The Centre for the Promotion of Private Enterprise (CPPE) has welcomed the continued moderation in Nigeria’s inflation rate, describing it as a positive signal of improving macroeconomic conditions and effective policy traction. According to the latest data, headline inflation eased to 18.02% in September 2025, down from 20.12% in August, sustaining the downward trend observed earlier in the year.
According to the statement signed by the Director/CEO of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, the month-on-month inflation also declined slightly from 0.74% to 0.72%, while food inflation dropped significantly from 21.87% to 16.87%. Core inflation moderated from 20.33% to 19.53%, indicating that inflationary pressures are gradually subsiding. CPPE noted that these gains reflect the impact of seasonal food supply, improved exchange rate stability, and tighter macroeconomic policies. However, the organization cautioned that inflation levels remain high and continue to erode household purchasing power, weaken real incomes, and dampen consumer confidence.
Despite the progress, CPPE highlighted persistent cost pressures in key sectors such as agriculture, transport, energy, housing, education, and healthcare—areas that collectively account for nearly 90% of household expenditure. These structural challenges continue to drive cost-push inflation and must be addressed through targeted interventions.
To consolidate the current disinflation momentum, CPPE recommends six strategic policy actions:
- Enhance food security through improved farming security, irrigation, and mechanization.
- Reduce logistics costs by rehabilitating transport corridors and streamlining inter-state movement.
- Address energy challenges via transitional support, renewable investments, and electricity sector reforms.
- Expand access to affordable finance for SMEs and productive sectors.
- Reform port and trade logistics to reduce inefficiencies and costs.
- Sustain macroeconomic stability through coordinated fiscal and monetary policies and credible exchange rate mechanisms.
CPPE emphasised that while business confidence is rising, consumer confidence remains fragile. The next phase of reform must prioritise welfare-focused and cost-reduction measures that deliver tangible relief to citizens. With consistency, coordination, and structural reforms, Nigeria can achieve a stable single-digit inflation rate over the medium term—anchoring growth, improving welfare, and restoring confidence in the economy.
