Source: Tribune Online
The Lagos Chamber of Commerce and Industry (LCCI) has alerted Nigerian businesses to prepare for higher interest rates in 2025, as surging inflation continues to deepen the country’s economic difficulties.
Reacting to the latest inflation data from the National Bureau of Statistics (NBS), LCCI Director-General, Dr. Chinyere Almona, expressed serious concern about the escalating pressures on businesses. With headline inflation reaching a 26-year peak of 34.60% in November, Almona highlighted its detrimental effects on consumer purchasing power and operational expenses, warning that businesses are likely to face even tougher challenges ahead.
“Persistently high inflation, combined with the Central Bank’s inability to significantly reduce currency in circulation and the elevated spending associated with the festive season, will push interest rates even higher,” Almona stated. She stressed that the surge in food and core inflation would weaken disposable incomes, curtailing demand for goods while businesses struggle with rising costs and declining profitability.
Despite the bleak forecast, Almona urged the Federal Government to remain steadfast in implementing economic reforms, emphasizing their potential to stabilize critical economic indicators such as inflation, interest rates, and the exchange rate. She also called for improved policy coordination to enhance oil production, attract foreign investments, and strengthen the naira.
Almona further highlighted the necessity of improving national security through technological advancements, intelligence operations, and multi-level policing to secure farmlands and curb rising food inflation. “The intensified campaign against terrorism and kidnapping must be maintained with increased financial support,” she added.
The NBS report revealed a significant spike in inflation, with food inflation surging to 39.93% year-on-year in November, driven by escalating prices of key staples such as yam, maize, rice, and vegetable oil. Core inflation also rose to 28.75%, underscoring the broadening cost-of-living crisis.
As businesses prepare for 2025, the LCCI’s cautionary note underscores the pressing need for sustained reforms and collaborative strategies to alleviate the severe impacts of inflation.
