The Lagos Chamber of Commerce and Industry (LCCI) has disclosed that Nigerians paid more for goods and services in 2022 than they did in July 2021 by relatively high rate of 19.64 per cent.
The chamber noted that this was largely attributable to rise in food and energy prices, FOREX scarcity for imports of critical raw materials for manufacturing, and constrained production due to insecurity in some agricultural sites across the country.
LCCI’s Director-General, Dr. Chinyere Almona, made this known while reacting to the July 2022 inflation rate released by the National Bureau of Statistics (NBS).
Almona stated that with this, Nigeria has now had six consecutive months of increased inflation, and the rate is at an almost 17-year high.
On the other hand, she said core inflation increased to 16.26 per cent from 15.75 per cent because of price increases in gas, liquid fuel, solid fuel, garments, and passenger transport by road and by air.
According to her, it should also be noted that the high cost of aviation fuel, Jet A1 drove the cost of air transport to the roof and became a major driver of the July inflation rate.
While reviewing the states’ inflation rates, the LCCI DG explained that the three lowest rates were recorded in Borno, Jigawa, and Kaduna, while the highest rates were found in Akwa Ibom, Ebonyi, and Kogi states, adding that “these records may reflect the lockdown on food items in the northwest and northeast since the food items are not brought to the south due to insecurity constraining the movement of goods.
“This is a warning signal of massive food waste in some parts and scarcity in others. Government should offer a targeted intervention for the movement of food items from production areas to high-demand areas to cushion inflationary pressures.”
While evaluating the impacts of the inflation rate on the manufacturing sector, Almona stressed for manufacturers, input prices have spiked. Items such as diesel which most firms depend on for powering their factories have continued to rise in price causing an unbearable cost of production which also translates to higher consumer prices.
To her, Nigeria’s energy crisis is worsened by the poor supply of electricity and a bumpy road to renewable energy deployment.