Insecurity and Global Conflicts May Worsen Food Inflation in Nigeria – LCCI Alerts

The Lagos Chamber of Commerce and Industry (LCCI) has raised concerns that persistent insecurity and escalating global tensions may further aggravate food price inflation across Nigeria.

Speaking in Lagos on Tuesday, the Director-General of LCCI, Dr. Chinyere Almona, highlighted these risks in reaction to the recently published May inflation report, which shows a slight decrease in the country’s headline inflation rate.

According to the National Bureau of Statistics (NBS), Nigeria’s inflation rate declined slightly to 22.97% in May 2025, down from 23.71% recorded in April.

Dr. Almona interpreted this as a marginal but welcome improvement, noting that it breaks the pattern of continuous inflation growth over past months. She credited the Central Bank of Nigeria’s (CBN) efforts—such as interest rate hikes and liquidity tightening—as contributing factors to the modest decline.

However, she cautioned that these improvements might not last if deeper structural threats are not addressed. She emphasized that the escalating farmer-herder conflicts in the Middle Belt, as well as recent flooding events, are likely to negatively impact food production and harvesting throughout the year.

In addition, she pointed out that global conflicts, including the prolonged war between Russia and Ukraine and ongoing unrest in the Middle East, have disrupted international logistics and food supply chains.

“These factors can severely impact harvest output and cause further disruptions in supply chains,” Almona warned. “Rising oil prices, caused by geopolitical instability and trade disputes, may also increase the cost of importing fuel and other critical products.”

She emphasized that these combined shocks could significantly threaten food security and trigger heightened food inflation, especially in Q3 and Q4 of 2025, which are pivotal in Nigeria’s economic cycle.

Dr. Almona urged the Nigerian government to intensify its efforts to tackle security challenges, strengthen agricultural infrastructure, and enhance policy collaboration between key economic sectors. She called for a coherent mix of fiscal and monetary reforms, particularly in the oil and gas sector, which has in the past helped slow fuel price surges.