The Lagos Chamber of Commerce and Industry (LCCI) has responded to the latest inflation figures, cautioning that the sharp decline from 34.8 per cent in December 2023 to 24.48 per cent in January 2024 does not indicate a real reduction in prices......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Instead, the drop is largely due to the rebasing of the Consumer Price Index (CPI), which updates the weights assigned to various goods and services to better reflect current consumption patterns.
The chamber noted that while the new methodology provides a clearer picture of price movements, it does not change the fact that the cost of living remains high for most Nigerians.
The LCCI emphasised that despite the lower reported inflation rate, essential goods and services such as food and transportation continue to rise in price.
It said the rebasing primarily affects the way inflation is calculated and does not reflect a sudden improvement in economic conditions. The chamber warned against misinterpreting the figures as an indication of better purchasing power or improved living standards.
Many Nigerians are still struggling with high prices, stagnant wages, and widespread unemployment, meaning real economic relief remains elusive.
According to LCCI, addressing inflation requires comprehensive government action. One of the most pressing concerns is food inflation, which accounts for over 50 per cent of price increases and remains a key driver of overall price increases.
The chamber called for increased agricultural productivity, improved transportation networks, and better storage facilities to ensure food affordability.
Additionally, it stated that stabilising the exchange rate is crucial, as the depreciation of the naira continues to fuel inflation. Encouraging local production and reducing reliance on imports would help strengthen the currency and limit price fluctuations.
The LCCI also stressed the importance of fiscal discipline in controlling inflation, adding that excessive government borrowing and deficit spending have contributed to economic instability, making it necessary to cut unnecessary expenditures while prioritising infrastructure and social investments.
“Monetary policies must also be carefully managed to balance inflation control with economic growth. The Central Bank of Nigeria (CBN) should adopt policies that make credit more accessible to businesses while ensuring inflation remains under control,” it said.
While the rebased inflation figures provide a more accurate representation of Nigeria’s economic landscape, LCCI warned that the government must not overlook the reality of rising prices.
Without targeted interventions, the lower inflation rate will remain a statistical adjustment rather than an improvement in Nigerians’ living conditions.
The chamber urged policymakers to take immediate and effective steps to curb inflationary pressures, ensuring that economic growth translates into tangible benefits for citizens.