LCCI advocates coordinated policies to sustain inflation recovery

By Merit Ibe  

The Lagos Chamber of Commerce and Industry (LCCI) has said that while inflationary pressures are gradually easing and the economy shows signs of cooling, a sustained recovery will largely depend on consistent and well-coordinated policy actions.

The chamber noted that recent moderation in inflation offers cautious optimism, but warned that the gains could be short-lived without disciplined fiscal and monetary policies. 

In its assessment of the December 2025 inflation data, the chamber acknowledged a clear slowdown in inflationary momentum but stressed that the economy still needs careful and coordinated policy support to achieve full recovery.

According to the LCCI, headline inflation declined sharply from 34.80 per cent in December 2024 to 15.15 per cent in December 2025, while month-on-month inflation more than halved. This, it said, confirms a transition from rapid inflation to gradual disinflation rather than a sudden reversal in prices.

The chamber highlighted the sharp drop in food inflation as the most significant relief for households, driven by falling prices of key staples such as grains, vegetables, garri, beans and tomatoes, reflecting improved supply conditions. However, it warned that inflation remains structurally high, with twelve-month average headline inflation at 23.01 per cent and core inflation at 23.49 per cent, pointing to lingering effects of past price shocks.

LCCI noted that although inflationary pressures are easing and the economy is cooling, sustained recovery will depend on consistent and coordinated policy actions.

To consolidate the gains, the chamber recommended strengthening agricultural supply chains and market interventions to ensure steady availability of staple foods and reduce price volatility. It also called for prudent fiscal discipline alongside targeted monetary support for productive sectors to enable sustainable easing of lending rates without reigniting inflation.

The chamber further urged the government to enhance export competitiveness, improve foreign exchange inflows, and stabilise external reserves through support for non-oil exports and remittances, which would support naira stability. It also advised streamlining regulatory processes, improving infrastructure reliability and reducing bureaucratic bottlenecks to lower the cost of doing business.

LCCI emphasised that governments at all levels must remain focused on addressing inflationary drivers such as high energy costs, elevated interest rates, insecurity, currency pass-through effects and high logistics costs, while sustaining policies that support food production and fuel supply.

“Businesses need to experience relief from the easing cost of doing business, and citizens must begin to see stable prices in the markets,” the chamber stated.