The Centre for the Promotion of Private Enterprise (CPPE) has described Nigeria’s June 2026 inflation report as evidence of improving macroeconomic stability, while warning that the renewed surge in food prices continues to pose the greatest threat to household welfare and the country’s broader economic recovery.
https://www.digital.zenithbank.com/ZEQ/ZEQ-jan-2026/index.html#p=1According to the National Bureau of Statistics (NBS), headline inflation eased marginally from 15.93 percent in May to 15.91 percent in June 2026, while month-on-month inflation moderated from 1.75 percent to 1.66 percent, indicating that headline inflation has largely stabilized.
However, in its latest policy brief, CPPE noted that the moderation in headline inflation masks growing concerns over food prices, which remain the principal driver of Nigeria’s cost-of-living crisis.
Food inflation rose from 17.43 percent in May to 17.52 percent in June on a year-on-year basis, while month-on-month food inflation climbed sharply from 2.98 percent to 3.75 percent, representing the strongest monthly increase in several months.
The Chief Executive Officer of CPPE, Dr. Muda Yusuf, said the resurgence in food inflation underscores the need for urgent structural interventions to tackle supply-side constraints affecting agricultural production and food distribution.
“While it is encouraging that headline inflation has stabilized and core inflation continues to moderate, the renewed escalation in food prices remains a serious concern. Food inflation has the greatest impact on households because it directly affects purchasing power, poverty levels, food security and the overall welfare of Nigerians,” he said.
The Centre observed that sustained moderation in food prices is essential to ensuring that the benefits of ongoing economic reforms translate into improved living standards and stronger public confidence.
CPPE also welcomed the continued easing of core inflation, describing it as evidence that exchange-rate stability and improved macroeconomic conditions are beginning to moderate imported inflation and other non-food price pressures.
The report further highlighted persistent inflationary pressure in urban centres, where urban inflation stood at 16.08 percent, exceeding the national headline inflation rate of 15.91 percent, while month-on-month urban inflation increased from 1.99 percent to 2.13 percent.
According to CPPE, rising urban inflation may be linked partly to increasing migration from insecurity-affected rural communities into cities, placing additional pressure on housing, transportation, utilities and other essential services.
The Centre stressed that restoring security in farming communities would not only improve agricultural output but also reduce migration-induced inflationary pressures in urban areas.
Structural Challenges Require Structural Solutions
CPPE maintained that Nigeria’s inflation challenge remains predominantly structural rather than monetary.
According to the Centre, the renewed increase in food inflation reflects persistent supply-side constraints, including insecurity, high transportation and logistics costs, elevated energy prices, rising fertilizer costs, supply-chain disruptions and imported inflation arising from recent geopolitical developments.
The policy brief noted that food, transportation, housing, utilities and energy collectively account for approximately 72 percent of current inflationary pressures, suggesting that government interventions should focus on these sectors for maximum impact.
CPPE commended the Honourable Minister of Finance and Coordinating Minister of the Economy for establishing a Ministerial Advisory Committee to recommend practical solutions to Nigeria’s structural economic challenges and the rising cost of living.
According to the Centre, the initiative appropriately recognizes that macroeconomic stabilization alone cannot deliver inclusive growth unless complemented by reforms that improve productivity, lower production costs and enhance household welfare.
Priority Areas for Government
CPPE urged the Federal, State and Local Governments to prioritize:
- Restoring security in farming communities.
- Expanding irrigation and all-season agriculture.
- Accelerating agricultural mechanization.
- Promoting technology adoption across agriculture.
- Improving access to affordable agricultural finance and inputs.
- Reducing post-harvest losses through better storage infrastructure.
- Lowering transportation and logistics costs across agricultural value chains.
- Making agriculture more technology-driven and commercially attractive to encourage greater youth participation.
The Centre also called on government to sustain exchange-rate stability and deepen domestic petroleum refining to reduce dependence on imported fuel, moderate imported inflation and strengthen macroeconomic resilience.
MPC Expected to Hold Interest Rates
Looking ahead, CPPE stated that the June inflation figures do not justify further monetary tightening.
The Centre argued that with headline inflation stabilizing, core inflation moderating and inflationary pressures remaining largely structural rather than demand-driven, the appropriate policy response would be to maintain the current monetary policy stance.
CPPE therefore expects the Monetary Policy Committee (MPC) of the Central Bank of Nigeria to retain existing policy rates at its next meeting while working closely with fiscal authorities to accelerate structural reforms.
According to the Centre, expanding food production, improving logistics, reducing energy and production costs, lowering debt service costs, strengthening domestic value chains and enhancing productivity remain the most sustainable pathway to lower inflation, stronger economic growth and improved living standards for Nigerians.
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