The President, Abuja Chamber of Commerce and Industry (ACCI), Emeka Obegolu, on Saturday, lamented the persistent surge in the price of food commodities across the country. Obegulu in a statement said the situation, if unaddressed, would cripple small-scale businesses, which are struggling to adjust to various economic reforms by the Bola Tinubu-led administration.
National Bureau of Statistics (NBS) had announced through its Consumer Price Index (CPI) report that food inflation rose to 40.66 per cent with the country’s headline inflation rate sitting at 33.95 per cent in May 2024. Speaking on the persistent hike, Obegulu said, “The Abuja Chamber of Commerce and Industry expresses deep concern over the persistent rise in commodity prices, which is adversely affecting small-scale business owners and escalating poverty levels in the country.
“The surge in prices of essential food items such as rice, beans, cassava flour, tomatoes, pepper, onions, and others has aggravated the plight of the average citizen, rendering basic meals increasingly unaffordable for many households.”
ACCI boss does not agree with NBS on the quoted inflation rate. According to Obegolu, the rate of inflation is higher than what the body has given, if the practical experience of Nigerians was to be considered. He said, “However, on-ground observations suggest that the true food inflation rate exceeds 50 per cent, highlighting the severity of the situation and its dire impact on livelihoods. Experts attribute this economic hardship to the drastic depreciation of the national currency, the naira, which has significantly eroded citizens’ purchasing power.”
Obegolu, therefore, lamented that “The resulting exchange rate volatility has disrupted businesses, increased production costs, and thwarted projections for economic growth”. Speaking on controlling and corrective measures to be implemented, Obegolu emphasised the urgent need for government intervention to address the escalating food crisis, warning that failure to act promptly could lead to future health and state crises.
While stating that “Food is a fundamental necessity of life, and its affordability directly impacts the well-being of citizens. The escalating food inflation crisis poses a severe threat to food security and exacerbates poverty levels”, Obegolu admonished the government to “take decisive action to mitigate this crisis and alleviate the suffering of the populace.”