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

The Director-General of the LCCI, Dr. Chinyere Almona, made this call on Tuesday in Lagos, responding to the May inflation figure of 22.97 per cent.

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

Dr. Almona noted that this development marks a positive, albeit modest, shift in the country’s inflation trajectory after several months of persistent increases. She attributed the marginal decline to consistent monetary tightening by the Central Bank of Nigeria (CBN), including interest rate adjustments and liquidity control measures.

However, the LCCI Director-General stressed that this improvement should be viewed with caution, given ongoing structural risks and looming shocks to food production and distribution.

She warned, “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 therefore urged the government to act decisively in tackling insecurity, investing in resilient agricultural infrastructure, and improving policy coordination to ensure that current progress becomes sustainable and inclusive. She called for a coordinated mix of fiscal and monetary policy actions, including reforms in the oil and gas sector, which had previously slowed fuel price increases.

She also advised that the naira-for-crude policy and mandated crude supply to local refineries be sustained. The LCCI Director-General further recommended that the CBN maintain prudent monetary policy while improving credit access to productive sectors, especially agriculture and manufacturing. She added that the cessation of government ways and means provisions should be maintained, regardless 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. 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. (NAN)