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The recent uptick in Nigeria’s inflation rate has sparked fears that the country’s economic growth may be at risk. According to the National Bureau of Statistics, the country’s headline inflation rose to 24.23% in March 2025, up from February’s 23.18%.
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Members of the organised private sector, including the Manufacturers Association of Nigeria and Lagos Chamber of Commerce and Industry, have expressed concerns about the impact of high interest rates on manufacturers and the possibility of global trade disruptions leading to further inflation.
MAN Director-General Segun Ajayi-Kadir stated, “Rising interest rates posed a major financial burden, with commercial bank lending rates to manufacturers surging to 35.5% in 2024 from 28.06% in 2023.” He added that manufacturers’ finance costs totalled N1.3 , constraining investment and expansion plans
LCCI President Gabriel Idahosa worried that the increased inflation rate dimmed hopes of a reduction in the interest rate. He said, “With headline inflation rising again, the hope of seeing a reduction in the interest rate may go dim if the rising inflationary pressures are not controlled.”
ASBON President Dr Femi Egbesola warned that the rising inflation rate poses a serious threat to the real sector, saying, “To halt this upward trend, the government must take urgent steps to stabilise the exchange rate, reduce energy costs, and improve infrastructure to lower the cost of doing business.”
CPPE Director Dr Muda Yusuf identified high energy costs, forex volatility, and insecurity as key drivers of Nigeria’s persistent inflation. He called for comprehensive reforms to address these problems, stating, “The Nigerian economy is highly sensitive to exchange rate movements and also highly sensitive to energy prices.”
Yusuf advocated for urgent reforms across the power and oil and gas sectors, saying, “Improving power supply requires fixing challenges across the value chain, including gas supply, power generation, transmission, and distribution.” He also recommended a moderate review of electricity tariffs to boost liquidity and attract more investments.
The Organised Private Sector has urged the Federal Government to take urgent steps to stabilise the economy and ensure a more stable economic environment for the real sector to thrive
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Jonathan Nwokpor
