The Lagos Chamber of Commerce and Industry (LCCI) has cautioned that despite a marginal drop in Nigeria’s inflation rate to 22.97% in May, food prices may rise further due to escalating global and domestic tensions. This warning was issued by LCCI Director-General, Dr. Chinyere Almona, in reaction to the latest inflation data released by the National Bureau of Statistics, showing a slight decline from April’s 23.71%.
Dr. Almona attributed the drop to the Central Bank of Nigeria’s (CBN) monetary tightening policies, such as interest rate hikes and liquidity control. However, she urged caution, highlighting ongoing risks that threaten food production and supply. These include persistent herdsmen-farmers clashes in Nigeria’s Middle Belt, recurrent flooding, and global disruptions caused by Middle East conflicts and the unresolved Russia-Ukraine war, all of which could aggravate logistics challenges and supply chain disruptions.
To prevent a food crisis and sustain the modest inflation improvement, the LCCI urged the government to urgently address insecurity, strengthen agricultural infrastructure, and ensure better fiscal and monetary coordination. Almona also called for oil and gas sector reforms to manage fuel-related inflation and emphasized the need for inclusive and sustainable policy actions to stabilize the economy in the coming months.
