The National Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA) has raised alarm over the rising inflation in Nigeria, which hit 20.52 percent in August 2022 from 19.64 percent the previous month as reported by National Bureau of Statistics (NBS).

It also urged the government to review its current policies to help mitigate the present economic crisis, thereby ending the struggle of most Nigerian businesses and the rising poverty rate among the population.

In a statement issue by the President, Ide John Chinyelu Udeagbala, NACCIMA lamented that the newly recorded figure exceeded market expectations of 20.25 percent, making it the highest figure recorded in the country since September 2005.

It described the inflation rate as unbelievable, stressing, “We believe that Nigeria is currently suffering Stagflation rather than Inflation.

“According to the year-over-year percentage change in inflation in Nigeria, the Nigerian economy has shifted significantly into a walking inflation. That is, the country’s economy is too swift for individuals and businesses to sustain.”

It therefore urged the government to develop and implement policies targeted at increasing food supply and decreasing enterprises’ production costs.

It however advised the government to encourage local production and ensure that adequate infrastructure were put in place to meet the country’s needs and strengthen the food supply chain.

“This will also encourage the private sector and attract Foreign Direct Investment (FDI), thereby positively impact the Gross Domestic Product (GDP). Nigeria can increase its output if the nation’s production problems are addressed in the interest of inclusive economic growth and development.

“In addition, we urge governments at all levels to promptly utilize all available resources to fill the gap in wheat imports, as well as to make a longer-term commitment to minimize imports by providing both financial and technical supports for the wheat production value chain,” it stated.

On the development of wheat production in the country, NACCIMA advised the government to involve the appropriate agricultural industry stakeholders, including research institutes.

Besides, it pointed out that the country must address the insecurity that has impeded agricultural production.

“As we approach the wheat planting season (November and December), we expect the government to give local wheat production the deserved priority.

Given the non-liberated and relatively high prices of diesel, we hope that the government would soon revitalize the Nigerian electricity assets to reduce industries’ heavy reliance on diesel for production,” it stated