How Gov’t Can Address High Inflation Rate – ACCI

Abuja Chamber of Commerce and Industry (ACCI) has advised the Federal Government to address fundamental causes of rising inflation rates by making positive business climate a reality.

Responding to the news report on national inflation rate by the National Bureau of Statistics, the President of the Chamber , Dr Al-Mujtaba Abubakar observed that despite the best efforts of the government, the inflation rate is on the increase.

“While we appreciate the efforts of the administration to tame the increasing inflation rate, we note that the situation is far from improving. This has complicated the business climate and deepened challenges facing small scale businesses.

“The increase can be attributed mainly to the fuel scarcity being experienced in the country, where many resolve to buying at black market rate. Price per litre goes for between N400 to N700 naira depending on where you are buying from. This occurrence tends to have negative effect on businesses as fuel and diesel is the major source of energy for running businesses. This invariably leads to the spike in the cost of production coupled with logistic issues that has been compounded by insecurity.

“Furthermore, the Russian-Ukraine War is still biting hard on the global market which made wheat, bread, gas, others to be relatively expensive.

“The government, should implement business-friendly policies unlike the cash swap policy that negatively affected businesses, especially the MSMEs. The government should intensify the rehabilitation of refineries in the country and concession them out to private entities. The Executive and legislative arm of government should speed up the passage of the bill to unbundle the transmission aspect of electricity in Nigeria as it will make the power sector deliver on their mandate to serve Nigerian efficiently.

“Again, tax harmonization will improve the ease of doing business, make the market competitive and reduce business mortality. Government should begin to make use of satellite for surveillance by equipping the space agency to improve in addition to the equipping and retooling of our armed security force.

“The effect of High inflation will reduce the purchasing power of the masses making basic necessities unaffordable for the ordinary man. It will further worsen the unemployment rate in the country and make it harder for start-up business.

On the international scene it will make the Naira less competitive against other national currencies”, the statement concluded.

Dr Al-Mujtaba Abubakar, FCA, MFR
President, Abuja Chamber of Commerce and Industry (ACCI)