CPPE Reaction on September Inflation Figures Dike Onwuamaeze

The Centre for the Promotion of Private Enterprise (CPPE) has welcomed the drop in Nigeria's headline inflation rate from 15.39% in August to 14.63% in September 2026, signalling a positive trend towards disinflation. However, the organisation noted that the mixed inflation report revealed that while headline and core inflation moderated, food inflation remained high at 19.59%, and energy inflation surged to 5.38%.

CPPE's CEO, Dr. Muda Yusuf, stated that the decline in inflation provided evidence of progress in stabilising the economy and that the falling prices indicated a reduction in underlying price pressures. Yusuf attributed the fall in inflation to the stability of the foreign exchange market, which helped to curb imported inflation and improve business planning.

He also highlighted that the moderating inflation has significant implications for monetary policy. Yusuf stated that with inflation decreasing, there is a stronger case for further monetary easing, especially considering the high cost of credit, which adversely affects investment, working capital, and productive capacity. He suggested that a sustained reduction in interest rates would enhance credit affordability, relieve financing pressures, and bolster private-sector investment.

Yusuf warned that food inflation remains a critical threat to household welfare, as it constitutes a substantial portion of expenditure for low-income households. He expressed concern over elevated food inflation, which reduces real incomes, exacerbates poverty risks, and weakens household consumption. Yusuf also raised concerns about the threat posed by energy inflation to price stability.

He noted that energy inflation increased sharply from 0.36% in August to 5.38% in September, a 5.02 percentage point rise, and on a year-on-year basis, it stood at 10.85%. Yusuf stressed that the acceleration in energy inflation is a significant warning sign that the recent disinflationary gains could be reversed if higher energy costs persist.

He urged policymakers to focus on strengthening domestic energy resilience by improving electricity supply, expanding CNG infrastructure, promoting electric mobility, and enhancing domestic refining efficiency.