LCCI: Higher inflation may further constrain production

The Director-General for the Lagos Chamber of Commerce and Industry, Dr. Chinyere Almona, has expressed concerns over the rising inflation rates in the country, stating that if left unchecked, it may further constrain production and lead to a steeper rise in poverty and unemployment rates. In a recent interview with CNBC Africa, Dr. Almona highlighted the impact of inflation on the economy, particularly on manufacturers and the production sector. She emphasized the need for a comprehensive approach that combines both monetary and fiscal policies to address the drivers of inflation. The current focus on monetary tools alone, she argued, is insufficient to tackle the complex economic challenges facing the country. Dr. Almona pointed out that as inflation rises, purchasing power decreases, leading to inventory stockpiling and reduced job opportunities. She called for urgent attention to infrastructure, security, and other production indicators to help manage inflation effectively. The Chamber has been advocating for a balanced mix of policies to support economic stability and growth. Looking ahead, Dr. Almona discussed the potential impact of the removal of fuel subsidies on inflation and borrowing costs. She highlighted the challenges facing manufacturers, including foreign exchange constraints and the need for policy clarity on subsidy removal. Dr. Almona stressed the importance of addressing key economic sectors such as infrastructure, security, mining, and manufacturing to stimulate growth and create employment opportunities. She emphasized the need for value addition in the mining sector to maximize resources and generate revenue for the nation. Dr. Almona also underscored the significance of the non-oil sector in contributing to GDP and boosting foreign exchange earnings through value-added exports. As the country awaits the Q1 economic figures, Dr. Almona acknowledged the tough first quarter marked by election-related disruptions and cash flow challenges. She expressed hope for improvements in the upcoming quarters and called for concerted efforts to address the economic challenges facing the nation. In conclusion, Dr. Almona emphasized the need for proactive measures to enhance economic stability, create a conducive business environment, and drive sustainable growth in Nigeria's economy.