Centre Calls for Energy, Food Reforms To Tackle Rising Inflation Pressures

The Centre for the Promotion of Private Enterprise (CPPE) has called for urgent reforms in Nigeria’s energy and food sectors, warning that persistent cost pressures in these areas are driving renewed inflationary trends in the economy.

The Director/Chief Executive Officer of CPPE, Dr. Muda Yusuf, made the call while reacting to the March 2026 Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS).

According to him, recent data shows that while year-on-year inflation has continued to moderate, there are clear signs of a rebound in month-on-month price increases, raising concerns about the sustainability of recent disinflation gains.

Yusuf noted that headline inflation rose to 15.38 per cent in March 2026, while month-on-month inflation jumped sharply to 4.18 per cent, nearly double the level recorded in February.

He described the development as evidence of renewed inflationary pressures in the economy.

He explained that the latest increase is largely driven by rising energy costs, which continue to affect production, transportation, and distribution across various sectors.

“Energy remains a key cost driver in Nigeria due to continued reliance on petrol, diesel and gas for power generation, logistics and industrial activities,” he said.

The CPPE boss stressed that current inflationary trends are largely cost-driven rather than demand-induced, pointing to structural inefficiencies in energy supply, food production, and transportation as major contributors.

He warned that without urgent policy interventions, especially in these critical sectors, the fragile gains recorded in inflation moderation could be reversed, worsening living conditions for households and increasing operational costs for businesses.

“The emerging pattern shows that while inflation is easing on a yearly basis, underlying structural challenges remain unresolved, and recent monthly increases indicate renewed price pressures,” Yusuf said.

He therefore urged policymakers to move beyond a narrow reliance on monetary measures and adopt broader structural reforms targeting energy, food systems, and transport infrastructure.

According to him, only decisive action in these areas can sustain recent improvements in price stability and prevent further erosion of purchasing power among Nigerians.