Inflation: NACCIMA Seeks Adoption Of Naira Strengthening Mechanisms

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has urged the country's monetary authorities to implement policies to strengthen the naira and reduce inflationary pressures on its citizens.

Olusola Obadimu, NACCIMA Director-General, gave the advice in an interview with the News Agency of Nigeria (NAN) on Friday in Lagos, in reaction to the August inflation rate of 20.52 per cent.

According to the National Bureau of Statistics (NBS), inflation could be attributed to increasing in import costs due to the persistent currency depreciation and a general increase in the cost of production.

Obadimu stated that the  printing of the naaira by monetary authorities would instead of ensuring the flow of disposable income, lead to inflation tax seeing that the value of the currency was weak compared to its foreign counterparts.

“Consumption without exports means that the Naira cannot be strong because you must earn foreign exchange to strengthen the Naira.

“Even if you manufacture anything, you are not sure of its safety when transporting the goods.

"Also, the cost of power, inadequate infrastructure, and insecurity have all contributed to inflation.

“Until these factors of insecurity, infrastructure and power deficiencies are fixed, there is no end to its inflation in sight.

“There must be something to suggest that our monetary policy managers have any clue on what to do to bring inflation down.

“Government must begin to discipline its expenses, reduce borrowing, and look beyond short-termed but short-terminal policies to engender economic growth,” he said.