Inflation rebound endangers firms, consumers — LCCI

The resurgence of inflation in Nigeria poses significant risks to business sustainability, consumer purchasing power, and overall economic competitiveness, the Lagos Chamber of Commerce and Industry has warned.

In a statement on Thursday, the Director-General of LCCI, Dr Chinyere Almona, reacting to the latest inflation figures released by the National Bureau of Statistics, said the rising inflation rate posed a major risk to business sustainability and consumer 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,” Almona stated.

Aligning itself with the organised private sector, the LCCI cautioned that the inflationary resurgence could worsen economic conditions.

Almona said, “The Lagos Chamber of Commerce and Industry notes with concern the latest report by the National Bureau of Statistics, which indicates that headline inflation rose to 15.38 per cent in March 2026, up from 15.06 per cent in February. This development effectively halts the recent disinflation trend and raises fresh concerns about the sustainability of near-term price stability.”

The LCCI DG added that the uptick was driven largely by increases in food inflation, transport costs, and core inflation, reflecting renewed underlying price pressures in the economy.

Almona said, “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. Of particular concern is the impact of rising domestic fuel costs, partly influenced by geopolitical disruptions in global energy markets, which have intensified cost-push pressures across production, logistics, and distribution value chains.”

The chamber urged the Federal Government to take urgent and coordinated policy actions to address the situation.

On energy, Almona said, “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, improve supply chain efficiency, and reduce vulnerabilities to global energy price shocks. Greater transparency in pricing mechanisms and targeted interventions to stabilise fuel availability are critical in the short term.”

She also called for reforms in the agricultural sector to tackle food inflation. Almona said, “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. In addition, addressing insecurity in food-producing regions and reducing post-harvest losses through better storage and logistics systems will help moderate food prices.”

On transportation and logistics, the LCCI called for accelerated infrastructure investments and policy reforms.

Almona said, “Rising transport costs are cascading into higher prices across sectors. The government should accelerate investments in transport infrastructure, including roads, rail, and inland waterways, while also addressing inefficiencies in port operations and reducing multiple taxation and checkpoints that increase the cost of moving goods. The reduction in automotive tariffs for passenger-moving vehicles should be implemented immediately and allow the effect to be felt on our roads.”

The chamber further emphasised the need for exchange rate stability and improved access to foreign exchange.

Almona said, “Exchange rate volatility continues to drive imported inflation, particularly for manufacturers dependent on imported inputs. We recommend sustained efforts to improve foreign exchange liquidity, boost non-oil exports, and restore investor confidence through predictable and transparent FX policies. With improved FOREX earnings from high crude oil prices, there should be a boost in the supply of foreign exchange for businesses to support critical imports.”

She added that supporting local production would help reduce exposure to external shocks, stating, “Promoting local manufacturing through targeted incentives, improved access to credit, and stable policy frameworks will reduce dependence on imports and mitigate exposure to external shocks. The ongoing efforts around industrial policy should be accelerated and effectively implemented.”

The LCCI concluded that urgent and sustained interventions were needed to curb inflationary pressures and support economic recovery.