Deploy monetary, fiscal policies to tame inflation, LCCI urges FG

By Joy Obakeye

The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to deploy monetary and fiscal policies to tame inflation.

The Chamber reacting to a report by the National Bureau of Statistics (NBS), that the January 2023 headline inflation inched up by 0.47 per cent to 21.83 per cent after scaling a few basis points in December 2022.

The Director-General of LCCI, Chinyere Almona, disclosed in a statement that the rising inflation has worsened the plight of Nigerians, particularly at a time when multidimensional poverty had climbed too high with an unprecedented 133 million Nigerians 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 vigour, 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).

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“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.