The Lagos Chamber of Commerce and Industry has urged the country not to lose momentum in addressing the structural drivers of inflation despite the easing of the inflation rate.

Chinyere Almona, LCCI director-general, in response to the May inflation figure of 22.97 per cent, provided advice on Tuesday in a statement in Lagos.

According to the National Bureau of Statistics, Nigeria’s headline inflation rate eased to 22.97 per cent in May, down from 23.71 per cent in April.

Ms Almona noted that the development marked a positive, albeit modest, new shift in the country’s inflation trajectory after several months of persistent increases.

She said the marginal decline may have been driven by the consistent monetary tightening by the Central Bank of Nigeria, including interest rate adjustments and liquidity control mechanisms.

The LCCI chief, however, stressed that this improvement must be viewed cautiously, considering prevailing structural risks and looming food production and distribution shocks.

“The recent spate of herdsmen-farmers clashes in the Middle Belt region and flooding disasters are negative signals capable of limiting food harvest this year.

“Logistics and supply chain risks also loom on the back of the 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 unabated 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,” Ms Almona said.

Ms Almona, therefore, urged the government to act decisively in tackling insecurity, investing in resilient agricultural infrastructure, and improving policy coordination.

This, she said, would ensure that the current progress becomes sustainable and inclusive.

She called for a coordinated mix of fiscal and monetary policy actions, such as reforms in the oil and gas sector, which had slowed down fuel price increases recorded earlier in the year.

She advised that the naira for crude and the mandated crude supply to local refineries be sustained.

The LCCI boss further advised that the CBN maintain prudent monetary policy while improving credit access to productive sectors, especially agriculture and manufacturing.

Ms Almona added that the stoppage of government ways and means provisions should be sustained irrespective of pressure.

“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.

“Government must remain focused on dealing with the challenges around food movement from the farms to the cities. Addressing inefficiencies in transporting goods, particularly food, from rural to urban markets can help lower market prices and reduce post-harvest losses,” stated Ms Almona. 

(NAN)