The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to reduce import tariffs on selected inputs for production in a bid to reduce inflationary pressures on Nigerians.
This was disclosed in an interview by Dr Muda Yusuf, the outgoing Director-General, LCCI, on Sunday in Lagos, according to the News Agency of Nigeria.
The LCCI boss revealed that the main drivers of inflation include cost-push factor, supply chain disruptions and monetization of fiscal deficit. He cited high energy costs including diesel, aviation fuel and electricity prices and also high import tariffs and transportation costs as factors influencing inflations in Nigeria
What the LCCI said
“Headline inflation of 17.75% is still a reflection of intense and persistent inflationary pressure on the Nigerian economy.
“Even more worrisome is the incessant high food inflation, which was 21.83 per cent in June.
“High inflation hurts investment, it is injurious to the welfare of the people and detrimental to the economy.
“The main factors that have disrupted output in the economy are also heightened insecurity, exclusion of some critical industries from the official foreign exchange window, trade policy issues, among others,” Dr. Yusuf said.
He added that other factors that need to be reviewed include import tariff on selected inputs for production, FX monetary stabilization, insecurity and improved productivity in the country.
What you should know
Nigeria’s inflation rate dropped further in the month of June 2021 to 17.75% from 17.93% recorded in the previous month (May 2021). This represents the third consecutive decline in headline inflation.
According to the recent NBS inflation report, the food inflation stood at 21.83% in June 2021 compared to 22.28% in May 2021 while core inflation which excludes the prices of volatile agricultural produce dropped from 13.15% recorded in May 2021 to 13.09% in the review period.