By Seun Ibiyemi
The Centre for the Promotion of Private Enterprise has warned that Nigeria’s recent progress in moderating inflation remains fragile, citing renewed pressures from rising energy, food and transportation costs.
In its policy brief on the March 2026 inflation report, the Chief Executive Officer, CPPE, Dr. Muda Yusuf said the latest data released by the National Bureau of Statistics showed a concerning resurgence in inflationary pressures, particularly on a month-on-month basis.
According to the report, headline inflation rose slightly to 15.38 per cent in March, while month-on-month inflation accelerated sharply to 4.18 per cent, nearly double the rate recorded in February.
He attributed the trend largely to rising energy costs, noting that increases in fuel, diesel and gas prices continue to drive production, transportation and distribution expenses across the economy.
Dr Yusuf explained that the cost pressures have had far-reaching effects, including higher transport fares, rising food prices and increased cost of goods and services nationwide.
The report identified food and transportation as the dominant drivers of inflation, accounting for an estimated 70 per cent of overall inflationary pressures when both direct and indirect impacts are considered.
He noted that food inflation stood at 14.31 per cent year-on-year, while core inflation rose to 16.21 per cent, highlighting sustained pressure on household spending.
CPPE warned that the trend has serious welfare implications, including erosion of purchasing power, rising cost of living and increased poverty, particularly among vulnerable and rural populations.
He also raised concerns over the structure of Nigeria’s transportation system, pointing to the dominance of private operators who often have significant pricing power due to limited regulation.
According to the think tank, this situation allows transport costs to rise rapidly in response to fuel price increases, further amplifying inflation across sectors.
To address the challenge, the CPPE urged governments at all levels to prioritise investments in agricultural productivity and public transportation.
He called for improved security in farming communities, better rural infrastructure, access to financing and modern farming techniques to boost food production and moderate prices.
Dr. Yusuf also recommended significant investment in mass transit systems, including bus and rail networks, to reduce reliance on fragmented private transport systems and curb exploitative pricing.
Read Also:Ogun Police arrest 146 suspects in intelligence-led operation in Sagamu
On monetary policy, the CPPE cautioned against further tightening, arguing that current inflationary pressures are largely cost-driven rather than demand-driven.
He warned that higher interest rates could constrain economic growth, investment and productivity without addressing the root causes of inflation.
Dr. Yusuf stressed that tackling structural challenges in energy, food and transportation remains critical to sustaining price stability and easing the burden on households and businesses.
