Moderate drop in inflation sparks tentative hope for companies, says Lahore Chamber of Commerce and Industry

The Lagos Chamber of Commerce and Industry has expressed cautious optimism regarding the marginal decline in Nigeria's inflation rate, stating that this development brings some relief to businesses and households, despite the presence of underlying risks that could potentially undermine the progress made so far.

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The Chamber's reaction came in response to the latest Consumer Price Index report, which revealed that headline inflation had moderated slightly to 15.06 per cent in February 2026, down from 15.10 per cent in January.

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A more significant drop was observed when compared to the 26.27 per cent recorded in February 2025, indicating a gradual easing of inflationary pressures, according to the LCCI.

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Dr Chinyere Almona, Director General of LCCI, noted that the slight moderation in inflation offers some respite to businesses and consumers that have struggled with rising costs and weakened purchasing power over the past year.

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From the perspective of the organised private sector, the moderation in inflation brings cautious optimism for businesses and households, as high inflation has significantly eroded purchasing power, increased production costs, and weakened consumer demand across several sectors, Dr Almona explained.

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However, the Chamber stressed that inflationary pressures remain persistent, citing the rise in month-on-month inflation to 2.01 per cent in February, following a contraction in January, which signals continued price pressures.

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Food inflation remains the dominant driver of inflation, reflecting structural inefficiencies in Nigeria's food supply chain, elevated logistics costs, and production constraints, according to the LCCI.

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The Chamber warned that a combination of domestic and global risks could potentially reverse recent gains, citing rising geopolitical tensions linked to the Iran conflict in the Middle East as a possible trigger for volatility in global energy markets.

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This volatility could have implications for fuel, transportation, and logistics costs, the LCCI noted, adding that expanding local refining capacity and increasing crude supply to domestic refineries could help Nigeria cushion such shocks.

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The Chamber also raised concerns over possible exchange-rate volatility driven by disruptions in global supply chains, warning that renewed pressure in the foreign exchange market could increase the cost of imported raw materials, machinery, pharmaceuticals, and food items.