The Centre for the Promotion of Private Enterprise has cautioned that Nigeria’s cost of living could continue to climb despite the country’s GDP growth in Q3 2025.

The warning was issued in its latest policy brief, signed by CEO Dr. Muda Yusuf, according to Nairametrics.

Nigeria’s GDP expanded by 3.98 per cent year-on-year in Q3 2025, down slightly from the 4.3 per cent recorded in Q2, yet still signaling what the CPPE called a continued consolidation of macroeconomic stability.

The think tank linked the improved GDP performance to greater exchange-rate stability, easing inflation, stronger fiscal conditions, and growing investor confidence.

These gains, it noted, have boosted business activity across major sectors, especially services, ICT, construction, and finance.

Still, the CPPE cautioned that the social impact of ongoing reforms remains a major concern.

“Although disinflation is underway and some food and manufactured goods are easing in price, the cost-of-living crisis continues to weigh heavily on households,” the organisation noted.

The CPPE urged the Federal Government to deepen structural reforms and fast-track targeted investments to drive stronger and more inclusive economic growth.

The organisation noted that although the economy is on a “gradual but steady recovery path,” persistent structural constraints—especially in agriculture, manufacturing, trade, and housing—continue to undermine productivity, erode competitiveness, and intensify cost-of-living pressures for households.

“With continued reforms, targeted investments, and strengthened governance, Nigeria is well-positioned to deliver stronger economic outcomes in the months ahead,” the CPPE stated.

Services Sector: The services sector continued to anchor Nigeria’s economic expansion, accounting for 53 per cent of total GDP, supported by rising digital adoption, deeper financial inclusion, and improved business confidence.

Agriculture: The agricultural sector grew by 3.79 per cent, marking an improvement over Q2. However, it remains hampered by insecurity, poor rural logistics, low mechanisation, and weakening purchasing power.

Manufacturing: The manufacturing sector grew by just 1.25 per cent, one of the weakest performances of the quarter, weighed down by high energy and transport costs, expensive credit, heavy dependence on imported inputs, and persistent smuggling.

ICT: The ICT sector expanded by 5.78 per cent, maintaining its position as a key non-oil growth driver despite a slight dip from the previous quarter.

Real Estate: The real estate sector recorded a remarkable 89 per cent nominal expansion, fuelled by surging property prices. However, the CPPE cautioned that this trend is further eroding housing affordability in major urban centres.

Financial Services: Financial services remained the standout performer with 19.63 per cent growth, supported by rising economic activity, improved fiscal inflows, and stronger confidence in the financial system.

Trade: The trade sector grew by 1.98 per cent, but activity remained subdued due to high import costs, weak consumer demand, and ongoing import-substitution policies.

To sustain growth and reduce pressures on businesses and households, the CPPE recommended the following priority policy actions:

Reduce structural bottlenecks: Improve power supply, cut logistics costs, enhance port efficiency, and accelerate transport infrastructure delivery.

Mitigate the cost-of-living crisis: Roll out targeted social support programmes and tackle sector-specific challenges in agriculture, transport, energy, and pharmaceuticals.

Boost agricultural productivity: Strengthen security in farming communities, expand irrigation, improve rural roads, and support greater mechanisation.

Rebuild manufacturing competitiveness: Provide concessionary financing, curb smuggling, lower import duties on industrial inputs, and reinforce supply-chain systems.

Enhance housing affordability: Reform land administration processes and deepen access to mortgage financing.

In Q2 2025, the NBS reported that Nigeria’s GDP expanded by 4.23 per cent year-on-year in real terms, outperforming the 3.48 per cent growth recorded in the same period in 2024.