The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, said that while Nigeria’s Consumer Price Index (CPI) has moderated with inflation easing for the fifth consecutive month to 20.12 per cent in August, the current inflation level remains uncomfortably high.
 
She said government and economic managers must address the key drivers of inflationary pressure to tame it, noting that more deliberate efforts are required to strengthen food production to meet the demand of a growing population, resolve persistent supply chain disruptions in the oil and gas sector, stabilise FX earnings with higher exports and sustain ongoing economic reforms to secure durable outcomes.
 
The DG noted that, given the high energy costs facing households and businesses, there is an urgent need to reassess the oil and gas sector.   
 
“Recurring challenges such as crude supply to local refineries, pricing disputes among marketers and tensions with unions continue to create instability. The full and decisive implementation of the Petroleum Industry Act (PIA) is critical. Current gaps in compliance have resulted in labour abuses and uncertainties, as seen in the recent NUPENG/DAPPMAN/Dangote Refinery dispute,” she said.
 
While some FX stability has been achieved, she said, it remains very fragile and policy decisions must be carefully weighed to avoid undermining the progress.
 
“The recent export ban on sheanuts must be carefully implemented based on critical fundamentals. Protecting local production through an export ban can result in multiple challenges if the factors supporting local production are unavailable.
 
“The Chamber has consistently advocated adding value to our primary commodities and exporting them as finished goods, rather than exporting them in their raw state. We must, however, reconsider the state of agro-processing infrastructure in Nigeria.
 
“The policy could also harm exporters with existing international contracts while limiting FX inflows. Government policies should focus on incentivising domestic processing, upgrading agro-processing infrastructure and promoting value-added exports,” Almona said.

She said supporting domestic industries while safeguarding export markets is crucial to sustaining FX inflows, maintaining exchange rate stability and continuing the ongoing disinflation trend.

“Managing the oil and gas sector effectively, alongside prudent trade policies, will be central to reducing inflationary pressures and positioning Nigeria on a path to sustainable growth. Every policy decision must reinforce growth, stability and the confidence of both consumers and investors. We will continue to work with the government and stakeholders in ensuring policies that balance consumer welfare, investor confidence and macroeconomic stability,” she said.