CPPE hails inflation moderation, warns gradual household impact
The Centre for the Promotion of Private Enterprise has lauded the ongoing moderation of Nigeria’s inflation rate, while also warning that many households may not immediately experience the benefits.According to the National Bureau of Statistics, Nigeria’s headline inflation rate decreased to 18.02 percent in September 2025, down from 20.12 percent in the previous month.
In a policy brief released on Wednesday, CPPE CEO Dr. Muda Yusuf expressed that although the reduction in inflation is a positive sign, its advantages are still largely inaccessible for the average Nigerian household.
Yusuf remarked that the downward trend in inflation indicates improved efficacy in managing monetary, fiscal, and exchange rate policies.
“This path of disinflation is commendable. It implies that inflationary pressures are slowly easing and that recent policy actions are starting to show positive effects.
“Nevertheless, inflation rates are still high and continue to diminish household purchasing power, weaken consumer confidence, and diminish real incomes.
“Therefore, the progress made thus far must be reinforced through targeted and decisive policy measures,” Yusuf added.
Yusuf attributed the drop in inflation to a mix of structural and policy elements, mentioning the harvest season, stable exchange rates, base effects, and improved collaboration between fiscal and monetary authorities.
He pointed out that the naira’s “relative stability,” along with a slight appreciation in recent months, has helped reduce imported inflation, while increased agricultural output during the harvest season boosted food supply.
However, the CPPE leader warned that inflationary pressures persist in key sectors—including food, transport, energy, and utilities—which collectively constitute nearly 90 percent of household expenditures.
He also emphasized the issues of insecurity in agricultural regions, elevated logistics costs, and inefficiencies in energy as significant obstacles to further disinflation.
“High fuel prices, inadequate road infrastructure, and various state levies increase distribution expenses.
“Similarly, erratic electricity supply and rising costs in education and healthcare continue to impact household well-being,” he remarked.
He called for a shift away from temporary stabilization strategies toward reforms aimed at lowering costs and enhancing productivity to maintain the downward trend in inflation.
“Enhancing security in agricultural areas to boost food production is essential. Investing in irrigation, storage, and mechanization will help ensure stable food supplies.
“Improving transport routes and minimizing checkpoints can decrease logistics expenses. Encouraging investments in renewable and off-grid energy for productive sectors is crucial.
“Expanding access to affordable financing via development banks and credit guarantees is necessary.
“Reforming port operations and trade logistics to alleviate bottlenecks and informal charges and ensuring sustained exchange rate stability through credible, market-oriented mechanisms is vital,” he concluded.
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