Nigeria steadily regaining macroeconomic stability -CPPE
The Centre for The Promotion of Private Enterprise (CPPE) has highlighted that Nigeria’s inflation downward trajectory for the fifth consecutive month in August 2025, indicates a steady return to price stability as the inflation rate eased to 20.12 per cent down from 21.88 per cent in July a notable 1.76 percentage point decline.
Chief Executive Officer of the Center, Dr. Muda Yusuf, in a statement described this consistent deceleration as a positive sign of increasing economic stability, attributing it to foreign exchange market stabilization, base effects from 2024, and improved agricultural output.
On Monday, the National Bureau of Statistics (NBS) released the Consumer Price Index (CPI) for August 2025. The report showed that the headline inflation rate eased to 20.12 per cent, down from 21.88 per cent in July, a notable 1.76 percentage point decline.
Month-on-month inflation also slowed sharply, with prices rising by just 0.74 per cent in August compared with 1.99 per cent in July, one of the lowest sequential increases in over a year.
The report also shows that food inflation moderated to 21.87 per cent from 22.74 per cent in July, while core inflation (excluding food and energy) declined to 20.33 per cent from 21.33 per cent, indicating broad-based easing in price pressures.
CPPE stated that business confidence has improved, as indicated by the NESG–Stanbic IBTC Business Confidence Monitor, which has recorded six consecutive months of positive readings in 2025.
Stable exchange rate, food prices drive down inflation to 20.12%
Food inflation slows to 21.87% as staple prices ease, according to NBS.
CPPE also faults shea nuts export ban, adding that the policy could hurt farmers.
The centre, noted that 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,” it added.
CPPE, identifying factors responsible for the ongoing deceleration in inflation, listed base effects from the unusually high inflation rates recorded in 2024, stabilisation of the foreign exchange market, which has reduced imported inflation and boosted business confidence, as well as improved agricultural production from sub-national government interventions, helping to increase food supply and contain price spikes.
The Centre stressed on the need to consolidate and build on these gains and recommended a coherent mix of fiscal, monetary, and structural reforms.
“The government should continue stabilising the exchange rate; deepen fiscal consolidation to curb deficits and manage public debt prudently,” it said.
It also stated that the federal government must address structural bottlenecks by working with state governments to remove productivity constraints, invest in infrastructure, logistics, and security to enhance output and lower costs; control money supply growth through tighter monetary and fiscal coordination; align fiscal, tax, and trade policies to reduce production and operating costs across sectors; and continue implementing targeted measures such as input subsidies, storage facilities, and mechanisation programmes to reduce food production costs and ease household budget pressures.
“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,” it emphasized.