The Federal Government has been encouraged by the Lagos Chamber of Commerce and Industry (LCCI) to implement monetary and fiscal policies to control inflation.
The National Bureau of Statistics (NBS) reported that the headline inflation rate for January 2023 increased by 0.47 percent to 21.83 percent after edging up a few basis points in December 2022.
In a statement, LCCI Director-General Chinyere Almona said that growing inflation has made life tougher for Nigerians, especially at a time when multidimensional poverty has reached record levels with 133 million people living below the poverty line.
According to LCCI, while the monetary authority keeps hiking rates to beat inflation, the supply side should also be explored with the same vigor, stating that, other monetary and fiscal policies should be equally deployed to tame inflation.
“The sustained rise in the general price level in recent times has caused some weakening in purchasing power. This is coming at a time when multidimensional poverty has climbed too high with an unprecedented 133 million Nigerians living below the poverty line (NBS).
“The impact of rising inflation is far-reaching. It distorts fixed interest rate payments for recipients and payers alike, leaving in its trail of disruptions and dislocations in the economy.”
The statement noted that the CBN should also check the extent of its monetary financing of the federal government through ways and means.
