Address Risks To Sustain Inflation Decline, LCCI Urges Governments

The Lagos Chamber of Commerce & Industry (LCCI) has re-emphasised the need for deliberate policy actions to maintain the current easing of inflation, citing risks such as geopolitical tensions, exchange-rate volatility, and food insecurity.

The latest Consumer Price Index indicated a positive trend, with Nigeria’s headline inflation rate declining to 15.06 per cent in February 2026 from 15.10 per cent in January 2026. This decrease, especially from a notably higher rate of 26.27 per cent in February 2025, suggests a gradual easing of inflationary pressures within the economy.

The director-general of LCCI, Dr. Chinyere Almona stated that “from the perspective of the organised private sector, this slight moderation in inflation presents cautious optimism for both businesses and households. Addressing high inflation has been crucial, as it has greatly impacted purchasing power, production costs, and consumer demand across various sectors.”

She noted that “it is also essential to remain vigilant regarding potential domestic and global risks that could affect the progress made in reducing inflation. For example, rising geopolitical tensions, particularly related to conflicts in the Middle East, may lead to volatility in global energy prices, potentially driving up costs related to fuel, transportation, and logistics.

“Nigeria has the opportunity to mitigate these external pressures by investing in local refining capacities and ensuring that crude supply meets domestic needs.”

Almona added that “with the potential for exchange-rate volatility amidst global supply chain disruptions, there is a risk of increased costs for imported raw materials, machinery, pharmaceuticals, and food items.

“This could subsequently affect production and consumer prices. Other concerns, such as insecurity in agricultural regions, climate-related disruptions, and high transportation costs, could also challenge food supply and price stability.”

She pointed out that it is vital for the government to undertake deliberate policy actions to maintain the current easing of inflation, saying that “prioritizing exchange-rate stability by enhancing foreign exchange liquidity and promoting non-oil export earnings is key.

“Strengthening food security through increased agricultural productivity, addressing insecurity in farming areas, and investing in storage and logistics infrastructure will also play a critical role in moderating food prices.”

She also said, “advancing reforms in the power and energy sectors is crucial for reducing production costs. A reliable electricity supply and improved energy infrastructure can significantly alleviate cost pressures across the manufacturing, trade, and service sectors.”

She emphasized the importance of enhancing efficiency in transportation and trade infrastructure, including port operations, cargo evacuation systems, and digital trade processes, saying that such improvements can notably reduce logistics costs that contribute to consumer prices.

“While the marginal decline in inflation is a positive development, sustaining this trend will require consistent macroeconomic management, structural reforms, and policies aimed at enhancing domestic productivity.

“We must act swiftly to address concerns that may jeopardize the progress made in controlling inflation. Given that month-on-month rates already suggest ongoing inflationary challenges, supply-side interventions are likely to offer more sustainable solutions than imposing price controls on manufacturers and investors,” LCCI DG explained.