Stabilise food prices, LCCI urges FG

POLICY advocacy group, the Lagos Chamber of Commerce and Industry (LCCI), has urged the federal government to come up with measures aimed at stabilising food prices for it to successfully curb inflation.

Making this call in Lagos, recently,  the President of the Chamber, Mr. Babatunde Ruwase stated that the federal government needed to show more commitment in fighting inflation  by improving food production,  post-harvest management and transportation so as to reduce volatility in food prices.

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While attributing the  rise recorded in consumer prices in May, this year to faster growth of food prices, the LCCI boss therefore advised the federal government on the need  to come up with strategies that would stabilise food prices in the country.

“Consumer prices rose 1.11% on a month-on-month basis in May, up from April’s 0.94% increase. This increase was reported by NBS to be largely caused by faster growth of food prices. We therefore advise that the government show more commitment in measures aimed at stabilising food prices through improved food production, improved post-harvest management and transportation to reduce the volatility in food prices,” he stated.

Ruwase also queried the drop in the budgetary allocation to the agricultural sector from 2.23% in 2018 to 1.56% in 2019, arguing that such action is not in tune with the government’s commitment to improving the country’s food situation.

While  commending the desire of the federal government, through the Central Bank of Nigeria (CBN), to boost consumer spending through a lending framework that will involve large departmental stores, equipment leasing companies, automobile companies in partnership with financial institutions and credit bureaus.