By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise (CPPE) has warned that Nigeria’s inflation crisis remains largely structural despite the marginal decline in headline inflation recorded in June 2026, stressing that rising food prices continue to threaten household welfare and economic recovery.
In its assessment of the June inflation report released by the National Bureau of Statistics, the CPPE noted that headline inflation eased slightly to 15.91 per cent in June from 15.93 per cent in May, while month-on-month inflation moderated to 1.66 per cent from 1.75 per cent.
The economic think tank, however, observed that the modest improvement masked a renewed acceleration in food prices, which remain the biggest driver of the country’s cost-of-living crisis.
According to the CPPE, year-on-year food inflation rose from 17.43 per cent in May to 17.52 per cent in June, while month-on-month food inflation surged to 3.75 per cent from 2.98 per cent, representing the strongest monthly increase in several months.
“The dominant concern in the report is the renewed acceleration in food inflation. Food prices have resumed an upward trajectory after a brief period of moderation,” the organisation stated.
It warned that sustained increases in food prices would continue to erode household purchasing power, deepen poverty and food insecurity, and weaken public confidence in the government’s economic reforms.
The CPPE described the moderation in core inflation as encouraging, attributing it to exchange-rate stability and improving macroeconomic conditions, which have helped contain imported inflation and non-food price pressures.
The organisation also highlighted the persistence of urban inflation, noting that the urban inflation rate of 16.08 per cent exceeded the national headline figure of 15.91 per cent.
According to the CPPE, the increase in urban inflation may partly reflect growing population displacement from rural communities affected by insecurity, which has intensified demand for housing, transport and essential services in cities.
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It argued that restoring security in farming communities would not only improve agricultural production but also help ease inflationary pressures in urban centres.
The think tank maintained that Nigeria’s inflation challenge remains predominantly structural rather than monetary, citing insecurity, high transportation costs, expensive energy, rising fertiliser prices, supply-chain disruptions and imported inflation as key drivers.
It noted that food, transportation, housing, utilities and energy account for about 72 per cent of current inflationary pressures, urging policymakers to focus interventions on those sectors.
The CPPE commended the Minister of Finance and Coordinating Minister of the Economy for establishing a ministerial advisory committee to recommend practical measures for addressing structural economic constraints and the cost-of-living crisis.
The organisation called on federal, state and local governments to prioritise the restoration of security in farming communities, expansion of irrigation systems, mechanisation of agriculture, technology adoption, affordable financing, improved storage facilities and lower logistics costs.
It also urged the government to sustain exchange-rate stability and accelerate domestic petroleum refining to reduce foreign exchange demand for fuel imports and strengthen macroeconomic resilience.
On monetary policy, the CPPE said the June inflation figures do not justify further tightening by the Central Bank of Nigeria.
“Headline inflation has largely stabilised, core inflation continues to moderate and the principal drivers of inflation remain structural rather than demand-induced,” the organisation stated.
It added that the Monetary Policy Committee should maintain its current stance at the next meeting and collaborate with fiscal authorities to implement reforms capable of lowering production costs, boosting food supply and improving living standards.
