The Lagos Chamber of Commerce and Industry (LCCI) has urged Nigeria to maintain focus on addressing the underlying causes of inflation, even as the headline inflation rate showed a slight decline in May. Dr. Chinyere Almona, LCCI Director-General, spoke on Tuesday in Lagos after the National Bureau of Statistics reported a decrease in inflation from 23.71% in April to 22.97% in May.
Dr. Almona described this as a positive but modest shift, crediting the Central Bank of Nigeria’s monetary tightening measures, including interest rate hikes and liquidity controls, for the improvement. However, she warned against complacency, highlighting ongoing structural risks and potential shocks to food production and distribution.
She stated, “The recent spate of herdsmen-farmers clashes in the Middle Belt and flooding disasters are negative signals capable of limiting food harvests this year. Logistics and supply chain risks also loom due to current escalations in the Middle East and the deadlocked ceasefire talks between Russia and Ukraine. Importing fuel and other products may become more expensive as oil prices have risen due to ongoing tensions and trade wars. These shocks pose significant risks to food availability and prices, which can drive food inflation—an essential component of the headline inflation index in the third and fourth quarters of 2025.”
Dr. Almona called on the government to take decisive action to tackle insecurity, invest in resilient agricultural infrastructure, and improve policy coordination. She recommended a coordinated mix of fiscal and monetary policies, including reforms in the oil and gas sector, continuation of the naira-for-crude policy, and mandated crude supply to local refineries. She also urged the Central Bank to maintain prudent monetary policy while enhancing credit access to productive sectors like agriculture and manufacturing.
“There is an urgent need for the government to scale up support for dry season farming, irrigation infrastructure, and mechanisation to reduce Nigeria’s dependence on rain-fed agriculture. The government must remain focused on addressing challenges related to the movement of food from farms to cities. Addressing inefficiencies in transporting goods, particularly food, from rural to urban markets can help lower market prices and reduce post-harvest losses,” she concluded.
