Despite a marginal easing in Nigeria’s inflation rate in May, the Lagos Chamber of Commerce and Industry (LCCI) has cautioned that significant risks remain, especially regarding food prices. The National Bureau of Statistics recorded a drop in headline inflation from 23.71% in April to 22.97% in May, a development LCCI’s Director-General Dr. Chinyere Almona described as “a positive, albeit modest, shift.”
Dr. Almona attributed the decline to the Central Bank of Nigeria’s monetary tightening policies but emphasized that structural challenges and external shocks threaten to reverse progress. She highlighted security issues such as herdsmen-farmers conflicts and flooding in the Middle Belt, which could reduce food production.
She further explained, “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.”
The LCCI urged the government to act decisively on insecurity, invest in agricultural infrastructure, and coordinate policies effectively. Dr. Almona also advocated for sustaining the naira-for-crude policy and ensuring local refineries receive mandated crude supplies. She stressed the need for the Central Bank to continue prudent monetary policy while improving credit access for agriculture and manufacturing sectors.
She concluded by emphasizing the importance of supporting dry season farming, irrigation, and mechanisation to reduce dependence on rain-fed agriculture and improve food supply logistics to urban markets.