Inflation deepening crises affecting SMEs – ACCI

The Abuja Chamber of Commerce and Industry (ACCI) has advised the federal government to address fundamental causes of rising inflation rates by making a positive business climate a reality.

In a statement on Thursday, the President of ACCI, Dr Al-Mujtaba Abubakar, said the present business climate is worsening and aggravating the challenges facing small scale businesses.

Abubakar said: “The increase can be attributed mainly to the fuel scarcity being experienced in the country, where many resolve to buy at the black market rate. Price per litre goes for between N400 and N700 naira depending on where you are buying from. This occurrence tends to have a negative effect on businesses as fuel and diesel are the major source of energy for running businesses. This invariably leads to the spike in the cost of production coupled with logistic issues that have been compounded by insecurity.”

While stating that the chamber appreciated efforts to tame the increasing inflation rate, he said the situation is far from improving.

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He therefore called for the implementation of business-friendly policies “unlike the cash swap policy that negatively affected businesses, especially the MSMEs.”

“The government should intensify the rehabilitation of refineries in the country and concession them out to private entities. The executive and legislative arms of government should speed up the passage of the bill to unbundle the transmission aspect of electricity in Nigeria as it will make the power sector deliver on their mandate to serve Nigerians efficiently.

“Again, tax harmonisation will improve the ease of doing business, make the market competitive and reduce business mortality. Government should begin to make use of satellites for surveillance by equipping the space agency to improve in addition to the equipping and retooling of our armed security force,” the ACCI president said.

He stressed that the effect of high inflation would reduce the purchasing power of the masses, making basic necessities unaffordable while worsening the unemployment rate in the country.