The Lagos Chamber of Commerce and Industry (LCCI) has advised the Federal Government not to lose momentum in tackling the root causes of inflation, despite Nigeria’s headline inflation rate easing to 22.97% in May 2025, down from 23.71% in April, according to the National Bureau of Statistics (NBS).
Reacting to the latest inflation figures on Tuesday, the Director-General of the LCCI, Dr Chinyere Almona, described the marginal decline as a positive signal, but warned that the improvement must be treated with caution given the persistence of structural economic risks.
Dr Almona attributed the modest relief to consistent monetary tightening measures by the Central Bank of Nigeria (CBN), including interest rate hikes and efforts to manage liquidity in the economy.
“This development marks a modest shift after months of rising inflation. However, inflationary pressure could return if we fail to address underlying risks, particularly in the food and energy sectors,” she stated.
Highlighting major threats to sustained price stability, the LCCI boss warned of ongoing insecurity, particularly herdsmen-farmer conflicts in the Middle Belt and recent flooding incidents that could severely impact agricultural output.
She also pointed to external shocks such as rising global oil prices, Middle East tensions, and the Russia-Ukraine war, all of which pose risks to fuel imports and overall supply chain stability.
“These shocks could spike food and fuel prices, thereby reversing the gains in inflation reduction,” Dr Almona cautioned.
To mitigate these threats, Dr Almona called for a coordinated mix of fiscal and monetary policies, with particular attention to agricultural resilience, energy reforms, and supply chain improvements.
Key recommendations from the LCCI include: Increased government investment in dry season farming, irrigation systems, and mechanised agriculture.
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Prioritisation of rural-urban road and transport infrastructure to reduce post-harvest losses and food prices.
Sustained implementation of the naira-for-crude policy and mandatory crude supply to local refineries to stabilise fuel prices.
Maintaining CBN’s prudent monetary stance, while expanding access to credit for agriculture and manufacturing sectors.
Continuing the halt on Ways and Means financing to curb excess liquidity and inflationary pressures.
“The government must act decisively. Inflation is not just a number—it affects real livelihoods. Sustainable policies are needed to ensure inclusive economic stability,” she added.
With food inflation expected to dominate the inflation index in the second half of 2025, the LCCI warned that failure to address domestic and global supply disruptions could trigger a rebound in inflation.
The business group urged federal authorities to double down on reform efforts, improve policy coordination, and restore investor confidence in key sectors to protect the economy from future inflationary shocks.
