Buying energy nonetheless weak regardless of inflation easing – LCCI

Nigeria’s buying energy has not totally recovered regardless of the easing of headline inflation to fifteen.15 per cent in December 2025, the Lagos Chamber of Commerce and Trade has stated, warning that households and companies proceed to really feel the lingering results of previous worth shocks.

In a telephone interview with Sunday PidomNigeria, the President of the LCCI, Leye Kupoluyi, said that the newest inflation information signalled a transparent slowdown in inflationary momentum however didn’t quantity to a full decision of Nigeria’s inflation challenges.

He cautioned that inflation remained structurally excessive when considered over an extended interval. He stated the 12-month common headline inflation stood at 23.01 per cent, with core inflation at 23.49 per cent, city inflation at 23.46 per cent, and rural inflation at 21.93 per cent.

He stated, “The elevated averages replicate the cumulative influence of extended inflation over the yr, indicating that buying energy has not totally recovered and that previous worth shocks proceed to weigh on households and companies.”

In accordance with information launched by the Nationwide Bureau of Statistics, headline inflation eased to fifteen.15 per cent yr on yr in December 2025, down from 17.33 per cent in November 2025 and sharply decrease than 34.80 per cent recorded in December 2024.

Month-on-month inflation additionally declined to 0.54 per cent from 1.22 per cent, indicating that costs have been nonetheless rising, however at a a lot slower tempo.

Kupoluyi affirmed that the economic system was cooling after a interval of acute overheating, however remained fragile, with uneven easing of worth pressures throughout sectors.

He stated the moderation confirmed a shift from fast inflation to gradual disinflation moderately than outright worth declines. “These figures point out that costs are nonetheless rising, however at a considerably slower fee, reflecting enhancing financial dynamics moderately than a sudden financial transformation,” the LCCI president defined.

He described the sharp decline in meals inflation as essentially the most economically significant improvement, noting that meals inflation fell to 10.84 per cent yr on yr from 39.84 per cent.

Kupoluyi famous that falling costs of staples akin to tomatoes, garri, beans, grains, onions, and greens had eased stress on family budgets, particularly as meals contributed 6.06 share factors to headline inflation. He added that whereas the information justified measured optimism, it additionally referred to as for warning in policymaking.

Kupoluyi warned towards untimely coverage loosening, citing elevated common inflation and rising vitality prices, and urged sustained deal with meals provide chains, vitality reforms, and transport effectivity to consolidate disinflation beneficial properties.

Notably, the LCCI defended the NBS’s revised Shopper Worth Index methodology following the rebasing train. Kupoluyi described it as statistically sound and globally aligned.

He stated the choice to compute year-on-year inflation utilizing a twelve-month common base averted synthetic spikes that might have distorted financial evaluation and coverage responses.

He defined that considerations about revisions to earlier figures have been comprehensible however unavoidable in a rebasing train, including that the NBS had improved transparency by clearly distinguishing base results from underlying financial fundamentals.

In the meantime, The PidomNigeria had earlier reported that the Nationwide Affiliation of Small-Scale Industrialists welcomed the moderation in December inflation, linking it to authorities intervention in meals manufacturing and enhancements within the vitality sector.

The NASSI Vice President, Segun Kuti-George, stated the decline mirrored actual market modifications, citing decrease costs of staple meals and improved gasoline availability, which helped cut back transportation and manufacturing prices.

Kuti-George additionally pointed to developments within the vitality sector as a key issue behind the easing of inflation. He stated gasoline costs declined in December, supported by improved availability of petroleum merchandise, which helped to decrease transportation and manufacturing prices throughout the economic system.

“We had a drop within the worth of gasoline and different petroleum merchandise, and we additionally had availability. That made a significant distinction, as a result of usually throughout December, shortage pushes costs up, however this time it was the alternative,” he famous.