Purchasing Power Still Weak Despite Inflation Easing to 15.15% – LCCI

The Lagos Chamber of Commerce and Industry has said that Nigeria’s purchasing power has not fully recovered despite the easing of headline inflation to 15.15 per cent in December 2025, warning that households and businesses are still grappling with the lingering effects of earlier price shocks.

Speaking in a phone interview with Sunday PUNCH, the President of the LCCI, Leye Kupoluyi, described the latest inflation figures as a positive signal of slowing inflationary momentum but cautioned that they do not represent a complete resolution of the country’s inflation problem.

Kupoluyi noted that while headline inflation has declined significantly, inflation remains structurally high when viewed over a longer horizon. He explained that 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.

“The elevated averages reflect the cumulative impact of prolonged inflation over the year, indicating that purchasing power has not fully recovered and that past price shocks continue to weigh on households and businesses,” he said.

Data from the National Bureau of Statistics showed that headline inflation fell to 15.15 per cent year on year in December 2025, down from 17.33 per cent in November and sharply lower than 34.80 per cent recorded in December 2024. Month-on-month inflation also slowed to 0.54 per cent from 1.22 per cent, indicating that prices are still rising, but at a much slower pace.

Kupoluyi said the figures point to gradual disinflation rather than outright price declines, adding that the economy remains fragile with uneven easing of price pressures across sectors. He identified the sharp drop in food inflation, which declined to 10.84 per cent from 39.84 per cent, as the most significant development, noting that falling prices of staple foods had eased pressure on household budgets.

He urged policymakers to avoid premature policy loosening and instead focus on strengthening food supply chains, improving energy reforms, and enhancing transport efficiency to sustain the gains achieved so far.