The Centre for the Promotion of Private Enterprise (CPPE) has called on the fiscal and monetary authorities to prioritise reforms to sustain Nigeria’s disinflation trend.
Its Chief Executive Officer, Muda Yusuf, made the call in a statement on Tuesday, September 16.
He said, “To consolidate and build on these gains, a coherent mix of fiscal, monetary, and structural reforms will be critical.
He suggested that the authorities maintain macroeconomic stability by continuously stabilising the exchange rate, deepening fiscal consolidation to curb deficits, and managing public debt prudently.
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They should also address structural bottlenecks, including collaborating with state governments to remove productivity constraints and investing in infrastructure, logistics, and security to improve output and reduce costs.
Yusuf further suggested that strengthening policy coordination is also on the call to moderate money supply growth through tighter monetary-fiscal coordination and align fiscal, tax, and trade policies to reduce production and operating costs across sectors.
He added that enhancing food security can help sustain the implementation of targeted interventions such as input subsidies, storage facilities, and mechanisation programmes to lower food production costs and ease pressure on household budgets.
“If these measures are sustained, Nigeria could witness a further decline in inflation, a gradual rebound in consumer confidence, and stronger foundations for inclusive and sustainable economic growth,” the CPPE boss maintained.
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He noted the factors driving disinflation to include the base effects from the unusually high inflation rates recorded in 2024, the stabilisation of the foreign exchange market, which has reduced imported inflation and improved business confidence, as well as improved agricultural production from sub-national government interventions, helping boost food supply and contain price spikes.
Pinnacle Daily reported that Nigeria’s headline inflation continued to decelerate for the fifth consecutive time in August, signalling a steady return to price stability.
It eased to 20.12 per cent in August from 21.88 per cent in July, representing a 1.76 percentage point decline.
On a month-on-month basis, inflation slowed sharply, with prices rising by just 0.74 per cent in August compared with 1.99 per cent in July, one of the lowest sequential increases in over a year.
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The main contributors to inflation in August remained largely unchanged and were food and alcoholic beverages, restaurant and accommodation services, and transport and energy costs.
The latest inflation report from the National Bureau of Statistics (NBS) also indicated that food inflation moderated to 21.87 per cent in August from 22.74 per cent in July, while core inflation (excluding food and energy) declined to 20.33 per cent from 21.33 per cent, indicating broad-based easing in price pressures.
“This sustained moderation suggests that Nigeria is gradually regaining macroeconomic stability. Business confidence has improved, as shown by the NESG–Stanbic IBTC Business Confidence Monitor, which has posted six consecutive months of positive readings in 2025,” Yusuf said.
He, however, noted that consumer confidence remains fragile due to persistently high food prices and weak purchasing power.
“Encouragingly, consumer pessimism is gradually easing, suggesting that households are beginning to adjust expectations as inflation slows,” he added.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
