NACCIMA fears worsening inflation

Sola Obadimu, Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mining, and Agriculture, has stated that Nigeria’s current inflation rate poses a serious threat to the survival of businesses across the country.

Obadimu forecasted that Nigeria’s inflation rate would rise further in 2023, while the naira would depreciate further.Information Guide Nigeria

The NACCIMA DG, who spoke exclusively to The PUNCH in response to the slight decrease in headline inflation from 21.47 to 21.34 in December, said such a marginal decrease does not bode well for the productive sector of the economy.JAMB Result

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Obadimu said, “Inflation coming down from 21.47 to 21.34, for me it is not good. Even if those figures are true.

“Liz Truss, what was the principal reason why she stepped down? It was 11 per cent inflation. Anything above a single digit is not good for business.

“We always preach, if possible, single-digit inflation. That is, something that costs N100 in January, should at worst, not cost more than N110 by December. That shows some stability in the economy. Anything beyond that is injurious to business. So, 21 per cent inflation is like six and half a dozen.”

“If that is impracticable, then it should not be more than 15 per cent, at worst. A lot of work still needs to be done to bring down inflation. Prices should be predictable for planning and budgeting purposes. It has been a very uncertain scenario, given the fact that we have been told that a point in the year fuel subsidy will be removed, which will definitely have an impact on the naira. Inflation will worsen this year. Naira will further weaken.”NYSC portal

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