LCCI raises the alarm over high cost of living in Nigeria
Joy Obakeye
The Lagos Chamber of Commerce and Industry (LCCI) has asked the Federal Government to take actions that will stabilise food prices through improved food production, owing to the current high inflation rate which has led to an increase in food prices.
The Chamber, at its second quarter (Q2) press conference on the economy, also raised concern over the country’s current high debt profile, urging the FG to cut down on its debt and seek other ways of raising funds.
According to its President, Mr Babatunde Ruwase, measures should be put in place to address the situation.
“Inflation rose to 11.40 per cent in the month of May, representing the highest rate since December 2018 and higher than the 9.9 per cent target in the 2019 budget.
“Consumer prices rose 1.11per cent on a month -on -month basis in May, up from April’s 0.94 per increase. This increase was reported by NBS (Nigeria Bureau of Statistics) to be largely caused by the faster growth of food prices.”
Ruwase added that the drop in the budgetary allocation to the agricultural sector does not reflect the government’s commitment to improving the country’s food situation.
”Unfortunately, the drop in the budgetary allocation to the agricultural sector from 2.23 per cent in 2018 to 1.56 per cent in 2019 does not reflect the desired government’s commitment to improving the country’s food situation.”
He explained that the plan by the Federal Government to obtain additional $2.7billion foreign loan calls for concern because in the last three years, the nation’s debt profile rose from $10.32billion in June 2015 to $22.08billion as of June 30, last year.
With this additional loan, the LCCI chief said the country’s foreign debt would increase and invariably increase the overall debt profile of the country which stood at N24.38 trillion as of December 31, 2018.
