The Centre for the Promotion of Private Enterprise (CPPE) has welcomed the sustained moderation of Nigeria’s inflation rate but cautioned that consumer confidence remains fragile due to persistently high food prices and weak household purchasing power.
Dr. Muda Yusuf, Chief Executive Officer of CPPE, made this known in a policy brief shared with Nairametrics on Tuesday, noting that while inflation has slowed in recent months, its impact is still weighing heavily on ordinary Nigerians.
“Consumer confidence remains fragile due to persistently high food prices and weak purchasing power. Encouragingly, consumer pessimism is gradually easing, suggesting that households are beginning to adjust expectations as inflation slows,” CPPE boss said.
According to him, the slowdown signals that Nigeria is “gradually regaining macroeconomic stability,” though the benefits are yet to be fully felt across all segments of the population.
CPPE urge FG to sustain targeted interventions
The CPPE urged the government at both the federal and state levels to sustain reforms and adopt measures that will reinforce macroeconomic stability.
According to the policy brief, the government was urged 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.”
According to him, if these measures are sustained, “Nigeria could witness a further decline in inflation, a gradual rebound in consumer confidence, and stronger foundations for inclusive and sustainable economic growth.”
Backstory
The National Bureau of Statistics (NBS) reported on Monday that Nigeria’s headline inflation rate eased for the fifth consecutive month, dropping to 20.12% in August 2025 from 21.88% recorded in July 2025.
This means, according to the NBS, that in August 2025, the rate of increase in the average price level was lower than the rate of increase in the average price level in July 2025.
The NBS noted that the food inflation rate in August 2025 was 21.87% on a year-on-year basis. This was 15.65% points lower compared to the rate recorded in August 2024, which was at 37.52%.
The NBS report noted that core inflation, which excludes the prices of volatile agricultural produces and energy, stood at 20.33% in August 2025 on a year-on-year basis; a decline of 7.25% when compared to the 27.58% recorded in August 2024.
Persistent inflationary pressures have weighed on Nigerian consumers for much of 2025, particularly in urban centers where food, housing, and transportation costs remain elevated.
Food inflation remains the key cost driver for many Nigerian families, accounting for a large portion of household spending.
