The Centre for the Promotion of Private Enterprise (CPPE), a leading organized private sector advocacy group in Nigeria, has charged the federal and sub-national governments in the country on the need to introduce policy measures to mitigate the current negative impact of rising energy prices on households and businesses in the country.
The group, in a Policy Brief on the February 2026 inflation rate issued on Sunday and signed by its Director/Chief Executive Officer, Dr. Muda Yusuf, noted that the Consumer Price Index (CPI) report presented a cautiously optimistic picture, with headline inflation easing marginally to 15.06% year-on-year, down from 15.10% in January and significantly lower than 26.27% a year earlier.
According to the Centre, the inflation rate reflects a continuing disinflation trend supported by base effects, monetary tightening and stabilization in macroeconomic conditions. However, this improvement is fragile and does not yet signal a decisive turnaround in price dynamics.
It maintained that the underlying inflation reality remained a concern as on a month-on-month basis, inflation accelerated to 2.01%, while food inflation surged to 4.69%, reversing the moderation recorded previously.
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The CPPE observed that meanwhile, food, transport and energy costs continued to rise at a pace that erodes purchasing power. Real incomes remain under severe strain, particularly for vulnerable and urban households, adding that disinflation, in this context, simply means a slower increase in prices—not a reduction in the cost of living.
The group pointed out that for businesses, especially SMEs, the operating environment remained extremely challenging as energy, logistics and raw material costs are elevated, while weak consumer demand limits pricing flexibility, resulting in a tightening squeeze on margins, declining profitability and rising business vulnerability, particularly in consumer-facing sectors.
To address the surging general price trend and make the environment conducive for individuals and businesses, the OPS group advocated urgent and coordinated policy measures by the governments to cushion the impact of rising energy prices and sustain the fragile disinflation gains.
Specifically, it advised the Federal Government prioritize the strengthening of domestic refining capacity through the provision of stable and reliable crude oil supply to local refineries, including the Dangote refinery, under supportive, predictable and, where feasible, concessionary terms, stressing that this is crucial for moderating domestic fuel prices, easing pressure on foreign exchange demand and enhancing the country’s energy security.
This is even as it tasked governments at all levels to also scale up investment in efficient and affordable public transportation systems as a key social protection measure as transport costs have become a major channel of inflation transmission, and easing this burden would provide immediate relief to households.
In addition, the CPPE charged the government to remove fiscal barriers to renewable energy adoption, noting that waivers on import duties and taxes on solar equipment, inverters and batteries will accelerate the transition to alternative energy sources and reduce dependence on expensive fossil-fuel-based self-generation.
The group also recommended that all maritime charges should be suspended to ease the escalating shipping cost amidst the sharp increase in marine insurance globally.
It further clarified: “More fundamentally, there is an urgent need to improve electricity supply. Reliable power remains the most effective long-term solution to Nigeria’s energy cost crisis. Strengthening generation, transmission and distribution infrastructure, alongside support for decentralized energy solutions, would significantly reduce production costs and inflationary pressures.
“In the short term, flexible and remote work arrangements should also be encouraged where feasible, as a means of reducing commuting costs and mitigating the welfare impact of rising fuel prices.
“Monetary and fiscal authorities must remain cautious and disciplined. The resurgence in monthly inflation and the emergence of external shocks suggest that premature policy easing would be risky. Oil revenue windfalls should be managed prudently, with emphasis on strengthening foreign exchange reserves and supporting productive sectors of the economy”, the OPS group added.
In its concluding remarks, the Centre stated that although the February CPI report signals some progress in the fight against inflation. While headline inflation is moderating, underlying price pressures remain strong, and the external environment is becoming increasingly adverse, the current geopolitical energy shock posed a significant risk to Nigeria’s inflation outlook, with the potential to reverse recent gains and deepen pressures on households and businesses.
It stressed that in the face of the current situation, a proactive, coordinated and forward-looking policy response had, therefore, become imperative to safeguard macroeconomic stability, protect citizens and support enterprise sustainability in an increasingly volatile global environment.
