Inflation: CPPE, LCCI disagree on new CPI computation parameters

It’s creating credibility gaps, undermining investors’ confidence — CPPE
Statistically credible, fully aligned with international best practices —LCCI

TWO formidable institutions in the nation’s economic front, the Centre for Promotion of Private Enterprise (CPPE) and the Lagos Chamber of Commerce and Industry (LCCI), have expressed divergent views on the revised Consumer Price Index (CPI) methodology.

While CPPE, in its reaction to the December 2025 inflation figures, believed the adjustments had created credibility gaps and undermined the confidence of investors, analysts, businesses, and policymakers, LCCI, in its own assessment, described the revised methodology as technically sound, statistically credible, and fully aligned with international best practices.

CPPE’s Chief Executive Officer, Dr. Muda Yusuf, in a statement issued by the Centre on Monday, had expressed concerns that despite exchange-rate stability, core inflation in December increased to 18.63 per cent.

He described the development as inconsistent with macroeconomic fundamentals, adding that this suggests deeper structural pressures or possible statistical inconsistencies.

The CPPE boss, therefore, called on the government to review and improve CPI methodology to ensure alignment with economic realities.

He argued that the changes in the methodology for computing the Consumer Price Index (CPI) had raised concerns about the credibility of the inflation data, though he noted that it had not materially affected the disinflation trend over the past 12 months.

“This is inconsistent with macroeconomic fundamentals and suggests deeper structural pressures or possible statistical inconsistencies.

Government should review and improve CPI methodology to ensure alignment with economic realities,” he added.

READ ALSO: Nigeria’s headline inflation eased to 15.15% in December 2025 — NBS

But the Director General of LCCI, Dr Chinyere Almona, in a statement issued by the Chamber on the December 2025 inflation, described the revised CPI methodology as technically sound, statistically credible, and fully aligned with international best practices.

 The revision, she added, reflects a legitimate correction of base-year distortions following the CPI rebasing exercise and does not constitute any manipulation of inflation outcomes.

“By adopting a twelve-month average for 2024 as the base year (2024 = 100), rather than a single-month reference, the NBS prudently avoided artificial inflation spikes that often occur after long gaps between base years, particularly relevant given Nigeria’s 15-year shift from the 2009 base.

“This approach strengthens analytical accuracy, preserves policy relevance, and enhances the credibility of inflation measurement. The NBS’s clear communication and distinction between statistical base effects and underlying economic conditions also helped reinforce transparency and public confidence.

“Overall, the revised CPI represents improved measurement rather than a statistical distortion, and the December 2025 data reflect genuine economic stabilisation. Nigeria’s economy is cooling, and inflationary pressures are easing, but full recovery will require consistent and coordinated policy action,” she stated.

The two institutions, however, agreed that while the moderation had been driven largely by falling food prices, the structural drivers of high costs, especially energy, transportation, logistics and insecurity, were still firmly in place.

They called for investments and continued focus on agriculture, food supply chains, energy reform, transport efficiency, and productivity so as to consolidate disinflation gains.