LCCI calls for improved security as food inflation hits record high

The Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government and other security related agencies to take prompt actions in addressing issues around insecurity especially in the Northern and middle belt region which are major food producing regions in order to curb the fast-rising uptick of food prices and also avert the possibility of a looming food scarcity going forward.

The LCCI stated this in a press statement signed by Muda Yusuf, director-general of the chamber, while reacting to the recently released headline inflation figures which accelerated to 16.47 percent in January 2021, driven majorly by the food inflation figure which grew to 20.57 percent, the highest since 2009.

The recent headline inflation figure also marked the 17th- consecutive upward movement since September 2019 following the border closure exercise and the highest in 34 months according to data from the National Bureau of Statistics (NBS).

“The uptick in domestic prices was largely driven by the persistent food inflationary pressures, The major factors responsible for the uptick in headline inflation are basically supply-side issues which include the heightened insecurity around the country, but more pronounced in Northern and Middle-belt region which are the major food-producing regions in Nigeria, weak productivity in the agriculture sector and increased cost of agricultural inputs” the statement read.

Consequentially the LCCI noted that the upward movement of inflation figures and food prices if unattended to could worsen Nigeria’s poverty situation, thereby pushing more Nigerians below the poverty line and also the production cost of manufacturing firms leaving an adverse impact on their revenue.

“Rising food prices would see most low and middle-income households spend more on food commodities, with little amount to save or invest. The persistent rise in food prices, if unresolved, would worsen Nigeria’s poverty situation, thereby pushing more Nigerians below the poverty line” LCCI noted.