LCCI Highlights Risks in Nigeria’s Rising Monthly Inflation

By Adedapo Adesanya

The Lagos Chamber of Commerce and Industry (LCCI) has raised concerns over the month-on-month rise in inflation despite a moderate easing in headline inflation.

Earlier this week, data from the National Bureau of Statistics (NBS) showed Nigeria’s consumer prices moderating slightly to 15.06 per cent year-on-year in February 2026 from 15.10 per cent in January. However, a sharp month-on-month rebound to 2.01 per cent signalled renewed momentum.

LCCI Director-General, Mrs Chinyere Almona, called for deliberate action amid risks such as exchange-rate volatility and food insecurity.

She viewed the drop from 26.27 per cent in February 2025 as cautious optimism but stressed vigilance.

“Addressing high inflation has been crucial, as it has greatly impacted purchasing power, production costs, and consumer demand,” Mrs Almona said.

She flagged imported input costs and domestic issues, such as agricultural insecurity, noting that, “With the potential for exchange-rate volatility… There is a risk of increased costs for imported raw materials, machinery, pharmaceuticals, and food items.”

Mrs Almona advocated prioritising FX stability through non-oil exports, food security through productivity and infrastructure, and energy reforms to ensure reliable power.

“Advancing reforms in the power and energy sectors is crucial for reducing production costs,” she added, alongside transport and port efficiencies.

“Sustaining this trend will require consistent macroeconomic management, structural reforms, and policies aimed at enhancing domestic productivity,” she added.

She noted that with the potential for exchange-rate volatility, there is a risk of increased costs for imported raw materials, machinery, pharmaceuticals, and food items.

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

“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 “prioritising exchange-rate stability by enhancing foreign exchange liquidity and promoting non-oil export earnings is key.

She emphasised 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 jeopardise 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,” the LCCI DG explained.