The Chief Executive, Centre for Promotion Of Private Enterprise (CPPE) and former Director General of the Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf has called for a suspension of tax and levies on importation of petroleum products to curb inflation.
Yusuf in a statement said companies are struggling to stay above waters in the midst of rising energy and fuel costs as well as a rising inflation.
Manufacturers as well as other operators in the Nigerian economy has been lamenting the soaring price of diesel which has jumped from around N250 to more than N750 per litre amidst the lack of electricity supply in the country.
Inflation, a measurement of how fast prices of goods and services, which had slowed to 15.6 per cent in January this year had picked up vigour in February to 15.7 per cent as analysts say they expect inflation to soar even higher in March due to the higher cost of fuel, dripping down on other prices.
Commenting on the recently released inflation figures, Yusuf said: “To tackle inflation, these key drivers would have to be addressed. 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 the NBS is not in dispute, he said the reality and severity of the impact of the intense inflationary pressures over the past one year is at variance with the official inflation data.
“For the basket of goods consumed by most households, prices have jumped by between 30-100 per cent 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.
