The Centre for the Promotion of Private Enterprise (CPPE) has warned that Nigeria’s progress in slowing inflation is under serious threat, as rising energy, food and transport costs begin to push prices up again, putting more pressure on households and businesses. In its reaction to the March 2026 inflation report released by the National Bureau …
Rising Costs Put Inflation Gains at Risk — CPPE Warns
The Centre for the Promotion of Private Enterprise (CPPE) has warned that Nigeria’s progress in slowing inflation is under serious threat, as rising energy, food and transport costs begin to push prices up again, putting more pressure on households and businesses.
In its reaction to the March 2026 inflation report released by the National Bureau of Statistics, the group said the latest figures show that inflation is rising again, especially on a month-to-month basis, even though the yearly trend had been improving.
Pinnacle Daily earlier reported that Nigeria’s headline inflation rose slightly to 15.38 per cent in March, while month-on-month inflation jumped sharply to 4.18 per cent, almost double what was recorded in February.
CPPE said this shows that the earlier slowdown in inflation is still weak and could easily be reversed.
“This development underscores the fragility of the disinflation process and raises concerns about renewed cost pressures in the economy,” the group said.
It explained that the main driver of the rising prices is the increasing cost of energy.
It noted that businesses across Nigeria depend heavily on petrol, diesel and gas to run their operations, transport goods and generate power, and when these costs rise, prices of goods and services also go up.
“The recent uptick in inflation is largely reflective of renewed energy price pressures,” CPPE said, adding that these costs quickly spread across the economy by increasing transport fares, food prices, and the cost of production and distribution.
The group said food and transport costs remain the biggest drivers of inflation, accounting for a large share of the pressure on prices.
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Food inflation stood at 14.31 per cent, while core inflation rose to 16.21 per cent, showing that price increases are widespread.
It warned that this trend is particularly harmful because food and transport are basic needs that people cannot avoid.
As prices rise, households are losing purchasing power and facing a higher cost of living.
“The dominance of food and transport in the inflation basket has profound welfare consequences,” CPPE said, noting that many Nigerians are becoming more vulnerable, especially in rural areas where inflation remains high due to challenges in farming and distribution.
The group also pointed to structural problems in the transport sector, where private operators dominate and have strong control over pricing.
It said the lack of proper regulation allows transport fares to rise quickly whenever fuel prices increase, making inflation worse.
“In an environment of rising fuel costs, this structure enables rapid and often disproportionate increases in transport fares,” CPPE said.
To address the problem, CPPE called on government at all levels to focus more on improving food production and transportation systems.
It stressed the need to support farmers through better security, improved infrastructure, access to finance, and modern farming methods, noting that increasing local food production is the best way to reduce food prices.
The group also urged the government to invest heavily in public transport, including buses and rail systems, to reduce the country’s dependence on costly and unregulated private transport.
“A more structured and efficient public transport system will significantly reduce inflationary pressures and improve welfare outcomes,” it said.
On monetary policy, CPPE warned against raising interest rates further, arguing that the current inflation is caused by rising costs, not excess money in the system.
“We therefore strongly caution against using the recent uptick in inflation as a basis for additional monetary tightening,” the group said, adding that higher interest rates would only hurt businesses, reduce investment, and slow economic growth.
CPPE maintained that Nigeria’s inflation situation remains fragile and requires urgent and targeted action.
“The policy response must therefore shift from a narrow focus on monetary tools to a broader strategy that addresses the structural drivers of inflation,” it said, warning that without action, the gains made in slowing inflation could be short-lived while Nigerians continue to face rising living costs.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X