The Lagos Chamber of Commerce and Industry (LCCI) has expressed cautious optimism about the general prices level in the country following the release of the Consumer Price Index for May 2025 report by the National Bureau of Statistics (NBS).
The latest data showed that Nigeria’s headline inflation rate eased to 22.97% in the month under review, from 23.71% rate recorded in April this year.
Commenting on the CPI report, Director-General of the LCCI, Dr. Chinyere Almona, described the decline as a positive signal that reflected that the Central Bank of Nigeria’s (CBN’s) sustained monetary policy measures to moderate the inflation were achieving the desired results.
However, she warned that the progress remains fragile due to persistent structural and global challenges.
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The Director-General said: “We welcome the modest decline in inflation, which signals the impact of the CBN’s consistent monetary tightening. However, this improvement is fragile, and we must address the underlying risks to maintain this trajectory.”
The Chamber identified several domestic threats that could reverse recent gains as including ongoing herdsmen-farmers conflicts in the Middle Belt and recent flooding, both of which are currently threatening farming activities and food production.
According to the organized private sector (OPS) advocacy group, these disruptions, if not addressed, could lead to a spike in food inflation—a major driver of the overall inflation index—during the third and fourth quarters of the year.
On the international front, the LCCI’s boss pointed to escalating tensions in the Middle East and stalled ceasefire negotiations between Russia and Ukraine as factors pushing up global oil prices, noting that the ugly developments are increasing costs for imported fuel and goods, compounding inflationary pressures.
She cautioned: “These external shocks pose significant risks to food availability and prices.”
To protect the nation’s economy from further inflationary pressures, Almona called for a coordinated policy response.
While commending the government on current reforms in the oil and gas sector, particularly the Naira-for-crude initiative and the mandate for local refineries to receive crude supplies which, she said, have helped to stabilise domestic fuel prices, she advised the CBN to sustain its prudent monetary stance while also improving credit access for agriculture and manufacturing sectors to boost domestic production and ease inflationary pressures.
Almona also stressed the need for government to strengthen Nigeria’s agricultural resilience by scaling up “support for dry season farming, irrigation infrastructure, and mechanisation to reduce our dependence on rain-fed agriculture, which is increasingly vulnerable to climate shocks.”
In addition, she advocated improved investment in food transportation networks to improve efficiency in moving goods from rural farms to urban markets, and by so doing, help lower food prices and minimise post-harvest losses.
The LCCI’s boss also advised on the need for increased government spending in critical sectors such as food, energy, and transport, as well as stronger social safety nets for vulnerable Nigerians.
This is even as she maintained that “tackling insecurity and enhancing fiscal-monetary coordination are critical to ensuring sustainable, inclusive growth.”
