KEY POINTS
- Structural inflation pressures still hurt families.
- Food and transport costs remain elevated.
- Lasting relief requires deeper economic reforms.
Nigeria’s recent inflation downturn is offering less relief to households than headline figures suggest, according to the Centre for the Promotion of Private Enterprise. The warning follows new government data showing a sharp easing in October inflation.
The National Bureau of Statistics reported that headline inflation slowed to 16.05 percent in October, marking one of the steepest monthly declines this year. Yet the CPPE says structural inflation pressures continue to dilute any meaningful benefit for citizens.
Structural inflation pressures limit gains
CPPE chief executive Muda Yusuf welcomed the moderation but said families still feel little improvement. He argued that supply bottlenecks in food, transport, energy, housing, and essential services are keeping daily expenses high despite the data shift.
He noted that structural inflation pressures remain entrenched across sectors driving the bulk of household spending. These include food, transportation, housing, utilities, education, and health categories that account for 84 percent of Nigeria’s inflation basket.
Reforms needed to sustain disinflation
Yusuf said deeper structural reforms are essential to sustain disinflation. He urges stronger alignment between fiscal, monetary, and regulatory measures to drive improvements in food production, logistics, energy reliability, and general market efficiency.
He explained that the October moderation was supported by base effects, improved FX stability, and strengthening macroeconomic indicators. The CPPE noted that last year’s elevated inflation figure contributed significantly to this year’s statistical decline.
Yusuf said that the naira’s steadier performance, which is due to better FX liquidity and tighter monetary conditions, has helped lower the rate of inflation for imported goods. But he said that problems on the supply side are still making it harder for price relief to reach households.
He said that high logistics costs, electricity shortages, climate disruptions, insecurity in farming areas, and an aging farm labor are some of the main reasons why Nigerians aren’t seeing the benefits of dropping inflation.
Even though there are good signs, he warned that real improvements in welfare will only happen if the government takes action to ease underlying inflation pressures.
