The Lagos Chamber of Commerce and Industry has warned the Federal Government that the rising cost of food has reached an alarming level.
In a statement signed by its Director-General, Chinyere Almona, the chamber said that the rising cost of food is a critical issue that requires immediate attention and sustained effort.
It also acknowledged the recent announcement regarding the Federal Government’s intention to establish a National Commodity Board aimed at regulating the rising food prices in Nigeria.
The chamber said the initiative was coming at a critical juncture when the rising cost of food had become a pressing concern for both the government and citizens.
According to the LCCI, the proposed commodity board has the potential to bring stability to food prices by continually assessing and regulating them.
The statement read in part, “The Lagos Chamber of Commerce and Industry acknowledges the recent announcement regarding the Federal Government’s intention to establish a National Commodity Board aimed at regulating the rising food prices in Nigeria.
“This initiative comes at a critical juncture when the rising cost of food has become a pressing concern for both the government and citizens, where food inflation has reached an alarming level, as highlighted by the National Bureau of Statistics data, placing Nigeria’s food inflation at 33.9 per cent as of January 15, 2024.”
The chamber, however, observed that while the price regulation may address immediate concerns, but there was a risk of market distortion if not implemented carefully.
It warned that over-regulation may discourage private sector participation and hinder market dynamics, which is against business community growth.
It added, “More so, this plan may largely involve complex logistics that will require robust systems and processes to ensure the board’s effectiveness without bureaucratic bottlenecks.
Considering that development, the LCCI offered insights and recommendations on the best strategies the Federal Government should adopt for the successful implementation of the National Commodity Board.
In its recommendation, the LCCI urged the government to consider measures such as the distribution of fertilisers and grains to farmers, collaboration between the Ministries of Agriculture and Water Resources to ensure efficient farmland irrigation, among others.
In recent months, the rising cost of food items has constituted a hot-button topic in Africa’s largest economy, as food inflation hit 35.41 per cent in January.
The African Development Bank warned that the rising cost of energy, food and other commodities in several African countries, including Nigeria, could trigger social unrest among the citizenry.
