Insecurity, high fuel cost, forex challenges driving inflation – LCCI

President, Lagos Chamber of Commerce and Industry, Toki Mabogunje

The Lagos Chamber of Commerce and Industry has urged the government to make deliberate efforts towards making the business environment conducive for MSMEs and large corporations.

LCCI president, Mrs Toki Mabogunje, at a quarterly press briefing in Lagos on Tuesday, acknowledged government’s efforts in assisting businesses to recover from the COVID-19 pandemic but added more could still be done.

Mabogunje said insecurity, high fuel cost and forex liquidity were the drivers of inflation in the economy, all of which had reduced investors’ confidence, despite stronger oil prices and exit from recession.

She said, “Insecurity in the northern and middle belt of the country and its impact on agriculture activities, high cost of logistics on the back of domestic  energy prices, and cost of  agricultural inputs, lingering   liquidity concern in the foreign exchange market and the pass-through effect of exchange rate on imported raw materials and finished items have allowed for inflation to remain elevated  has created serious implications for various economic agents including households, businesses, and investors.”

She added the right policy and regulatory framework were required to create an enabling investment environment for the advancement of the Nigerian economy and the good of all investors and economic players.

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