CPPE dismisses official data, reiterates persistent high food prices highlight unresolved structural weaknesses
By Jeph Ajobaju, Chief Copy Editor
Food prices remain high and citizens are still struggling to feed despite another decline in headline inflation in the latest figure announced by the National Bureau of Statistics (NBS), the Centre for the Promotion of Private Enterprise (CPPE) has reiterated.
CPPE Director Muda Yusuf stressed the point in a statement he issued in reaction to the July figures just released by the NBS showing that headline inflation fell to 21.88 per cent from 22.22 per cent in June, the fourth consecutive drop.
CPPE noted that the fourth decline in inflation reflects a gradually stabilising macroeconomic environment, supported by exchange rate stability and improved investor confidence.
But it stressed that despite these gains, “pressures persist” on the Nigerian economy, and suggested a mix of monetary, fiscal, and structural interventions to consolidate recent progress and steer the economy towards sustained stability.
“The July 2025 inflation report provides a basis for cautious optimism. While progress has been made in moderating headline and core inflation, the persistence of food and month-on-month [MoM] price increases highlights unresolved structural weaknesses.
“A coordinated mix of monetary, fiscal, and structural interventions will be required to consolidate recent gains and steer the economy towards sustained stability,” CPPE said.
It also:
- Expressed concern that MoM headline inflation rose from 1.68 per cent in June to 1.99 per cent in July, and year-on-year (YoY) food inflation jumped from 21.97 per cent to 22.74 per cent, which it said underscores the continuing vulnerability of the economy to supply-side shocks.
- Urged the Federal Government to give significant priority to foreign exchange (forex) stability by maintaining calm in the forex market to anchor inflation expectations.
- Stressed the need for structural reforms to effectively address constraints such as high logistics and import costs, insecurity, climate risks, and port inefficiencies that elevate costs and sustain inflation.
- Advised the CBN to move beyond conventional tightening tools (CRR, MPR), towards more creative measures, to enable it manage liquidity in the economy, since bank lending rate has risen above 30 per cent for most businesses.
“Fiscal discipline is also needed to ensure prudent government spending and managing liquidity injections effectively to prevent fueling inflationary pressures.”
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