The Lagos Chamber of Commerce and Industry (LCCI) Tuesday welcomed the latest report from the National Bureau of Statistics (NBS) which showed that Nigeria’s headline inflation rate eased to 22.97% in May 2025, down from 23.71% in April 2025.
“This marks a positive, albeit modest, new shift in the country’s inflation trajectory after several months of persistent increases,” Dr Chinyere Almona, Director General of LCCI, said in a statement on Tuesday.
According to LCCI, the marginal decline may have been driven by the consistent monetary tightening by the Central Bank of Nigeria (CBN), including interest rate adjustments and liquidity control mechanisms.
The body, however, said the improvement must be viewed cautiously, considering prevailing structural risks and looming food production and distribution shocks.
The LCCI said the Nigerian government must not lose momentum in addressing the structural drivers of inflation.
Almona pointed out that 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.”
She said 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.
She said importing fuel and other products may become more expensive as oil prices have risen due to unabating tensions and trade wars.
“These shocks pose significant risks to food availability and prices, which could drive food inflation — an essential component of the headline inflation index — in the third and fourth quarters of 2025,” she said.
LCCI recommended a coordinated mix of fiscal and monetary policy actions, including that reforms in the oil and gas sector have slowed down fuel price increases recorded earlier in the year.
The body said the CBN should maintain prudent monetary policy while improving credit access to productive sectors, especially agriculture and manufacturing, to stimulate supply-side responses to inflation.
“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 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.
“Government spending should prioritise critical sectors with high inflation pass-through, such as food, energy, and transport, while eliminating leakages and enhancing social safety nets for vulnerable households,” the body said.
The LCCI further urged the government to act decisively in tackling insecurity, investing in resilient agricultural infrastructure, and improving policy coordination to ensure the current progress becomes sustainable and inclusive.
