The Centre for the Promotion of Private Enterprise (CPPE) has stated that Nigeria’s inflationary pressures are largely cost-push driven, citing rising energy costs, logistics bottlenecks, and structural inefficiencies as key drivers.
This position was contained in a Policy Brief seen by Nairametrics following the release of the March 2026 inflation report by the National Bureau of Statistics (NBS) on Wednesday.
The data showed that headline inflation rose to 15.38% year-on-year, with a sharp increase in month-on-month inflation.
What CPPE is saying
The CPPE said the latest figures highlight the fragility of Nigeria’s disinflation trend and point to renewed cost pressures across the economy.
- “The current inflationary pressures are not demand-driven. They are rooted in energy, logistics, and structural inefficiencies.”
The group emphasized that rising energy costs continue to affect production, transportation, and distribution channels.
It warned that relying solely on monetary policy tools may not effectively address the current inflation dynamics.
The think tank urged policymakers to focus more on supply-side interventions to tackle the root causes of inflation.
Get up to speed
Data from the National Bureau of Statistics showed a moderate rise in headline inflation alongside a sharper increase in monthly price levels.
- Headline inflation increased from 15.06% in February to 15.38% in March, representing a 0.32 percentage point rise.
- Month-on-month inflation surged to 4.18%, up significantly from 2.01% recorded in February.
- The twelve-month average inflation rate rose to 20.05%, compared to 18.58% in March 2025.
- Urban inflation stood at 14.64% year-on-year, while rural inflation was higher at 17.22%.
The data reflects an acceleration in the pace of price increases in March compared to the previous month.
More insights
CPPE noted that food and transportation costs remain the dominant drivers of inflation, accounting for about 70% of overall price pressures.
- Food inflation was recorded at 14.31%, while core inflation rose to 16.21%.
- Transportation costs, largely driven by fuel prices and logistics inefficiencies, continue to push up prices across sectors.
- The dominance of private operators in public transport, with limited regulatory oversight, exposes consumers to frequent fare hikes.
The group warned that rising inflation is eroding real incomes and worsening poverty, especially in rural areas.
The CPPE also cautioned against further monetary tightening, stating that higher interest rates could negatively impact economic growth, investment, and productivity without addressing the root causes of inflation.
What you should know
Inflation remains one of Nigeria’s most pressing macroeconomic challenges, shaped by multiple structural and economic factors.
Price pressures have been largely driven by food costs, exchange rate fluctuations, and supply-side constraints.
Government reforms and market adjustments have also influenced the movement of prices.
Inflation has shown some moderation on a year-on-year basis but remains volatile on a monthly basis.
Both urban and rural areas continue to experience varying inflation dynamics.
These factors continue to define Nigeria’s inflation outlook and underscore the need for targeted policy responses.
