How FG Can Tackle Inflation -Former LCCI DG, Muda Yusuf

How FG Can Tackle Inflation -Former LCCI DG, Muda Yusuf

Former Director-General (DG) of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf has revealed that the most effective way for the Federal Government (FG) to tackle Nigeria’s alarming inflation, is a suspension of tax and levies on importation of petroleum products to curb inflation.

In a statement in which he made this known, Yusuf lamented how companies are struggling to stay above waters in the midst of rising energy and fuel costs as well as rising inflation.

BizWatch Nigeria had reported that Inflation, a measurement of how fast prices of goods and services, which had slowed to 15.6% in January 2022 had picked up vigour in February to 15.7% as analysts say they expect inflation to soar even higher in March due to the higher cost of fuel, dripping down on other prices.

Revealing what the government can do to tackle the inflation challenge, Yusuf stated that “all forms of taxes and levies on the importation of petroleum products should be suspended to give a respite on the spiking energy cost. There should also be deeper stakeholder engagements across sectors to develop an enduring strategy on the way forward.”

Noting that the technical computation of the inflation figures of the National Bureau of Statistics (NBS) is not in dispute, he said the reality and severity of the impact of the intense inflationary pressures over the past year are at variance with the official inflation data.

“For the basket of goods consumed by most households, prices have jumped by between 30-100% over the past one year. The same is true of businesses. The pressure of spiking inflation on household budgets has been excruciating and unbearable. Purchasing power has been massively eroded, real incomes have depressed, and the poverty situation has consequently worsened.

“Businesses have been similarly impacted as they have been experiencing a slump in sales, turnover and profits margins. The impact on small businesses is even more severe because of their limited capacity to absorb economic shocks, “he added.

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