The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture has said insecurity crisis in the country has significantly affected farming activities and drastically reduced ability to locally produce raw materials for manufacturing purposes.
The association also said Nigeria’s inflationary statistics might be incorrectly underestimated considering the primary research on the price of essential foods, transportation and household goods.
According to a statement by the association, the increase in inflation could be linked to several factors, including the high cost of raw materials, devaluation and the disruption of the supply chain caused by insecurity among others.
The statement said the persistent insecurity in the nation had continued to impede agricultural activities and deterred investments in agriculture in the nation’s food-producing regions, resulting in a decline in agricultural output.
Consequently, NACCIMA said the entire agricultural value chain had been disrupted due to the restrictions imposed by insecurity.
It stated that it wass conceived that the primary cause of inflation, particularly food inflation, was endogenous.
The statement said most farmers and those earning a living within the value chain had been left unemployed, worsening the spiralling unemployment rate in the country.
According to NACCIMA, Nigeria was currently suffering stagflation as opposed to the widely reported inflation.