Lagos, Feb. 16, 2024: The Lagos Chamber of Commerce and Industry (LCCI) has lauded the Federal Government’s intention towards establishing a National Commodity Board to regulate the rising food prices in Nigeria.
Director General, (LCCI) Dr Chinyere Almona, on Thursday in Lagos, said the plan had the potential of bringing stability in food prices by continually assessing and regulating them.
The Vice President Kashim Shettima had on Tuesday announced the Federal Government’s plan to set up the National Commodity Board.
According to him, the board will be saddle with the mandate of assesing and regulating food prices, as well as maintaining strategic food reserves to stabilise prices of grains and other food items.
Almona stated that the initiative came at a critical juncture when the rising cost of food have become an issue of concern to both the government and citizens, with inflation in the prices of foodstuffs reaching an alarming level.
She said the chamber viewed the initiative as government’s commitment to implementing effective short-term strategies to counteract subsidy removal and ensure immediate food supply.
“This could alleviate the burden on consumers and enhance overall economic predictability”
“Creating strategic food reserve for stabilising prices of crucial grains and other food items is a positive step toward ensuring food security and mitigating the impact of supply chain disruptions,” she said.
The LCCI Director General, however, noted that while the price regulation may address immediate concerns, there was the risk of market distortion if not implemented carefully.
She said over-regulation may discourage private sector participation and hinder market dynamics which was against business community growth.
Almona added that the plan may largely involve complex logistics that would require robust systems and processes to ensure the board’s effectiveness without bureaucratic bottlenecks.
She stated that in view of the development, the LCCI was willing to offer its insights and recommendations on the best strategies the to be adopted for the successful implementation of the board.
She emphasised the importance of a comprehensive approach that combines short-term interventions with medium-term strategies to ensure sustained and effective results.
“The Chamber recommends among other things that the distribution of fertilisers and grains to farmers and households should be prioritised to counteract the immediate effects of subsidy removal on food prices.
“It is important to foster collaboration between the ministries of agriculture and water resources to ensure efficient farmland irrigation, promote year-round food production, and reduce dependence on seasonal variations.
“The youth must be actively engaged by making agriculture an attractive and viable option. This can be achieved by creating 5 to 10 million jobs within the agriculture value chain, aligning with the government’s commitment to job creation.
“It is also imperative that the private sector, including farmers and other stakeholders, is actively involved in the decision-making processes and implementation of the commodity board to ensure inclusivity and effectiveness.
“The LCCI stands ready to collaborate with the government in implementing these strategies to achieve the shared goal of ensuring food security and stabilizing prices for the benefit of all Nigerians,” she said.
