The Lagos Chamber of Commerce and Industry (LCCI) has warned that Nigeria remains vulnerable to significant inflationary pressures in the coming months, despite a slight drop in the national inflation rate in May.
According to the National Bureau of Statistics, Nigeria’s inflation rate declined marginally from 23.71 per cent in April to 22.97 per cent in May.
Responding to the data, the Director-General of the LCCI, Dr Chinyere Almona, described the drop as a modest, but welcome development.
She attributed the improvement to ongoing monetary tightening by the Central Bank of Nigeria.
However, Almona cautioned that underlying risks persist, particularly in the food supply chain, which could reverse gains and drive up inflation later in the year.
She highlighted renewed herdsmen-farmers clashes in the Middle Belt and devastating floods as serious threats to food production. She also raised concerns over international factors, including rising oil prices, the Russia-Ukraine conflict, and tensions in the Middle East.
Almona warned that these developments could disrupt logistics, drive up the cost of fuel and imports, and further strain Nigeria’s already fragile food system.
She called on the federal government to act swiftly by tackling insecurity, investing in agricultural infrastructure, and ensuring stable policy coordination.
She also urged the continuation of key reforms, including sustaining crude-for-naira arrangements and mandatory supply of crude to local refineries, to cushion the impact of global price fluctuations.
Almona further advised the Central Bank to maintain tight monetary policy while expanding credit access to critical sectors such as agriculture and manufacturing.
She concluded by stressing the need to improve rural logistics, especially the movement of food to urban centres, to curb price hikes and post-harvest losses.
