CPPE urges policy mix to sustain inflation decline, boost growth

The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to adopt a coherent blend of fiscal, monetary, and structural reforms to consolidate the gains recorded from Nigeria’s recent slowdown in inflation.

Presenting its policy brief on the August 2025 inflation figures, Dr. Muda Yusuf, Chief Executive Officer of CPPE, stressed the need for stronger policy coordination, removal of structural bottlenecks, and sustained efforts to enhance food security as central pillars for maintaining macroeconomic stability.

Nigeria’s headline inflation eased for the fifth consecutive month in August, declining to 20.12 per cent from 21.88 per cent in July — a 1.76 percentage point drop.

Month-on-month inflation slowed sharply to 0.74 per cent in August from 1.99 per cent in July, the lowest sequential increase in more than a year.

Food inflation also moderated to 21.87 per cent from 22.74 per cent, while core inflation fell to 20.33 per cent from 21.33 per cent.

CPPE attributed the sustained moderation in prices to several factors, including base effects from last year’s elevated inflation levels, greater stability in the foreign exchange market which has reduced imported inflation, and stronger agricultural output from state-level interventions.

Dr. Yusuf, urged the Federal Government to deepen fiscal consolidation to curb deficits, manage public debt prudently, and collaborate with state governments to tackle productivity constraints.

He stressed the importance of investing in infrastructure, logistics, and security to improve output and reduce costs for businesses.

On monetary policy, CPPE advised tighter monetary-fiscal coordination to moderate money supply growth, while calling for alignment of fiscal, tax, and trade policies to ease production and operating costs across key sectors.

The think tank further recommended sustaining targeted interventions such as input subsidies, mechanization programmes, and storage facilities to lower food production costs and ease pressure on households.

“If these measures are sustained, Nigeria could witness further declines in inflation, a gradual rebound in consumer confidence, and stronger foundations for inclusive and sustainable economic growth,” CPPE stated.

While business confidence has strengthened, with the NESG–Stanbic IBTC Business Confidence Monitor recording six straight months of positive readings in 2025, CPPE cautioned that consumer confidence remains fragile amid high food prices and weak household purchasing power.

Encouragingly, it added, pessimism among households is beginning to ease, suggesting that expectations are gradually adjusting as inflation moderates.

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