The Lagos Chamber of Commerce and Industry (LCCI) on Tuesday said that the federal government should reopen the land borders to give succour to food prices due to lower domestic food supply amid huge demands.
This formed part of the submission on the state of the economy by the President of the Chamber, Mrs. Toki Mabogunje in Lagos on Tuesday.
The Chamber expressed concern over the recent incidents of flooding in key food-producing states in the North, lamenting that the occurrence has wiped off food and cash crops and as well as disrupted output projections in agriculture.
Mabogunje referenced local media reports that over 2 million tonnes of rice were lost to flood while other crops such as sorghum, corn and millet were also affected.
The situation, according to her, if not addressed and managed, would escalate the pressure on food prices, thereby putting the country on the verge of a food crisis.
According to statistics, inflation rose by 13.2 per cent year-on-year in August 2020, its highest level since April 2018 while on a monthly basis, consumer prices accelerated by 1.3% in August 2020 compared to 1.25% in July.
She however noted that the persistent pressure on consumer prices stem largely from the sustained uptrend in food inflation.
“Rising inflation trajectory has serious implications for businesses regarding production cost, investment real return rate, and overall economic performance. The major drivers of inflation are structural factors, which are beyond the purview and control of monetary authorities.”
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