The Centre for the Promotion of Private Enterprise says Nigerian households are yet to feel any relief from the easing inflation rate, citing deep-rooted structural challenges.
This comes after the National Bureau of Statistics announced on Monday that headline inflation fell to 16.05 per cent in October.
Reacting to the decline in a statement, the chief executive officer of the CPPE, Muda Yusuf,
hailed the sharp moderation in inflation as a major milestone for macroeconomic stability.
“However, the full welfare benefits are yet to be sufficiently felt by households due to persistent structural constraints—especially in food supply, transportation, energy, housing, and essential services,” he said.
Yusuf said that for disinflation to translate into real relief for households, Nigeria must pursue deliberate and sustained reforms across critical sectors.
He added that with better coordination of monetary, fiscal, and structural policies, the current disinflation trend can be strengthened, broadened, and sustained.
Yusuf noted that the drop in headline inflation was largely supported by base effects, a more stable exchange rate, and improving macroeconomic fundamentals.
“Similar moderation was seen across food and core inflation indices. However, inflationary pressures remain elevated in critical household sectors—including food, transportation, housing, utilities, education, and health—which jointly account for 84% of inflation.
“Persistent structural weaknesses such as high logistics costs, energy challenges, security concerns in food-producing areas, and climate-related disruptions continue to constrain supply and limit the welfare gains of disinflation.
“This policy brief outlines the inflation trends, identifies underlying pressures, and proposes targeted interventions to consolidate disinflation while addressing root causes of cost escalation,” he said.
Yusuf stated that Nigeria’s macroeconomic environment “continued to stabilise in October, as evidenced by the sharp slowdown in the inflation rate.”
Yusuf explained that the elevated inflation level in October of last year contributed to the statistical drop in year-on-year inflation.
“This base effect was a major contributor to the October 2025 outcome,” Yusus noted.
