The Centre for the Promotion of Private Enterprise has cautioned that recent adjustments to Nigeria’s Consumer Price Index methodology could have introduced credibility concerns, potentially weakening confidence in the country’s official inflation figures.

The warning was contained in a policy brief signed by CPPE’s Chief Executive Officer, Dr. Muda Yusuf, on Sunday.

According to the CPPE, although inflation has followed a disinflationary path over the past year, changes to key parameters used in computing the CPI have triggered skepticism among investors, analysts, businesses, and policymakers.

The organisation emphasised that inflation data is critical to economic decision-making, shaping monetary policy, fiscal planning, investment choices, wage negotiations, and business pricing.

CPPE added that the recent changes to the CPI methodology have heightened concerns, stressing that even accurate data risks losing credibility and relevance if stakeholders doubt the process by which it is generated.

“However, adjustments to CPI computation parameters have created credibility gaps, undermining the confidence of investors, analysts, businesses, and policymakers,” the organisation stated.

“Recent changes in the methodology for computing the Consumer Price Index (CPI) have raised concerns about the credibility of the inflation data. Although this has not materially affected the disinflation trend over the past 12 months.”

The group underscored that preserving confidence in official statistics is essential for sound policymaking and sustained market trust.

Recall the National Bureau of Statistics last week reported a sharp decline in Nigeria’s headline inflation to 15.15 per cent in December 2025, following a review of the inflation measurement methodology.

According to the CPI figures, the index increased to 131.2 points in December from 130.5 points in November, reflecting a moderation in the pace of price increases across the economy.

The NBS explained that the December figures were influenced by a methodological adjustment arising from the rebasing of the CPI.

Under the revised framework, year-on-year inflation and its sub-indices are now computed using a twelve-month index reference period, with the average CPI for 2024 rebased to 100, instead of relying on a single-month reference base.

CPPE noted that credible inflation data is fundamental to economic planning and market behaviour, warning that any perceived inconsistencies could have far-reaching economic implications.

The group stressed that inflation figures shape the decisions of policymakers, investors, and businesses, while confidence in official data underpins wage negotiations and pricing strategies across the economy.