The Lagos Chamber of Commerce and Industry (LCCI) has called on the government to prioritize fiscal discipline as a crucial strategy to ensure a continued decline in inflation.
This appeal was made by the Director-General of LCCI, Dr. Chinyere Almona in response to the January inflation rate of 24.48 percent.
Nigeria’s inflation rate dropped to 24.48 percent in January 2025, following the rebasing of the Consumer Price Index (CPI).
Dr. Almona also urged the Central Bank of Nigeria (CBN) to fine-tune monetary policies to strike a balance between curbing inflation and sustaining economic growth.
She emphasized the need for targeted interventions to address inflationary pressures and improve economic stability, despite the rebased January inflation rate. Dr. Almona noted that the sharp drop in the inflation rate from 34.8 percent to 24.48 percent was primarily due to the rebasing of the CPI.
“A rebased inflation rate does not resolve the rising cost of living,” she said.
Inflation rate
According to Dr. Almona, despite the lower rebased rate, inflation remains high, meaning prices are still rising, just at a slower pace. She highlighted that a lower inflation rate might appear positive, but it does not automatically improve living standards.
“For most Nigerians, essential costs like food and transportation remain high, meaning living conditions will not improve unless there is a real reduction in the cost of necessities. While the rebased inflation rate provides policymakers with a clearer view of economic trends, it does not resolve the rising cost of living. The government must implement targeted interventions to address inflationary pressures and improve economic stability,” she stated.
Dr. Almona identified food inflation as a key priority to tackle, accounting for over 50 percent of price increases. She emphasized that policies should focus on boosting agricultural productivity, reducing post-harvest losses, and improving transportation and storage infrastructure to ensure food affordability.
She also stressed the importance of stabilizing the exchange rate and encouraged local production and reduced reliance on imports to help strengthen the currency and control price surges.
What you should know
According to Nairametrics, Nigeria’s headline inflation rate dropped to 24.48 percent year-on-year in January 2025, following the rebasing of the CPI, as reported by the National Bureau of Statistics (NBS).
- The report highlights a decline in the general price level of goods and services compared to 34.80 percent in December 2024, calculated using the previous methodology.
- The latest NBS report indicated that urban inflation stood at 26.09 percent, while rural inflation was recorded at 22.15 percent.
- The rebased food inflation index stood at 26.08 percent year-on-year in January 2025, indicating a decline from the 39.84 percent recorded in December 2024 under the old methodology.
The food inflation index measures the price movement of essential food items, which constitute a significant portion of household expenditures in Nigeria. Similarly, the core inflation rate, which excludes volatile agricultural produce and energy prices, stood at 22.59 percent year-on-year in January.
