The Lagos Chamber of Commerce and Industry (LCCI) has issued a warning that rising insecurity within Nigeria, combined with escalating global geopolitical tensions, poses a serious threat of pushing food prices even higher in the coming months.
LCCI Director-General Dr. Chinyere Almona acknowledged the modest improvement in Nigeria’s headline inflation, which eased to 22.97% in May, down from 23.71% in April. While this marks a positive shift, she cautioned that it remains fragile and could be undermined by looming structural and external shocks like herdsmen-farmers clashes, flooding in the Middle Belt, and global supply chain disruptions.
She also highlighted the global factors waiting in the wings. Rising tensions in the Middle East and stalled ceasefire negotiations between Russia and Ukraine have driven up oil prices.
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This puts upward pressure on transportation and import costs for fuel and essential goods, which could eventually translate into food inflation—a major component of headline inflation in the third and fourth quarters of 2025.
To mitigate these risks, Dr. Almona urged the government to take proactive measures: tackle insecurity head-on, invest in resilient agricultural infrastructure—like irrigation and mechanisation—and coordinate fiscal and monetary policies that support local agriculture and manufacturing. Among her recommendations: maintain the naira-for-crude policy, boost credit for food production, and strengthen supply chains to ensure food gets to cities efficiently.
Nigeria has brought inflation down slightly, but threats such as local violence, climate issues, and global unrest could undo the progress. The LCCI advises coordinated policy action—combining security, infrastructure, finance, and trade efforts—to protect Nigeria’s food supply and control prices as the year progresses.
