The agriculture sector recorded a modest recovery, food inflation moderated significantly to 10.84% in December from 14.21% in November, reflecting a 3.36%-point decline. Similarly, core inflation fell by 1.96% to 18.63%, down from 20.59% in November. On a month-on-month basis, food inflation declined to -0.36%, indicating that food supply outpaced demand, resulting in temporary deflation in food prices.
This piece of information was given during ‘On the State of the Economy’ first press conference for the year, delivered by the President of the Lagos Chamber of Commerce and Industry (LCCI), Engr. Leye Kupoluyi. According to the chamber, the trend is primarily driven by falling prices of tomatoes, garri, eggs, potatoes, carrots, millet, vegetables, plantain, beans, wheat grain, grounded pepper, and fresh onions, among others. The group identified agriculture and agro-processing, manufacturing, infrastructure, energy, and human capital development as key growth drivers in 2026.
Unlocking these sectors would require decisive execution by scaling irrigation and agro-value chains, reducing power and logistics costs for manufacturers, accelerating infrastructure delivery through Pubilc-Private Partnerships (PPPs). The LCCI urged the government to prioritise increasing agricultural production, improving food distribution, and providing targeted support for critical supply chains while strengthening infrastructure, ensuring stable energy and transport costs, and maintaining exchange-rate stability would further ease food prices.
The chamber suggested that to improve foreign exchange earnings and reduce vulnerability to oil price volatility, Nigeria must move towards value-added, sustainable products and enhance export competitiveness by promoting agro-industrial value chains such as cocoa, cashew, palm oil, sesame by supporting export-oriented Small and Medium-sized Enterprises (SMEs) with finance, standards compliance, market access, and strengthening export promotion institutions and trade intelligence.
In 2025, the global economy demonstrated unexpected resilience amid significant and persistent headwinds. Heightened trade tensions marked by the re-emergence of protectionist measures and higher tariffs by major economies continued to weigh on global trade and investment flows. In addition, elevated policy uncertainty, ongoing geopolitical conflicts, and rising financial vulnerabilities contributed to a fragile global economic environment, saying these pressures were compounded by concerns over high debt levels, tight monetary conditions in parts of the world, and increased volatility in international markets, and that despite these challenges, global economic performance proved steadier than initially anticipated. Growth was supported by relatively strong consumer spending in several advanced economies, reflecting resilient labour markets and easing inflationary pressures.
Partial adjustments in global supply chains equally helped to mitigate disruptions. At the same time, a surge in investment and spending on artificial intelligence (AI) and digital technologies provided an essential boost to productivity, innovation, and economic activity across key sectors. Emerging and developing economies faced persistent challenges, including subdued investment, limited fiscal space, elevated debt burdens, and weak productivity growth. These structural constraints reduced their ability to respond effectively to external shocks and slowed progress toward long-term development goals.
Overall, last year was characterised by steady, but slow global growth, constrained by geopolitical tensions, trade fragmentation, and structural weaknesses, while the global economy avoided a sharp downturn, growth remained below pre-pandemic levels, highlighting the need for sustained reforms, enhanced international cooperation, and policies to boost investment, productivity, and inclusive growth. Looking ahead to 2026, both the World Bank and the International Monetary Fund (IMF) project moderate global growth, albeit slightly slower than in 2025, as the outlook reflects lingering structural constraints, ongoing geopolitical uncertainties, and a cautious global investment climate.
The LCCI informed that global economic growth is projected at around 2.7 to 3.3% in 2026, marginally below the estimated 2025 outcome and well under the pre-pandemic average of about 3.2%. Global inflation is projected to continue its downward trajectory, driven by softer demand conditions, easing supply-side pressures, and lower energy prices, while inflationary pressures are likely to remain a concern for households in many developing economies, where food and energy costs remain relatively high.
Furthermore, rapid advances in artificial intelligence (AI), the global push toward clean energy technologies, expansion of digital infrastructure, and rising demand for critical minerals could stimulate new investment, innovation, and productivity growth. The chamber also stated that after due consideration of the implications of the new tax laws for businesses, it called on companies to continue their operations and remain formal with the tax authorities as implementation commences, adding that “We see the process as an essential reform to update the fiscal framework, enhance competitiveness, and increase revenue. However, successful implementation requires clarity, transparency, collaboration, and business-focused execution to achieve economic benefits without stifling growth”.
In the final analysis, the LCCI reiterated the call on the government to tackle the many economic issues to deliver democratic dividends to Nigerian citizens and businesses. As a private-sector advocacy group with a mandate to promote the business community’s interests, the chamber would continue to engage relevant stakeholders as and when necessary on actionable recommendations for a thriving business community. As a foremost advocacy body for the private sector in Nigeria, the chamber restated its commitment to promoting a thriving, inclusive, and sustainable business environment.
