LCCI warns of Inflation, threat to businesses

The Lagos Chamber of Commerce and Industry has warned that Nigeria’s rising inflation poses serious risks to businesses, consumers, and overall economic competitiveness.

In a statement on Thursday, the Director-General of LCCI, Dr Chinyere Almona, reacting to the latest figures released by the National Bureau of Statistics, said the resurgence in inflation threatens business sustainability and purchasing power.

“From the perspective of the organised private sector, this inflationary resurgence poses significant risks to business sustainability, consumer purchasing power, and overall economic competitiveness,” she said.

She noted that headline inflation rose to 15.38 per cent in March 2026, up from 15.06 per cent in February, halting the recent disinflation trend.

“This development effectively halts the recent disinflation trend and raises fresh concerns about the sustainability of near-term price stability,” Dr Almona added.

Drivers of inflation

Dr Almona attributed the uptick largely to increases in food prices, transport costs, and core inflation.

“The observed uptick, largely driven by increases in food inflation at 14.31 per cent and transport costs at 16.9 per cent, as well as a rise in core inflation to 16.21 per cent, reflects renewed underlying price pressures within the economy,” she said.

She also pointed to rising domestic fuel costs, influenced partly by global energy market disruptions, as a key factor driving cost pressures across production and distribution.

Call for urgent action

The chamber urged the Federal Government to take coordinated policy measures to address the inflationary trend.

On energy, Dr Almona emphasised the need to boost domestic refining and stabilise fuel supply.

“The recent escalation in fuel costs remains a major driver of inflationary pressure. We urge the government to prioritise measures that enhance domestic refining capacity… and reduce vulnerabilities to global energy price shocks,” she said.

Food and agriculture

Addressing food inflation, the LCCI called for reforms to improve agricultural productivity and reduce supply constraints.

“Food inflation continues to exert significant pressure on household welfare. There is an urgent need to strengthen agricultural productivity through improved access to inputs, mechanisation, irrigation, and rural infrastructure,” Dr Almona stated.

She also highlighted the importance of tackling insecurity in farming regions and reducing post-harvest losses.

Transport and logistics

On rising transport costs, the chamber urged increased investment in infrastructure and reforms in logistics operations.

“Rising transport costs are cascading into higher prices across sectors. The government should accelerate investments in transport infrastructure… and reduce multiple taxation and checkpoints that increase the cost of moving goods,” she said.

Exchange rate concerns

Dr Almona further stressed the need for exchange rate stability and improved access to foreign exchange.

“Exchange rate volatility continues to drive imported inflation… We recommend sustained efforts to improve foreign exchange liquidity, boost non-oil exports, and restore investor confidence,” she said.

She added that promoting local manufacturing would reduce dependence on imports and cushion external shocks.