by Niyi Jacobs
Despite Nigeria’s headline inflation rate falling to 16.05 per cent in October, the cost of living for ordinary households remains steep, the Centre for the Promotion of Private Enterprise (CPPE) has warned.
In a statement on Monday, CPPE Chief Executive Officer Muda Yusuf said the latest data, marking the seventh consecutive monthly decline, reflects progress in macroeconomic stability. The moderation was aided by a calmer foreign exchange environment, better policy coordination, and strong base effects.
“While this is a significant disinflation milestone for the economy, the impact on household welfare remains minimal because structural pressures are still very high,” Yusuf said. He stressed that sectors most relevant to families—including food, transportation, housing, electricity, education, and healthcare—together accounted for 84 per cent of the inflationary burden in October, keeping living costs elevated.
The think tank noted that although food inflation eased from 16.87 per cent in September to 13.12 per cent in October, month-on-month food prices continued to rise, highlighting that Nigerians are yet to feel tangible relief.
According to CPPE, three major factors drove the October moderation. First, the high reference point of 33.8 per cent in October 2024 contributed to a statistical decline. Second, modest naira appreciation helped reduce imported inflation. Third, monetary tightening, improved foreign exchange liquidity, and reduced speculative demand strengthened price stability.
Yusuf emphasized that sustaining the gains and translating them into meaningful improvements in living standards will require urgent government action. He called for targeted interventions, including expanding irrigation, storage, and processing for agriculture, securing farming communities, repairing federal highways, and expanding freight rail networks.
“Disinflation is good news, but without structural reforms, it will not ease the cost of living for ordinary Nigerians,” he warned. Yusuf urged policymakers to “double down on reforms” to ensure that the current trajectory benefits households and businesses alike.
While the October drop represents a step toward stability, CPPE’s analysis underscores that Nigerians will only feel real relief when prices for essential goods and services begin to fall in a sustained and meaningful way
