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Russia-Ukraine war: Prices of products will soon rise, LCCI warns Nigerians

The Lagos Chamber of Commerce and Industry has warned Nigerians to brace for an imminent increase in the prices of products in the wake of the energy crisis occasioned by the Russia-Ukraine war.

According to a statement by the chamber, the immediate implication of the price of diesel at above N600 per litre, is the increase in the cost of production and logistics which can translate to higher prices of products.

The statement also added that Nigeria’s headline inflation, which stands at 15.60 per cent, would invariably increase in the succeeding months by implication of the economic realities that will trail the energy crisis.

The statement reads in part, ”We should expect a rise in inflation above the 15.60% as of January. The rate of 13 per cent assumed for the MTEF 2022 to 2024 is threatened in the short-term and except the right interventions apply, we may miss this target even in the medium term.”

According to the statement, the supply chain disruption arising from the Russia/Ukraine crisis is expected to put more inflationary pressures on the system to cause an uptick in the inflation rate into the second quarter of 2022.

“Government needs to focus on resolving the supply-side challenges that are pushing prices upward. We have issues like exchange rate pressures due to a weakening Naira, insecurity in production bases, high cost of logistics due to rising energy costs,” the statement added.

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