…Tasks Govt On Remedial Policy Measures
The Centre for the Promotion of Private Enterprise (CCPE) a frontline organized rpviate sector advocacy group in Nigeria, has expressed serious concern over the recent upsurge in the nation’s inflation general price level pressures, despite the modest gains of the government’s reforms in the past few months.
The group, in a Brief Note issued on the nation’s March 2026 headline inflation published by the National Bureau of Statistics on Wednesday and signed by its Chief Executive Officer, Dr. Muda Yusuf, noted that while recent months reflected a gradual moderation in year-on-year inflation, the latest data signals a worrying resurgence of inflationary pressures, particularly on a month-on-month basis.
The Centre stated that the headline inflation edged up to 15.38% in March 2026, while month-on-month inflation accelerated sharply to 4.18%, nearly double the level recorded in February, adding that this development underscores the fragility of the disinflation process and raises concerns about renewed cost pressures in the economy.
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According to the OPS advocacy group, while energy costs remained the primary cause of the inflationary pressures with the attendant negative implications for food and transport costs for the citizens’ wellbeing, there is urgent need for the government to proactively respond to the ugly development through remedial policy measures.
The CPPE maintained that the latest CPI data clearly showed that food and transportation-related costs remained the most significant contributors to inflation, accounting for a substantial proportion estimated at about 70% of inflationary pressures when direct and indirect effects are considered.
It noted that in the statistics agency’s report, Food inflation stood at 14.31% year-on-year, while core inflation, which captures broader price pressures, rose to 16.21% , pointing out that hese figures are particularly troubling given their direct impact on household welfare.
In addition, the Centre observed that transportation costs, which are heavily influenced by fuel prices and logistics inefficiencies, continued to exert strong upward pressure on food, goods and services prices nationwide, thereby amplifying inflation.
On the welfare implications of the pressures for the citizenry, the CPPE explained that the dominance of food and transport in the inflation basket had profound welfare consequences as they are non-discretionary expenditures, meaning households cannot easily adjust consumption in response to rising prices.
It listed the welfare implications of the rising food costs as including erosion of real incomes and purchasing power, rising cost of living pressures on households, increased poverty and vulnerability, particularly in rural areas, and heightened inequality across regions and income groups
The CPPE noted that the situation was even more concerning given that rural inflation remains elevated, reflecting structural challenges in agricultural productivity and distribution systems.
On public transportation deficit and market power concerns, it pointed out that a major structural concern highlighted by the inflation dynamics is the dominance of the private sector in public transportation, especially road transport.
The OPS advocacy group clarified that this dominance created significant vulnerabilities for citizens as transport operators are often highly unionized, possess considerable pricing power, and there is limited regulatory restraint on fare adjustments
The CPPE observed that in an environment of rising fuel costs, this structure enables rapid and often disproportionate increases in transport fares, which are quickly transmitted across the economy.
It further clarified: “The March 2026 CPI report highlights a critical development in Nigeria’s inflation trajectory, where the earlier gains in disinflation are now being threatened by a resurgence of cost-driven pressures, particularly from energy, food and transportation.
“This emerging trend suggests that while inflation had been moderating on a year-on-year basis, underlying structural vulnerabilities remain largely unresolved, with recent month-on-month increases pointing to renewed price momentum”, the CPPE added.
On the remedial strategies the government needed to adopt to mitigate the negative impact of the inflationary pressures on individuals and business in the country, it maintained that the situation called for urgent and targeted policy responses, as failure to address these supply-side drivers could reverse the fragile stability achieved and deepen the cost-of-living challenges facing households and businesses.
It advocated: “While disinflation trends remain evident on a year-on-year basis, the resurgence of monthly inflation pressures signals that macroeconomic stability is still fragile.
“The policy response must therefore shift from a narrow focus on monetary tools to a broader strategy that addresses the structural drivers of inflation, particularly in energy, food and transportation.
“Without decisive action in these areas, the gains recorded in inflation moderation may prove temporary, while households and businesses continue to grapple with significant cost pressures” the OPS advocacy group added.
