infrastructure to cut logistics costs, adding that investment in rail and road networks will ease the transportation of goods, reducing price volatility in consumer markets.
She said that the volatility in the exchange rate market has amplified inflationary pressures by raising the cost of imported goods and services.
advocating for a more transparent foreign exchange management to reduce speculation and stabilize the Naira, she said “a stable exchange rate will help moderate imported inflation, especially in essential commodities and raw materials needed for local production. The Chamber reiterated that CBN should work with the Nigeria Customs Service to fix the import duty exchange rate for a certain period to aid business decisions on importation.
Speaking further she said “While the marginal decline in the August inflation rate is a welcome development, the upward trend in year-on-year inflation highlights the need for sustained policy responses to keep the pressures down.
We urge the government to adopt a holistic approach to address inflation by boosting local production, stabilizing energy and transportation costs, and aligning monetary and fiscal policies.
Acknowledging the government efforts towards a monetary easing regime, she said the marginal drop in the August headline inflation rate to 32.15 per cent, down from 33.40 per cent in July, is on a good note.
While this represents a month-on-month improvement, the broader year-on-year comparison still highlights a troubling 6.35 per cent increase compared to July 2023, and the interest rate raised to 27.25 percent both present a tense business environment.
She pointed out that the marginal drop in inflation reflects some level of policy impact., but it is insufficient to address the deep-rooted challenges contributing to high inflation, particularly in food and core inflation categories.
She said the LCCI concerned remains that food inflation surged to 37.52 per cent year-on-year, with core inflation reaching 27.58%, both of which highlight severe pressure on the purchasing power of Nigerians.
