The Lagos Chamber of Commerce and Industry (LCCI) has expressed support for the ongoing economic reforms introduced by the administration of President Bola Ahmed Tinubu.
The LCCI also emphasised the need for robust regulations to ensure the sustainability of new investments flowing into Nigeria’s oil sector.
In a statement issued on Tuesday in response to the latest inflation figures from the National Bureau of Statistics (NBS), the Director-General of the LCCI, Dr. Chinyere Almona, noted that the persistent rise in inflation, which reached a 26-year high of 34.60% in November, is creating a tense business environment. She highlighted that escalating prices are severely constraining business operations.
Almona further warned that Nigerian businesses would face increased challenges in the coming year due to rising inflation.
“With the inflation rate soaring, the Central Bank’s efforts to reduce currency circulation proving ineffective, and the approaching festive season expected to bring increased spending, we are likely to face even higher interest rates,” she said.
She added that the high inflation has wide-ranging consequences, including reduced consumer spending. “High food and core inflation erode disposable income, resulting in lower demand for non-essential goods and services. Businesses also face higher operating costs and shrinking profit margins,” she explained.
Despite these concerns, Almona urged the Federal Government to maintain its reform efforts, believing that these measures could drive essential improvements in the economy and return it to a growth trajectory.
“While we are currently witnessing a weak impact of interest rates on curbing inflation, we expect the implemented reforms to better support production,” she stated.
The LCCI Director-General expressed optimism that the effects of the reforms would become more evident in key economic indicators such as inflation, interest rates, and exchange rates.
She also called for a coordinated approach to increasing oil production, which would generate the foreign exchange needed to stabilise the naira in the short term.
Almona further advised that the influx of new investments into the oil sector should be supported by a sound regulatory environment, which would not only sustain these investments but also attract more in the future.
“The renewed fight against terrorism, kidnapping, and other criminal activities that undermine the security of our farms must continue with increased funding,” she said. “Nigeria must also enhance its use of intelligence and surveillance technology, alongside a constitutional amendment to enable multi-level policing.”
According to the latest data from the NBS, Nigeria’s headline inflation surged to 34.60% in November 2024, reflecting a further increase in the prices of goods and services across the country.
Core inflation, which excludes volatile agricultural products and energy prices, stood at 28.75% in November 2024, marking a 6.36% rise from 22.38% in November 2023.