The Centre for the Promotion of Private Enterprise (CPPE) has warned that rising petrol prices, driven by global oil shocks, could reverse Nigeria’s fragile progress in slowing inflation, calling for urgent government action to cushion the impact on households and businesses.
In its February 2026 inflation brief issued by its Chief Executive Officer, Muda Yusuf, on Sunday, March 22, the CPPE noted that headline inflation eased slightly to 15.06 per cent year-on-year, down from 15.10 per cent in January.
However, it cautioned that the improvement remains weak and could be short-lived.
“The improvement is fragile and does not yet signal a decisive turnaround in price dynamics,” the organisation said.
The group noted that on a month-on-month basis, inflation rose to 2.01 per cent, while food inflation jumped sharply to 4.69 per cent, highlighting persistent pressure on the cost of living.
It warned that escalating global tensions involving Iran, Israel and the United States have pushed crude oil prices above 100 dollars per barrel, triggering higher fuel costs locally.
According to the CPPE, the impact is already being felt through “higher petrol and diesel prices, increased transportation and logistics costs, rising production costs, renewed exchange rate pressures and escalating food prices.”
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To cushion the effects, the CPPE called for immediate policy measures, including boosting local refining capacity by ensuring a steady crude supply to domestic refineries.
It stressed that supporting facilities such as the Dangote refinery would help “moderate domestic fuel prices, ease pressure on foreign exchange and enhance energy security.”
The organisation also urged governments to expand affordable public transport systems to reduce commuting costs for citizens.
“Transport costs have become a major channel of inflation transmission, and easing this burden would provide immediate relief to households,” it said.
In addition, the CPPE recommended tax waivers on solar equipment and batteries to encourage alternative energy use and reduce dependence on costly fuel-powered generators.
It further called for the suspension of maritime charges to lower shipping costs and ease pressure on businesses.
The group emphasised that improving electricity supply remains the most effective long-term solution to Nigeria’s energy cost challenges.
“Reliable power would significantly reduce production costs and inflationary pressures,” it said.
The CPPE also advised the adoption of flexible and remote work arrangements to help workers cut commuting expenses amid rising fuel prices.
It urged monetary and fiscal authorities to remain cautious, warning that “premature policy easing would be risky” given rising monthly inflation and external shocks.
The organisation added that without coordinated and timely intervention, the current global energy crisis could worsen economic pressures on households and businesses and derail recent gains in inflation control.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
