LCCI Cautions Food Prices May Rise Due To Insecurity

The Lagos Chamber of Commerce and Industry has emphasized the need for Nigeria to sustain efforts in tackling the root causes of inflation, even with the recent slight decline in the inflation rate. Dr Chinyere Almona, the LCCI Director-General, made this statement on Tuesday in Lagos, reacting to the May inflation rate of 22.97 per cent.

The National Bureau of Statistics reported that Nigeria’s headline inflation dropped to 22.97 per cent in May, compared to 23.71 per cent in April.

Dr Almona described this as a modest but encouraging change in the nation’s inflation trend following months of continuous rises, crediting the Central Bank of Nigeria’s consistent monetary tightening measures, such as interest rate hikes and liquidity management.

Nevertheless, Dr Almona cautioned that the improvement should be approached with care due to persistent structural challenges and potential disruptions to food production and distribution.

She warned, “The recent spate of herdsmen-farmers clashes in the Middle Belt and flooding disasters are negative signals capable of limiting food harvests this year.

Logistics and supply chain risks also loom due to current escalations in the Middle East and the deadlocked ceasefire talks between Russia and Ukraine. Importing fuel and other products may become more expensive as oil prices have risen due to ongoing tensions and trade wars. These shocks pose significant risks to food availability and prices, which can drive food inflation—an essential component of the headline inflation index in the third and fourth quarters of 2025.”

Dr Almona urged the government to take bold steps to address insecurity, enhance agricultural infrastructure resilience, and strengthen policy coordination to ensure sustainable and inclusive progress.

She advocated for a balanced approach combining fiscal and monetary policies, including reforms in the oil and gas sector that have previously curbed fuel price surges.

She also recommended sustaining the naira-for-crude policy and ensuring crude supply to local refineries. Additionally, the LCCI Director-General advised the CBN to uphold prudent monetary policies while facilitating better credit access for key sectors like agriculture and manufacturing, and stressed the importance of continuing to avoid government ways and means provisions despite any pressures.

Dr Almona highlighted the need for increased government investment in dry season farming, irrigation systems, and mechanization to lessen reliance on rain-fed agriculture.

She concluded, “There is an urgent need for the government to scale up support for dry season farming, irrigation infrastructure, and mechanisation to reduce Nigeria’s dependence on rain-fed agriculture.

The government must remain focused on addressing challenges related to the movement of food from farms to cities. Addressing inefficiencies in transporting goods, particularly food, from rural to urban markets can help lower market prices and reduce post-harvest losses.”


Discover more from LN247

Subscribe to get the latest posts sent to your email.

Advertisement

Most Popular This Week

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Posts

Advertisement

Discover more from LN247

Subscribe now to keep reading and get access to the full archive.

Continue reading