The Centre for the Promotion of Private Enterprise (CCPE), a leading private sector advocacy group in Nigeria, has canvassed a multidimensional initiative for the Federal Government and the National Bureau of Statistics (NBS) to undertake in order to enhance the nation’s Consumer Price Index (CPI) survey processes, improve public confidence in the outcomes and usage for planning and economic development in the country.
The Centre, in its Policy Brief issued and signed by its Chief Executive, Dr. Muda Yusuf, on the December 2025 Inflation rate , which declined to 15.15%, extending the disinflation trend over the past 12 months, noted that the moderation was driven largely by falling food prices, which provided some relief to households.
It noted that the recent changes in the methodology for computing the Consumer Price Index (CPI) had raised concerns about the credibility of the inflation data, without materially affecting the disinflation trend over the past 12 months.
The CPPE observed that while inflation was easing, the structural drivers of high costs, especially energy, transportation, logistics, and insecurity, remained firmly in place.
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According the OPS advocacy group, at the same time, the sharp decline in food prices has created serious concerns about the sustainability of farmers’ investments, as their returns are being eroded.
In view of the foregoing, it maintained that addressing both affordability for consumers and investment viability for producers had now become an urgent policy priority for the government.
Taking a comprehensive look at the key highlights of the CPI in the month under review, which showed that Headline inflation stood at 15.15%; month-on-month inflation slowed to 0.54%, down from 1.22% in November; Food inflation dipped to 10.84%, reflecting 0.36% deflation; the Core inflation rose to 18.63%, higher than 18.04% in November; and the major inflation drivers comprised Food & beverages, housing, restaurants, transportation, and fuel, accounting for 72% of inflation pressure, the CPPE noted that when analyzed from Macroeconomic perspective, the Inflation was moderating, but data credibility is weakening.
It pointed out that the decline in inflation suggested that macroeconomic stabilization efforts were beginning to take effect, noting, however, that the adjustments to CPI computation parameters have created credibility gaps, undermining the confidence of investors, analysts, businesses, and policymakers.
To partly address these problems, the Centre advocated the need for the government and the NBS to strengthen the technical capacity and analytical rigour to rebuild trust in statistical outcomes.
On Food Inflation, which has been the single biggest contributor to easing the cost-of-living pressures on Nigerian households, the OPS group advised the government to sustain agricultural supply and reduce logistics costs to maintain this momentum, adding that despite exchange-rate stability, core inflation increased to 18.63% and that this is inconsistent with macroeconomic fundamentals and suggests deeper structural pressures or possible statistical inconsistencies, hence the need for the NBS to review and improve CPI methodology to ensure alignment with economic realities.
With the Inflation pressure highly concentrated food, housing, utilities, fuel, and transportation, the Centre urged the government to target cost reductions in these sectors to accelerate disinflation and improve affordability.
Noting further that persistent structural challenges continue to drive inflationary pressure due to high energy and fuel costs, rising transportation and logistics expenses, insecurity affecting agricultural output, high interest rates and cost of credit, and import duties on key production inputs, the CPPE stressed that tackling these legacy constraints remained essential for making the disinflation trend sustainable.
The Centre further observed that while consumers benefit from lower food prices, farmers continued to face declining incomes amid rising input costs, thereby discouraging agricultural investment and threatening long-term food security.
To tackle the challenges, it urged the government adopt policies that would reduce the cost of fertilizers, agrochemicals, and machinery; expand irrigation and mechanization support; and introduce a minimum guaranteed pricing framework for staple crops
The OPS group expressed optimism that such measures would restore the confidence of farmers in profitability prospects while sustaining affordability for households.
This is even as it stressed that sustaining the inflation decline required closer alignment between fiscal and monetary authorities. Structural interventions must complement monetary tightening to reduce inflation without weakening production.
On the way forward to sustain the moderation of the nation’s inflation, the CPPE specifically advised the government to intensify efforts to reduce the cost of food, transportation, and utilities; address insecurity to boost agricultural supply; and reduce input costs for farmers.
Other remedial strategies the Centre advocated to consider as policy options are that the government should provide guaranteed minimum pricing for key crops; lower import duties on manufacturing inputs; and strengthen fiscal–monetary policy coordination
For the NBS, it charged the statistics agency to strengthen institutional capacity for data accuracy and quality assurance; improve technical and analytical rigour in CPI computation; and rebuild public and investor confidence in statistical outcomes.
In its conclusive policy brief on the December 2025 Inflation, the CPPE clarified: “The December 2025 inflation data confirms that Nigeria’s inflation is moderating, driven largely by food price declines. This is a positive development for households and economic stability.
“However, sustaining this progress requires urgent action to address structural cost pressures, support agricultural producers, and restore confidence in inflation data.
“Without these measures, the gains in affordability and price stability may not endure”, it stressed.
