How Nigeria Can Sustain Declining Inflation Rate - Economist

A renowned economist, Muda Yusuf, has said that Nigeria could sustain the declining inflation rate to make a positive impact on the masses.

Yusuf, who is the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), shared his view in a statement on Wednesday, October 15, following the release of the September inflation figure.

Pinnacle Daily earlier reported that headline inflation eased to 18.02 per cent in September from 20.12 per cent in August, sustaining a six-month downward trend.

The food inflation also eased sharply to 16.87 per cent in September from 21.87 per cent in August, and the core inflation to 19.53 per cent from 20.33 per cent.

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These developments, Yusuf said, suggest that inflationary pressures are gradually subsiding and that recent policy measures are beginning to yield results.

He maintained that the sustained disinflation trend is a welcome development and a sign of improving macroeconomic fundamentals.

The renowned economist, however, pointed out that the cost-of-living crisis remains acute, particularly for low- and middle-income households.

He said that despite the decline rate, 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.

He highlighted that the current disinflation has been shaped by a combination of structural and macroeconomic factors, including seasonality of agricultural output and moderated food prices, improved exchange rate stability, and better coordination between fiscal and monetary authorities.

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The renowned economist suggested that the next phase of reform must therefore prioritise welfare-focused and cost-reduction measures that deliver tangible relief to citizens.

He said a number of policy recommendations can help consolidate the current gains of disinflation, including enhancing food security and agricultural productivity, reducing logistics and transport costs, addressing energy and production costs, expanding access to affordable finance and maintaining exchange rate stability through credible market-based mechanisms.

“Business confidence is rising, but consumer confidence remains fragile. Policies that enhance productivity, stabilise prices, and reduce the structural cost of doing business will not only strengthen the disinflation trajectory but also foster inclusive and sustainable economic recovery.

“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,” Yusuf added.

A recent market survey by Pinnacle Daily at Kubwa Market, in the salons of Wuse, Abuja, revealed that daily survival for the citizens tells a different story as goods and services remain beyond the reach of many Nigerians.