Taiwo Hassan 
Following the National Bureau of Statistics (NBS) report that Nigeria’s inflation rate had increased to 20.52 per cent from 19.64 per cent, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has reported that the economy is currently suffering stagflation amidst rising unemployment and increasing food prices in the country. Specifically, NACCIMA pointed out that with the current 20.52 per cent inflation rate, dubbing it the highest figure recorded in the country since September 2005, the economy had shifted significantly into a walking inflation, making the economy too swift for individuals and businesses to sustain.
NACCIMA National President, Ide John Udeagbala, made this known to New Telegraph. He said it was now urgent for government to develop and implement policies targeted at increasing food supply and decreasing enterprises’ production costs in order to navigate out of the spiraling inflation thay is puncturing economy. Udeagbala said that government needed to encourage local production and ensure that adequate infrastructures are put in place to meet the country’s needs and strengthen the food supply chain. This, according to him, will also encourage the private sector and attract Foreign Direct Investment (FDI), thereby positively impacting the Gross Domestic Product (GDP). The NACCIMA National President added that Nigeria could increase its output if the nation’s production problems are addressed in the interest of inclusive economic growth and development.
Speaking further, he added that food inflation also increased to 23.12 per cent in August 2022, a 1.1 per cent increase from the 22.02 per cent recorded in July 2022. Udeagbala noted that the contributing factors in inflation could be linked to several factors, including the high cost of raw materials, the devaluation of the naira, and the disruption of the supply chain caused by insecurity, among others.
The persistent insecurity in the nation has continued to impede agricultural activities and deter investments in agriculture in the nation’s foodproducing regions, resulting in a decline in agricultural output. He said: “Most farmers and those earning a living within the value chain have been left unemployed, worsening the spiraling unemployment rate in the country. Therefore, we believe that Nigeria is currently suffering Stagflation rather than Inflation. According to the year-overyear percentage change in inflation in Nigeria, the Nigerian economy has shifted significantly into a walking inflation. That is, the country’s economy is too swift for individuals and businesses to sustain.
It is a well-established fact that Nigeria relies heavily on import of finished goods demanded by households and raw materials used by industry. Ironically, with the proper infrastructures, these items may be produced domestically. While touching on the Ukraine’s invasion and wheat production, Udeagbala sated: “As a result of the war between Russia and Ukraine, the worldwide inflation rate has increased, which has led to an increase in the price of oil and food. “This made it difficult for not only those with low incomes but for those with middle incomes to afford necessities. “Nigeria’s dependence on these countries for agricultural commodities such as grains and wheat for direct consumption and industrial commodity production has had a significant effect on food prices. “Due to the invasion of the Ukraine, the country’s imports are inadequate to meet the expanding demand for daily consumption products, as Nigeria, along with other African nations, historically relied on wheat imports from the Ukraine.”
