LCCI Urges FX Stability, Energy Reforms As Inflation Continues To Bite Businesses

Despite a decline from 26.82 per cent a year ago, Lagos Chamber of Commerce and Industry (LCCI) said inflation remains a heavy burden on manufacturers, MSMEs, and consumers due to elevated costs of food, transport, and energy.

The Chamber called on government to stabilize the forex market, cut logistics and energy costs, and strengthen support for domestic production.

In a press statement titled, ‘April 2026 Inflation Signals Fragile Economic Recovery’ the director-general of LCCI, Dr. Chinyere Almona said, noted the marginal increase in Nigeria’s headline inflation rate to 15.69 per cent in April 2026 from 15.38 per cent in March, according to the latest statistics.

“While the increase reflects persistent cost pressures across the economy, the sharp moderation in month-on-month inflation from 4.18 per cent to 2.13 per cent signals a gradual easing in the pace of price increases and offers cautious optimism for businesses and households.

“The Chamber observes that inflation continues to weigh heavily on manufacturers, MSMEs, traders, and consumers through rising costs of food, transportation, energy, and logistics. The higher rural inflation rate of 16.36 per cent also highlights ongoing supply chain disruptions, insecurity in food-producing areas, and weak distribution infrastructure,” she said.

According to her, although inflation has declined significantly from 26.82 per cent recorded in April 2025, businesses and households are yet to experience meaningful relief as purchasing power remains weak and operating costs remain elevated.

“The LCCI urges government to consolidate current macroeconomic reforms by stabilising the foreign exchange market, addressing energy and logistics costs, improving food supply systems, and strengthening support for domestic production and private sector investment.

“It also calls for stronger coordination between fiscal and monetary authorities to sustain the moderation in inflation and restore investor and consumer confidence in the economy.”

Almona reiterated that durable price stability can only be achieved through productivity-driven reforms, improved infrastructure, enhanced food security, and a more business-friendly operating environment.

“We must begin to develop long term strategies to reduce the shocks on the economy from global crises whether in energy supply chain disruptions or trade wars. We have an opportunity at this time to reset our oil and gas industry as the next supply hub of gas to Europe and net oil exporter to African countries needing our oil.

“The global supply of urea has also taken a significant hit from the global supply chain disruptions due to the crisis in the Middle East. We must focus on our local production of urea to drive our food security in the near term.

“We need an indigenous plan to boost crude production and then increase crude supply to our local refineries to reduce our fuel import bills,” she said.