LCCI warns government against complacency over rebased inflation figure

BY MOTOLANI OSENI

The Lagos Chamber of Commerce & Industry (LCCI) said, government must not get comfortable with a rebased inflation figure and lose the fight against inflationary pressures.

The director-general of LCCI, Dr. Chinyere Almona, stated this while reacting to the rebased inflation figure released during the week, stating that, the latest decision by the Monetary Policy Committee of the Central Bank of Nigeria (CBN) to maintain the Monetary Policy Rate (MPR) at 27.50 per cent is well appreciated and taken as the beginning of a better deal for the business community regarding the cost of credit.

She said, “in recent months, the rising and high interest rates have tormented businesses seeking to leverage credit for business operations and expansion.

“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.”

LCCI DG pointed out that,”while the recalibration of the Consumer Price Index (CPI) methodology by the NBS has resulted in a notable statistical decline in inflation, dropping from 34.80 per cent in December 2024 to 24.48 per cent in January 2025, the reality remains that many businesses and households continue to grapple with high costs of goods and services.

“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.”

She added that, keeping the MPR unchanged provides some form of policy stability, which enhances investor confidence and aids economic planning, at least in the short term.

Almona emphasised that, while the rebased inflation rate appears statistically lower, it does not translate to a tangible reduction in the cost of living, as many Nigerians still struggle with high prices for essential goods and services.

READ ALSO: Speaker says PANDEF Leader, served Nigeria diligently until the end

She urged the government not to be comfortable with a rebased inflation figure and lose the fight against inflationary pressures, saying, “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.”

LCCI also urged CBN and relevant authorities to ensure that monetary policy decisions remain responsive to the realities of businesses and consumers.

“While statistical adjustments provide a clearer picture of economic performance, concrete measures must be taken to reduce inflationary pressures in real terms, support enterprise development, and drive inclusive economic growth,” Almona stated.