The Centre for the Promotion of Private Enterprise (CPPE), a leading private sector advocacy organization in Nigeria, on Tuesday described the sustained downward trajectory of the nation’s headline inflation over the past few months as a desirable phenomenon with great potential for macroeconomic stability and improved performance of the economy.
In a Policy Brief issued by the Director/Chief Executive Officer of the advocacy group, Dr. Muda Yusuf, circulated to our correspondent, the Centre maintained that to transform the potential benefits of the slowing general price level to concrete gains, the government should prioritize some policies urgently required to strongly position the nation’s economy on the path of sustainable growth.
The CPPE noted that Nigeria’s headline inflation continued its downward trajectory for the fifth consecutive month to 20.12% in August this year, down from 21.88% in July, signalling a steady return to price stability.
Based on the data from the National Bureau of Statistics (NBS), the Centre stated that month-on-month, inflation also slowed sharply, with prices rising by just 0.74% in August compared with 1.99% in July, representing one of the lowest sequential increases in over a year.
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It largely attributed the main contributors to inflation in the month under review, as had been the case over the past few months, to Food and alcoholic beverages, Restaurants and accommodation services, and Transport and energy costs
Specifically, the CPPE maintained that the Food inflation moderated to 21.87% from 22.74% in July, while core inflation (excluding food and energy) declined to 20.33% from 21.33%, indicating broad-based easing in price pressures.
According to the OPS advocacy organization, this sustained moderation suggests that Nigeria is gradually regaining macroeconomic stability even as business confidence has improved, as reflected in the recently published NESG–Stanbic IBTC Business Confidence Monitor, which has posted six consecutive months of positive readings in 2025.
It pointed out, however, that consumer confidence remained fragile due to persistently high food prices and weak purchasing power, noting that encouragingly, consumer pessimism is gradually easing, suggesting that households are beginning to adjust expectations as inflation slows.
The CPPE attributed the key drivers of disinflation in the economy over the past few months to three factors, namely the Base effects from the unusually high inflation rates recorded in 2024; Stabilization of the foreign exchange market, which has reduced imported inflation and improved business confidence; and Improved agricultural production from sub-national government interventions, helping boost food supply and contain price spikes
It maintained that to consolidate and build on these gains, a coherent mix of fiscal, monetary, and structural reforms will be critical to ensure macroeconomic stability, address structural bottlenecks, strengthen policy consolidation, and enhance food security in the country.
Specifically, the Centre stated that to maintain macroeconomic stability, government should sustain monetary policy measures required to stabilize the Naira exchange rate in the foreign exchange (FX) markets, and deepen fiscal consolidation to curb deficits and manage public debt prudently
Also, it stressed that to address structural bottlenecks in the economy, the Federal Government should collaborate with state governments to remove productivity constraints, and invest in infrastructure, logistics, and security to improve output and reduce costs.
To strengthen policy coordination, the OPS advocacy organization advocated the need for the government to moderate money supply growth through tighter monetary-fiscal coordination, and align fiscal, tax, and trade policies to reduce production and operating costs across sectors
It also charged the government to sustain the implementation of targeted interventions such as input subsidies, storage facilities, and mechanization programs to lower food production costs and ease pressure on household budgets in order to enhance food security in the country.
The CPPE expressed optimism that if these measures remained sustained, Nigeria “could witness a further decline in inflation, a gradual rebound in consumer confidence, and stronger foundations for inclusive and sustainable economic growth.”
