The Centre for the Promotion of Private Enterprise has praised the continued moderation of Nigeria’s inflation rate, however, cautioning that most households may not immediately feel the relief.

The National Bureau of Statistics reported that Nigeria’s headline inflation rate fell to 18.02 per cent in September 2025, down from 20.12 per cent in August.

In a policy brief on Wednesday, CPPE CEO Dr. Muda Yusuf said that while the easing of inflation is a positive development, its benefits remain largely out of reach for the average Nigerian family.

Yusuf said the disinflation trend signals growing effectiveness in the management of monetary, fiscal, and exchange rate policies.

“This disinflation trajectory is commendable. It suggests that inflationary pressures are gradually subsiding and that recent policy measures are beginning to yield results.

“However, inflation levels remain high and continue to erode household purchasing power, undermine consumer confidence, and weaken real incomes.

“The gains achieved so far must therefore be consolidated through decisive and well-targeted policy actions,” Yusuf said.

Yusuf credited the slowdown in inflation to a combination of structural and policy factors, citing the harvest season, stable exchange rates, base effects, and enhanced coordination between fiscal and monetary authorities.

He noted that the naira’s “relative stability,” coupled with mild appreciation in recent months, helped curb imported inflation, while higher agricultural output during the harvest season increased food supply.

However, the CPPE chief cautioned that inflationary pressures remain in critical sectors—including food, transport, energy, and utilities—which together make up nearly 90 percent of household spending.

He also highlighted insecurity in farming regions, high logistics costs, and energy inefficiencies as key barriers to further disinflation.

“High fuel prices, poor road infrastructure, and multiple levies across states inflate distribution costs.

“In the same vein, unreliable electricity supply and rising education and healthcare costs continue to strain household welfare,” he noted.

He urged a move away from short-term stabilization measures toward reforms focused on reducing costs and boosting productivity to sustain the downward inflation trend.

“Strengthening security in farming communities to improve food production. Investing in irrigation, storage, and mechanisation to ensure food supply stability.

“Rehabilitating transport corridors and reducing checkpoints to lower logistics costs. Promoting renewable and off-grid energy investments for productive sectors.

“Expanding affordable financing through development banks and credit guarantees.

“Reforming port and trade logistics to reduce bottlenecks and informal charges and sustaining exchange rate stability through credible, market-based mechanisms,” he said.