The latest Consumer Price Index shows Nigeria’s headline inflation rate eased slightly to 15.06% in February 2026 from 15.10% in January, marking a significant drop from 26.27% recorded in February 2025. This marginal deceleration signals a gradual easing of inflationary pressures in the economy.
However, the Lagos Chamber of Commerce and Industry notes that underlying inflation risks remain substantial. Month-on-month inflation rose to 2.01% in February after contracting in January, highlighting persistent price pressures. Food prices continue to drive inflation, reflecting structural challenges in the country’s food supply chain, high logistics costs, and production constraints.
From the perspective of the organized private sector, the slight moderation offers cautious optimism for businesses and households, as high inflation has eroded purchasing power, increased production costs, and weakened consumer demand across several sectors.
The Chamber warns that emerging domestic and global risks could reverse recent gains. Rising geopolitical tensions linked to the Iran conflict in the Middle East may cause volatility in global energy markets, potentially increasing fuel, transportation, and logistics costs. Nigeria could partially insulate itself by expanding local refining capacity and boosting crude supply to domestic refineries.
Further, exchange-rate volatility amid global supply chain disruptions could raise the cost of imported raw materials, machinery, pharmaceuticals, and food items, pushing up production and consumer prices. Insecurity in food-producing regions, climate-related disruptions, and high transportation costs continue to threaten food supply and price stability.
The LCCI emphasizes the need for deliberate policy actions to sustain inflation moderation. Recommended measures include improving foreign exchange liquidity, boosting non-oil export earnings, enhancing agricultural productivity, addressing insecurity in farming communities, and investing in storage and logistics infrastructure to stabilize food prices.
Reforms in the power and energy sectors are also critical to lowering production costs, while improvements in transportation and trade infrastructure, including ports and digital trade processes, would reduce logistics costs that contribute significantly to consumer prices.
While the slight decline in inflation is encouraging, the Chamber stresses that maintaining the trend will require consistent macroeconomic management, structural reforms, and policies that enhance domestic productivity. Supply-side interventions are preferred over price controls to prevent the reversal of inflation deceleration observed so far in 2026.
