Lagos Chamber of Commerce and Industry (LCCI) has stated that, despite a decline in food inflation, the government must maintain its focus on boosting food production through ongoing policy reforms and prompt actions, especially following the declaration of a national emergency on food security.
Nigeria’s inflation rate rose to 24.23 per cent in March 2025 after a consecutive decline in the first two months of the year. Food inflation, however, further eased to 21.79 per cent in March from 23.51 per cent in February, and when compared to January 2025 (26.08 per cent), it declined by 4.29 per cent. On the other hand, core inflation increased by 1.43 per cent points to 24.43 per cent in March.
The president of LCCI, Gabriel Idahosa emphasized that during the emergency period, the government should prioritise agricultural production infrastructure, enhance food processing capabilities, and continue efforts to combat insecurity in affected areas.
He warned that with the overall inflation rate rising again, the prospects for a reduction in interest rates may diminish if rising inflationary pressures are not managed effectively.
He stated, “With disruptions to global trade becoming a concern for many and a depreciating currency, we may start to see another phase of relentless inflation driven primarily by food, energy, and logistics costs.”
Comercio Partners Group noted that the March 2025 Consumer Price Index (CPI) report highlights the challenges facing Nigeria’s economy, including rising core inflation, currency depreciation, and disruptions in key policy initiatives such as the Naira-for-Crude deal.
The firm observed that while core inflation increased, food inflation, which comprises approximately 40 per cent of the CPI basket, slowed down in March 2025.
“The food inflation rate moderated to 21.79 per cent, compared to 23.51 per cent in February. This decline is largely attributed to relative stability in the prices of key staple foods, as well as a slowdown in transport cost increases, which have a significant impact on food distribution.”
Comercio also pointed out that the suspension of the Naira-for-Crude policy caused a slight rise in Premium Motor Spirit (PMS) prices; however, this did not lead to a substantial increase in transportation costs. As a result, the impact on food prices was limited, providing consumers with some temporary relief from rising living costs.
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