The steady increase in the overall price level over recent years has weakened purchasing power, according to a warning from the Lagos Chamber of Business and Industry.
In a statement issued by the chamber and signed by its Director-General, Chinyere Almona, it was claimed that the rising inflation had made Nigerians’ predicament worse, particularly at a time when multidimensional poverty had reached record levels, with 133 million people in Nigeria living in poverty.
According to the LCCI, the supply side should also be vigorously investigated while the monetary authority keeps raising rates to combat inflation.
It stated that further monetary and fiscal tools have to be used equally to control inflation.
Part of the statement read, “The recent sustained increase in the general price level has resulted in some deterioration in purchasing power. This is happening at a time when multifaceted poverty has reached historic levels, with 133 million Nigerians living in poverty (NBS).
“Rising inflation has a significant influence. It distorts fixed interest rate payments for both payers and receivers, causing economic upheavals in its wake.
The statement continued by advising the CBN to assess the scope of its financial financing of the Federal Government through various channels.
The National Bureau of Statistics reports that after edging up a few basis points in the month of December 2022, headline inflation increased by 0.47 percent to 21.83 percent in January 2023.