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By Merit Ibe
The Lagos Chamber of Commerce and Industry (LCCI) has raised fresh concerns that the escalating herdsmen-farmers clashes in Nigeria’s middle-belt region, coupled with worsening flooding disasters, could significantly threaten food availability and drive up prices in the latter half of 2025 and ultimately exacerbate the nation’s food inflation woes.
The chamber also warned of looming disruptions in logistics and supply chains, given the intensifying conflict in the Middle East and the prolonged stalemate in Russia-Ukraine ceasefire talks.
LCCI’s position was articulated yesterday by its Director General, Dr. Chinyere Almona, while reacting to the latest inflation figures released by the National Bureau of Statistics (NBS), which showed that Nigeria’s headline inflation rate eased to 22.97 per cent in May 2025, from 23.71 per cent recorded in April 2025.
Dr. Almona noted that while this marginal drop signals a welcome shift in Nigeria’s inflationary trajectory after months of persistent increases, it was likely spurred by the Central Bank of Nigeria’s (CBN) consistent monetary tightening—including interest rate hikes and liquidity control measures.
She, however, cautioned that the modest gains could easily be undermined by unresolved structural issues: “This improvement in inflation must be viewed with caution, especially in light of the prevailing structural risks and potential shocks to food production and distribution,” she said.
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Dr. Almona stressed the urgent need for the government to sustain momentum in addressing core inflation drivers—specifically insecurity, weak agricultural infrastructure, and poor policy coordination—if the progress made so far is to be sustainable and inclusive.
To consolidate the gains, the LCCI boss recommended a carefully balanced mix of fiscal and monetary policies. Among her suggestions: “The Naira-for-crude initiative and the mandated crude supply to local refineries should be sustained. The CBN should maintain a prudent monetary stance while also improving credit access to productive sectors, especially agriculture and manufacturing, to stimulate supply-side responses to inflation. The stoppage of government ways and means provisions should also be upheld—regardless of political pressure.”
Dr. Almona further called for urgent investments to expand dry season farming, irrigation, and mechanized agriculture in order to reduce Nigeria’s heavy dependence on rain-fed farming systems.
She added: “Government must remain laser-focused on resolving inefficiencies in food movement from farms to urban centres. Fixing transport bottlenecks will help bring down market prices and reduce post-harvest losses.”
In addition, she urged that public spending should prioritize critical sectors with the highest inflationary impact: “Government expenditure should focus on sectors like food, energy, and transport—while closing leakages and scaling up social safety nets for the most vulnerable households.”
