Inflation: LCCI Cautions Against Complacency
The Lagos Chamber of Commerce and Industry (LCCI) has stressed the need to guard against complacency in spite of the recent marginal decline in Nigeria’s inflation rate. It, however, warned that mounting risks could reverse the trend.
The Director General, LCCI, Dr Chinyere Almona, gave the advice on Tuesday in Lagos in reaction to the February inflation figure of 15.06 per cent from 15.10 per cent in January.
Almona noted that although headline inflation eased slightly to 15.06 per cent, the increase in month-on-month inflation to 2.01 per cent signalled that price pressures remained entrenched. She said the current inflation trajectory reflected a fragile grip on price stability.
Almona noted that food inflation continued to dominate, driven by structural inefficiencies in the supply chain, insecurity in farming regions, and high logistics and transportation costs.
She warned that global and domestic headwinds, including geopolitical tensions in the Middle East and potential volatility in energy markets, posed significant threats to Nigeria’s inflation outlook.
According to her, any surge in global oil prices could translate into higher fuel and transport costs, worsening inflationary pressures in the domestic economy.
She added that exchange-rate instability remained a major concern, as disruptions in global supply chains could increase the cost of imports, including raw materials, machinery and essential goods.
Almona stressed that without sustained policy intervention, recent gains in inflation moderation could be short-lived.
She called on the Federal Government to prioritise exchange-rate stability through improved foreign exchange liquidity and increased non-oil export earnings.
“The chamber also urges targeted investments in agriculture to boost productivity, improve storage systems and address supply bottlenecks contributing to rising food prices.
“There’s a need for accelerated reforms in the power sector, noting that unreliable electricity continued to drive up production costs for businesses,” she said.
The LCCI boss advocated improvements in transport and trade infrastructure, including port efficiency and cargo evacuation, to reduce the high cost of moving goods across the country.
She acknowledged that while the recent slowdown in inflation was a positive signal, only sustained structural reforms and supply-side interventions would ensure long-term price stability. #Inflation: LCCI Cautions Against Complacency#
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