LCCI: Supply Crude to Refineries to Shield Nigeria from Oil Price Swings

The Lagos Chamber of Commerce and Industry (LCCI) argues that Nigeria can insulate itself from volatile global oil prices by increasing crude oil supplies to local refineries.

This strategy would boost local refining capacity, ensure steady domestic fuel production, and minimise sharp adjustments in petroleum product pump prices. LCCI’s position contrasts with some stakeholders who downplay the impact of expanded crude supplies on retail fuel costs.

The LCCI warned that Nigeria’s slight inflation progress is at risk from domestic and global pressures. Headline inflation fell marginally to 15.06 per cent in February 2026 from 15.10 per cent in January.

However, month-on-month inflation rose to 2.01per cent after contracting the prior month, signaling ongoing price pressures.

Food inflation drives most of the increase, fueled by structural supply chain problems, high logistics expenses, and farming constraints like insecurity and climate disruptions.

In its statement “Consolidating on Inflation Moderation in the Face of New Threats,” LCCI director general Dr Chinyere Almona pointed to escalating geopolitical risks.

Tensions from the Iran conflict in the Middle East threaten global energy markets, which could drive up fuel, transport, and logistics costs for Nigeria.

She added that exchange rate swings, amid global supply chain issues, would raise prices for imported raw materials, machinery, drugs, and food—hitting producers and consumers hard.

Almona stressed the human cost: High inflation has eroded household purchasing power, spiked business production costs, and weakened demand in manufacturing, trade, and services.

Insecurity in food-producing regions, weather-related farm losses, and steep transport fees continue to destabilize food supplies and prices.

The LCCI called for targeted government steps to lock in inflation gains including:

Exchange rate stability: Boost forex liquidity and non-oil exports to ease import costs.

Food security: Ramp up agricultural productivity, secure farming communities, and invest in storage, cold chains, and logistics infrastructure and

Energy reforms: Accelerate power sector fixes for reliable electricity, cutting energy bills for factories, shops, and services.

Transport efficiency: Modernise ports, improve cargo handling, and digitize trade to slash logistics costs passed to consumers.

The chamber rejects price controls on manufacturers, favoring supply-side interventions instead.

Dr. Almona noted the early 2026 month-on-month trends show inflation’s fragile hold—urgent action is needed to prevent reversal through better macroeconomic management and productivity-boosting reforms.