NACCIMA Charges FG on Deliberate Economic Policies to Stabilise Exchange Rate, Tackle Inflation

Eromosele Abiodun

National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye, has called on the federal government to put policies place to tackle exchange rate volatility and inflation that is spiraling out of control.

He noted that the current exchange rate exerts inflationary pressure on input costs, thereby affecting overall food prices, reiterating the need for a robust economic policy aimed at stabilizing the Naira.

In a statement, the NACCIMA boss said a stable currency will not only make agricultural inputs more affordable but will also bolster consumer purchasing power.

Oye, however, commended the recent resolutions by President Bola Ahmed Tinubu and State Governors to prioritize and boost local food production as a strategy to achieve food security in the Country and improve the lives of the people.

According to him, “On behalf of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), I write to express our support for the recent resolutions by President Tinubu and state governors to prioritize and boost local food production as a strategy to achieve greater food security in Nigeria.

“We commend the President’s directive to state and federal government agencies to enhance collaboration in bolstering local food production rather than resorting to food importation and price control. This approach aligns with NACCIMA’s core objectives of championing the agricultural value chain and supporting local producers. It is a vital step toward self-sufficiency and economic resilience.

“However, we believe that the issue of rising food costs is multifaceted. While local production capacity is a critical factor, we cannot overlook the significant impact of the depreciating value of the Naira. The current exchange rate exerts inflationary pressure on input costs, thereby affecting overall food prices.”

“To counter this, a robust economic policy aimed at defending the Naira to reach an acceptable exchange rate of 750 Naira to one USD is essential. A stable currency will not only make agricultural inputs more affordable but will also bolster consumer purchasing power,” he added.

Oye further noted, “To further incentivize local production, we urge the government to facilitate access to more single-digit interest loans and grants for our farmers. This financial support is pivotal in empowering farmers to scale up production and adopt modern agricultural practices.

“Additionally, we appeal for the enhancement of security and infrastructure in farming communities. These measures will mitigate the risks faced by farmers, reduce production bottlenecks, and increase efficiency throughout the agricultural value chain.

“We concur with the President’s call for vigilance against hoarding practices that exploit consumers and distort market dynamics. NACCIMA advocates for fair trade practices that encourage competitive pricing without compromising the welfare of our local producers and consumers.”

On livestock development, the NACCIMA boss stated, “We encourage state governments to take proactive steps in increasing poultry and fishery production. This diversification will not only enrich the Nigerian diet but also create numerous employment opportunities within these sub-sectors.

“NACCIMA remains steadfast in our commitment to fostering a thriving agricultural sector. We caution against the importation of food items that can be locally produced, as this undermines our collective efforts to develop the sector, increases unemployment, and transfers economic benefits to foreign economies.”

“We stand ready to collaborate with the government through NACCIMA 71 City Chambers of Commerce nationwide, in implementing these recommendations. Together, we can achieve a robust agricultural sector that ensures food security, price stability, and sustainable economic growth for Nigeria,” he reassured.