The Lagos Chamber of Commerce and Industry (LCCI) has expressed cautious optimism following the latest inflation figures released by the National Bureau of Statistics (NBS), which show Nigeria’s headline inflation rate eased to 22.97 per cent in May 2025, down from 23.71 per cent in April.

Reacting to the report, the Director-General of the LCCI, Chinyere Almona, described the decline as a positive sign that reflects the Central Bank of Nigeria’s (CBN) sustained efforts in curbing inflation through monetary tightening, including strategic interest rate hikes and liquidity controls. However, she warned that the progress remains fragile due to persistent structural and global challenges.

“We welcome the modest decline in inflation, which signals the impact of the CBN’s consistent monetary tightening,” said Almona. “However, this improvement is fragile, and we must address the underlying risks to maintain this trajectory.”

The LCCI identified several domestic threats that could reverse recent gains, including ongoing herdsmen-farmers conflicts in the Middle Belt and recent flooding, both of which threaten food production. These disruptions, the Chamber warned, could lead to a spike in food inflation—a major driver of the overall inflation index—during the third and fourth quarters of the year.

On the international front, Almona pointed to escalating tensions in the Middle East and stalled ceasefire negotiations between Russia and Ukraine as factors pushing up global oil prices. These developments are increasing costs for imported fuel and goods, compounding inflationary pressures.

“These external shocks pose significant risks to food availability and prices,” she noted.

To shield the economy from further inflationary pressures, the Chamber called for a coordinated policy response. Almona commended ongoing reforms in the oil and gas sector, particularly the Naira-for-crude initiative and the mandate for local refineries to receive crude supplies, which she said have helped stabilise domestic fuel prices.

She urged the CBN to sustain its prudent monetary stance while also improving credit access for agriculture and manufacturing sectors to boost domestic production and ease inflationary pressures.

The LCCI also emphasised the need to strengthen Nigeria’s agricultural resilience. “The government must scale up support for dry season farming, irrigation infrastructure, and mechanisation to reduce our dependence on rain-fed agriculture, which is increasingly vulnerable to climate shocks,” said Almona.

Additionally, the Chamber called for investment in food transportation networks to improve efficiency in moving goods from rural farms to urban markets. This, it argued, would help lower food prices and minimise post-harvest losses.

Almona concluded by advocating for increased government spending in critical sectors such as food, energy, and transport, as well as stronger social safety nets for vulnerable Nigerians.

“Tackling insecurity and enhancing fiscal-monetary coordination are critical to ensuring sustainable, inclusive growth,” she said.