LCCI Calls for Monetary Policy to Address Real Economic Pressures, Not Just Statistical Inflation
The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, has urged the Central Bank of Nigeria (CBN) to align its monetary policy with the real economic challenges faced by businesses and consumers. She emphasized that despite the National Bureau of Statistics’ (NBS) recalibration of the consumer price index (CPI), which led to a decline in inflation figures from 34.8% in December 2024 to 24.48% in January 2025, businesses and households continue to struggle with high costs of goods and services.
Dr. Almona pointed out that while the rebased CPI offers a more accurate representation of economic conditions, it does not provide immediate relief from inflationary pressures in practical terms. She called for concrete actions to reduce inflation and support business development, highlighting the need for inclusive economic growth that addresses the real struggles of businesses and consumers.
She also appreciated the CBN’s decision to maintain the monetary policy rate (MPR) at 27.5%, noting that high interest rates have previously hindered business growth by limiting access to affordable credit. This move, she explained, provides stability and boosts investor confidence, though she cautioned that the high borrowing costs continue to be a barrier for small and medium-sized enterprises (SMEs), which are vital for economic expansion and job creation.
In conclusion, Dr. Almona urged the government to focus on addressing the root causes of inflation, such as insecurity, energy costs, logistical challenges, and fluctuating foreign exchange rates. She stressed the importance of complementary fiscal and structural reforms to improve local production, infrastructure, and supply chains, ensuring that businesses can thrive despite ongoing economic challenges. The private sector looks forward to ongoing engagement with policymakers to foster sustainable economic growth and enhance living standards for Nigerians.
SOURCE: guardian