Economic experts have called on the Federal Government to increase crude oil supplies to local refineries and expand support for agriculture as part of measures to reduce inflationary pressures in Nigeria.

The experts said improving domestic refining capacity, lowering production costs and boosting food output would help ease the financial burden on households and businesses.

They spoke in separate interviews with the News Agency of Nigeria (NAN) in Lagos following the latest inflation figures released by the National Bureau of Statistics (NBS).

Inflation slows but food prices remain a concern

The NBS reported that Nigeria’s headline inflation rate declined to 15.43 per cent in July 2026, continuing a recent trend of easing overall price increases.

The figure dropped from 15.91 per cent in June 2026 and was significantly lower than the 24.94 per cent recorded in July 2025.

However, food inflation remained a major concern, rising to 20.31 per cent year-on-year in July from 17.52 per cent in June, according to the latest Consumer Price Index (CPI).

Experts said the increase in food prices required targeted interventions in agriculture, energy and transportation.

Local refining key to reducing fuel costs

Dr Uju Ogubunka, former Executive Secretary of the Chartered Institute of Bankers of Nigeria (CIBN), said increasing crude oil allocation to local refineries would help reduce dependence on imported petroleum products.

He urged the government to prioritise facilities such as the Dangote Refinery and other indigenous refining companies to strengthen domestic fuel production.

According to him, reducing petroleum imports would conserve foreign exchange and help lower transportation costs, which contribute significantly to inflation.

“The government should accord priority to Dangote and other indigenous petrochemical plants to stop crude oil importation,” he said.

Ogubunka also called for stronger security measures in farming communities, saying insecurity remains a major obstacle to agricultural productivity.

He suggested expanding community policing and using technologies such as drones to protect farmers and encourage more young people to return to agriculture.

Farmers need more support

Dr Femi Oke, Secretary-General of the All Farmers Association of Nigeria, said high fuel prices have contributed to rising food costs by increasing transportation and production expenses.

He called for increased government support for agricultural inputs, saying current interventions were not enough to achieve food self-sufficiency.

“Although the government has been supporting farmers across the country, the volume is not adequate enough to achieve self-sufficiency,” he said.

Oke urged the government to increase funding for agriculture and encouraged state governments to invest in rural infrastructure.

He said poor road networks in farming areas contribute to post-harvest losses, especially during the rainy season.

Lower production costs needed

Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), said reducing the cost of production was essential to tackling inflation.

He called for improved electricity supply and affordable power for businesses and households.

According to him, better electricity availability would reduce reliance on petrol and diesel generators, allowing businesses to redirect resources into productive activities.

Yusuf also urged government authorities to pay closer attention to food inflation because of its impact on poverty levels and social stability.

He encouraged state governments to increase agricultural funding and consider transportation support measures to reduce the cost of moving goods.

Nigeria’s inflation challenges have been driven by several factors, including: Rising energy costs, transportation expenses,food supply disruptions,exchange rate pressures,production challenges.

Agriculture remains a key sector in Nigeria’s economy, but farmers continue to face challenges such as insecurity, high input costs, limited storage facilities and poor rural roads.

Increasing domestic refining capacity has also become a major policy focus as Nigeria seeks to reduce dependence on imported petroleum products.