Nigeria’s households and businesses are still grappling with weak purchasing power, even as headline inflation eased to 15.15 per cent in December 2025, according to the Lagos Chamber of Commerce and Industry (LCCI). The slowdown marks a moderation in price pressures but does not signal a full recovery in the economy, the chamber warned.
In a phone interview, President Leye Kupoluyi highlighted that despite the monthly decline in inflation, structural inflationary pressures remain elevated. The 12-month average headline inflation stood at 23.01 per cent, with core inflation at 23.49 per cent, urban inflation at 23.46 per cent, and rural inflation at 21.93 per cent, reflecting the lingering effects of past price shocks on Nigerian households and businesses.
Brandspur Banking News Desk reports that the moderation of inflation is most evident in the food sector, where prices of staples such as tomatoes, garri, beans, grains, onions, and vegetables fell sharply. Food inflation declined to 10.84 per cent year on year, down from 39.84 per cent in December 2024, easing the strain on household budgets and contributing significantly to the overall headline moderation.
Kupoluyi noted that while the economy is cooling after a period of overheating, price pressures remain uneven across sectors. He described the trend as a gradual disinflation rather than a full reversal, with prices continuing to rise but at a slower pace. The LCCI president also cautioned against premature loosening of policy, highlighting the need for sustained attention to food supply chains, energy sector reforms, and transportation efficiency to consolidate disinflation gains.
The chamber defended the National Bureau of Statistics’ revised Consumer Price Index methodology, following a rebasing exercise. Kupoluyi explained that the use of a twelve-month average avoids artificial spikes and provides a more accurate reflection of underlying economic conditions. He emphasised that transparency in distinguishing base effects from fundamentals improves policymaking and economic analysis.
The easing of inflation has been welcomed by industry groups such as the National Association of Small-Scale Industrialists (NASSI), which linked the moderation to government interventions in food production and improved energy supply. NASSI Vice President Segun Kuti-George said declining fuel prices and enhanced petroleum availability in December helped reduce production and transportation costs, contributing to lower overall price pressures.
Despite these improvements, the LCCI maintains that Nigerian consumers are still recovering from cumulative inflationary shocks over the past year, with purchasing power yet to return to pre-inflation levels. Policymakers and businesses are being urged to remain cautious while leveraging ongoing reforms to strengthen economic resilience.
