The Lagos Chamber of Commerce and Industry (LCCI) has warned Nigerian businesses to brace for higher interest rates in 2025 as inflation continues to surge, exacerbating economic challenges.
In response to the latest inflation figures from the National Bureau of Statistics (NBS), LCCI Director-General Dr. Chinyere Almona expressed deep concern over the mounting pressures on businesses. With headline inflation hitting a 26-year high of 34.60% in November, Almona highlighted its impact on consumer spending and operating costs, warning of even more difficult times ahead.
“Persistent inflation, coupled with the Central Bank’s inability to reduce currency in circulation and the upcoming high-spending festive season, will drive interest rates higher,” Almona stated. She emphasized that rising food and core inflation would erode disposable income, reducing demand for goods while businesses grapple with increased costs and shrinking profits.
Despite the grim outlook, Almona called on the Federal Government to stay committed to its economic reforms, noting their potential to stabilize key indicators like inflation, interest rates, and the exchange rate. She urged better coordination to boost oil production, attract foreign investments, and defend the naira.
Almona also underscored the importance of improving security through technology, intelligence gathering, and multi-level policing to make farmlands safe and curb food inflation. “The renewed fight against terrorism and kidnapping must be sustained with more funding,” she added.
The NBS report revealed a sharp rise in inflation, with food inflation climbing to 39.93% year-on-year in November, driven by surging prices of staples like yam, maize, rice, and vegetable oil. Core inflation also rose to 28.75%, reflecting a broader cost-of-living crisis.
As businesses brace for 2025, the LCCI’s warning underscores the urgency for sustained reforms and coordinated efforts to mitigate inflation’s crushing
