LCCI Lists What FG, CBN Must Do to Contain Nigeria's Inflation, Interest Rates
- The Lagos Chamber of Commerce and Industry (LCCI) has advised the federal government to look beyond the rebased inflation figures
- The chambers, in its statement, reacted to the rebased inflation figures as contained in the CPI report from NBS
- The chambers also list what the government must do to address real inflationary pressures in the economy
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Lagos Chamber of Commerce and Industry (LCCI) has advised the federal government not to relax in the fight against inflation, based on the rebased inflation figures.
It noted that the fight against inflationary pressures in the economy must be continued judiciously.
This was contained in a statement titled; "Beyond the Numbers: Ensuring Real Economic Relief For Nigerians" and signed by the Director-General, Dr. Chinyere Almona.
Source: Getty Images
The National Bureau of Statistics released the rebased CPI report for January 2025, which revealed lower inflation figures.
Commenting on the rebased figures, LCCI DG noted that the drop from 34.80% in December 2024 to 24.48% in January 2025, is a function of NBS recalibrating the Consumer Price Index (CPI) and does not reflect the reality for businesses and households in Nigeria.
Almona noted that many businesses and households are still caught in financial struggles due to the hike in costs of goods and services, LEADERSHIP reports.
She said;
“The rebasing provides a more updated and reflective measure of economic conditions but does not necessarily translate into immediate relief from inflationary pressures in practical terms.”
LCCI reacts to CBN holding interest rates
The LCCI statement further commended the Central Bank of Nigeria (CBN) Monetary Policy Committee's decisions regarding interest rates.
Almona noted that the decision to maintain the Monetary Policy Rate (MPR) at 27.50% is a good one, and marks a good beginning to the year for businesses in Nigeria.
She noted that the rising cost of accessing credit in the last year stifled many businesses that had expansion plans for the period, and the decision to hold rates signals stability for investors, thus enhancing confidence.
The statement read;
“We look forward to seeing a persistent focus on fighting the fundamentals that have contributed to rising inflation that has occasioned the hiking of rates as a form of response.”
She advised that if the government gets too comfortable with the new figures, the fight against inflation would be lost.
“The fundamental variables that have driven inflation upwards for months, like insecurity, high cost of energy, burdening cost of logistics and imports, and a volatile forex market, must be kept under close watch for targeted interventions.”
Source: Getty Images
She also called on the CBN and other government agencies to keep their focus on those issues that affect enterprise and economic performance, to drive real growth of the Nigerian economy.
Recall that the CBN has unveiled a strategy to get Nigeria from double-digit to single-digit inflation figures.
NBS releases rebased inflation figures
In related news, the NBS finally released the rebased CPI report for January 2025 nearly three weeks after it was expected.
The report brings in whole new dynamics with Headline inflation down to 24.48% from 34.8% in December 2024.
Food inflation also crashed from 39.4% in December 2024 to 26% in January 2025. NBS said in the highlights that the figures reflect inflation in January 2025, compared to January 2024 as the base period.
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Source: Legit.ng
