Despite Nigeria’s inflation rate showing a marginal decline, the Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government not to lose focus in addressing the deep-rooted structural issues fueling the country’s economic instability.
Reacting to the May inflation figure released by the National Bureau of Statistics (NBS)—which dropped to 22.97% from 23.71% in April—LCCI Director-General, Dr. Chinyere Almona, described the development as a “positive but modest” shift after months of inflationary pressure. She attributed the slight drop to the Central Bank of Nigeria’s monetary tightening policies, including interest rate hikes and liquidity controls.
However, Dr. Almona cautioned that the improvement is fragile, warning that persistent structural risks could reverse the gains if not urgently addressed. She cited farmer-herder clashes in the Middle Belt, severe flooding, and global supply chain disruptions as threats to food security and price stability.
“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,” Almona said.
To ensure long-term relief, the LCCI chief called on the government to act decisively by improving security, investing in agricultural infrastructure, and implementing coordinated fiscal and monetary policies. She also advocated for reforms in the oil and gas sector, sustaining the naira-for-crude exchange, and continued supply of crude to local refineries.
In addition, she stressed the importance of maintaining prudent monetary policy while boosting credit access to agriculture and manufacturing. The LCCI further advised against reviving the government’s “ways and means” borrowing from the Central Bank, which she warned could stoke inflation again.
Dr. Almona concluded by urging the government to support dry season farming, expand irrigation infrastructure, and mechanise agriculture to reduce overreliance on rain-fed farming. Improving rural-urban food logistics, she said, would cut market prices and post-harvest losses, supporting broader economic stability.
