Organised private sector groups have called on the Federal Government to urgently implement earlier announced credit schemes to tackle soaring costs of production and reduce inflation, which stood at 22.97 per cent in May 2025.

Inflation eased to 22.97 per cent from the April 2025 rate of 23.71 per cent, according to the National Bureau of Statistics.

In a virtual interview with The PUNCH, Director of the Centre for the Promotion of Private Enterprise, Muda Yusuf, observed that while the marginal drop in inflation was a positive signal, the operating environment remained harsh for businesses due to high energy and logistics costs, insecurity, and expensive funding.

Yusuf cautioned that inflation remained high, saying, “The deceleration in inflation is very marginal. Inflation at over 22 per cent is still on the high side.”

He attributed the slight easing of inflation to the lingering effects of past fiscal policy measures, such as tariff waivers on food and pharmaceutical inputs, as well as relative stability in the foreign exchange market.

However, he stressed that structural constraints continued to fuel inflationary pressure.

“We still have challenges with energy costs, logistics, the cost of funds, and insecurity. To tackle this, the Federal Government must accelerate the implementation of credit schemes already announced by the president. The credit call and credit guarantee scheme should be expanded to give Small and Medium Enterprises and large firms access to cheaper funds,” he explained.

Yusuf noted that cheaper credit would reduce production costs and help moderate inflation.

However, he warned that the ongoing conflict between Iran and Israel could push energy prices higher, possibly reversing the gains made in May.

“We hope there will be a de-escalation of the conflict so that a new wave of inflation doesn’t hit the economy,” CPPE’s director added.

Similarly, in a statement, the Lagos Chamber of Commerce and Industry welcomed the marginal decline in inflation but warned that risks remained.

The Director-General of LCCI, Chinyere Almona, described the 0.74 percentage point drop from 23.71 per cent in April to 22.97 per cent in May as “a positive, albeit modest, shift” after several months of rising inflation. However, she urged caution.

Almona stressed, “This improvement must be viewed cautiously, considering prevailing structural risks and looming food production and distribution shocks.”

She listed farmer-herder clashes, flooding, and rising global oil prices as potential triggers for food inflation in the coming months.

LCCI’s DG called for a coordinated policy approach to sustain disinflation and boost food supply. The chamber recommended continued monetary tightening by the Central Bank of Nigeria, improved access to credit for agriculture and manufacturing, and scaling up support for dry season farming and mechanised agriculture.

She also urged government investment in rural-urban logistics and prioritisation of spending on food, energy, and transport. “The government must eliminate leakages and strengthen social safety nets for vulnerable households,” Almona added.

NBS data showed Nigeria’s inflation slowed for the second consecutive month in May, dropping by 0.74 percentage points. Year-on-year food inflation also fell sharply from 40.66 per cent in May 2024 to 21.14 per cent. However, month-on-month food inflation ticked up to 2.19 per cent from 2.06 per cent in April.