The Centre for the Promotion of Private Enterprise (CPPE) has welcomed the recent decline in Nigeria’s inflation rate to 18.02% in September 2025, citing improved macroeconomic policies and exchange rate stability as contributing factors.
According to a statement by the Chief Executive Officer of the CPPE, Muda Yusuf, this downward trend is a positive development, but sustained efforts are needed to address underlying structural issues driving cost-push inflation.
The CPPE noted that the drop in inflation is attributed to factors such as the seasonality of agricultural output, improved exchange rate stability, and better macroeconomic policy coordination.
He wrote, “Increased food supply during the harvest season has moderated food prices. Also, the base effect of inflation rates in 2024 averaged above 30 per cent, creating a high statistical base that supports a relative decline in current inflation readings; the naira has experienced relative stability — and mild appreciation in some months — helping to moderate imported inflation; macroeconomic policy improvements through tighter monetary policy, reduced fiscal leakages, and better coordination between fiscal and monetary authorities have contributed to easing inflationary pressures.
“These factors collectively explain the progress made on price moderation, though the underlying structural issues that drive cost-push inflation remain significant.”
However, the think tank emphasised that inflation remains high in key sectors, including food, transport, energy, and utilities.
To consolidate this progress, Yusuf recommended policy interventions aimed at enhancing food security, reducing logistics costs, addressing energy challenges, and promoting macroeconomic stability.
These measures, he argued, will help achieve a stable single-digit inflation rate and foster inclusive economic recovery.
Yusuf said, “However, the cost-of-living crisis remains acute, particularly for low- and middle-income households. The next phase of reform must therefore prioritise welfare-focused and cost-reduction measures that deliver tangible relief to citizens.
“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.”
