Inflation Resurgence Threat To Economic Stability, Says LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has raised fresh concerns over Nigeria’s inflation outlook following a rebound in headline inflation to 15.38 per cent in March 2026, warning that the development poses renewed risks to businesses, household welfare, and overall economic stability.

The Chamber said on Thursday that the latest figure released by the National Bureau of Statistics (NBS), up from 15.06 per cent recorded in February, effectively halts the recent disinflation trend and signals persistent underlying price pressures in the economy.

According to the LCCI, the uptick in inflation was largely driven by increases in food inflation, which rose to 14.31 per cent, transport costs at 16.9 per cent, and a rise in core inflation to 16.21 per cent.

The Chamber noted that rising domestic fuel prices, partly linked to geopolitical disruptions in global energy markets, have intensified cost-push pressures across production, logistics, and distribution value chains.

Director-General of LCCI, Dr. Chinyere Almona, said the resurgence of inflation presents significant challenges for the organised private sector, particularly in terms of rising operating costs, shrinking profit margins, and weakened consumer purchasing power.

She warned that if not addressed urgently, the renewed inflationary trend could undermine business sustainability, reduce economic competitiveness, and exacerbate poverty levels across the country.

“The current inflation dynamics reflect deep-rooted structural challenges, particularly in energy supply, food systems, logistics, and foreign exchange management,” Almona stated.

To mitigate these risks, the Chamber called on the Federal Government to implement urgent and coordinated policy measures aimed at stabilising prices and restoring economic confidence.

On energy, the LCCI emphasised the need to stabilise domestic fuel prices by boosting local refining capacity, improving supply chain efficiency, and reducing exposure to global oil price shocks.

It also stressed the importance of transparency in fuel pricing mechanisms and short-term interventions to ensure consistent supply.

Addressing food inflation, the Chamber urged the government to tackle structural bottlenecks in agricultural value chains by improving access to inputs, mechanisation, irrigation, and rural infrastructure.

It also highlighted the need to address insecurity in food-producing regions and reduce post-harvest losses through better storage and logistics systems.

While acknowledging recent tariff adjustments on selected food items and agricultural inputs, the LCCI noted that such measures must be complemented by broader reforms to achieve meaningful price stability.

On transportation and logistics, the Chamber called for accelerated investment in infrastructure, including roads, rail, and inland waterways, alongside reforms to address inefficiencies in port operations. It further urged the government to eliminate multiple taxation and checkpoints that increase the cost of moving goods, and to fast-track the implementation of reduced automotive tariffs to ease mobility costs.

The LCCI also underscored the importance of exchange rate stability in curbing imported inflation. It recommended measures to improve foreign exchange liquidity, boost non-oil exports, and strengthen investor confidence through transparent and predictable FX policies.

The Chamber added that improved crude oil earnings should translate into increased forex supply to support critical imports for businesses.

In addition, it called for stronger support for local production and industrial competitiveness through targeted incentives, improved access to credit, and consistent policy frameworks, noting that reducing dependence on imports would help cushion the economy against external shocks.

The Chamber concluded that the resurgence of inflation highlights the urgency of sustained and targeted reforms, stressing that addressing structural drivers across key sectors remains critical to restoring price stability and supporting Nigeria’s economic recovery.