The Abuja Chamber of Commerce and Industry (ACCI) has advised the federal government to address fundamental causes of inflation.
ACCI president, Al-Mujtaba Abubakar, in a statement on Thursday, expressed concern that despite government efforts, the country’s inflation rate was on the increase.
He warned that the effects of high inflation would reduce the purchasing power of Nigerians, thereby making necessities unaffordable for the ordinary man.
In February, Nigeria’s inflation rate surged to 21.91 per cent, up from 21.82 per cent in the previous month.
“While we appreciate the efforts of the administration to tame the increasing inflation rate, we note that the situation is far from improving,” Abubakar said.
“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 buy at black market rate.”
The ACCI president urged the federal government to create a more positive business climate in the country.
He said a litre of petrol is sold within the range of N400-N700 depending on the location.
“This occurrence tends to have a negative effect on businesses as fuel and diesel are the major source of energy for running businesses,” he said.
“This invariably leads to the spike in the cost of production coupled with logistic issues that has been compounded by insecurity.
“The government should implement business-friendly policies unlike the cash swap policy that negatively affected businesses, especially the micro small and medium enterprises (MSMEs).”
Abubakar also asked the government to intensify the rehabilitation of refineries in the country and concession them 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 to serve Nigerians efficiently,” he added.
“Again, tax harmonisation will improve the ease of doing business, make the market competitive and reduce business mortality.
“Government should begin to make use of satellites for surveillance by equipping the space agency to improve in addition to the equipping and retooling of our armed security force.”
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