The Centre for the Promotion of Private Enterprise (CPPE) has hailed the decline in Nigeria’s inflation rate to 20.12% in August 2025 as a sign of macroeconomic stability.
According to CPPE’s Chief Executive Officer, Dr. Muda Yusuf, the sustained moderation in inflation suggests that Nigeria is gradually regaining macroeconomic stability.
CPPE’s analysis reveals that the decline in inflation is attributed to several factors, including base effects from the unusually high inflation rates recorded in 2024, stabilization of the foreign exchange market, and improved agricultural production from sub-national government interventions.
The centre notes that business confidence has improved, with the NESG-Stanbic IBTC Business Confidence Monitor posting six consecutive months of positive readings in 2025.
To consolidate and build on these gains, CPPE recommends a coherent mix of fiscal, monetary, and structural reforms.
These include maintaining macroeconomic stability, addressing structural bottlenecks, strengthening policy coordination, and enhancing food security.
Specifically, CPPE calls for stabilizing the exchange rate, deepening fiscal consolidation, investing in infrastructure, and implementing targeted interventions to lower food production costs.
If these measures are sustained, CPPE believes that Nigeria could witness a further decline in inflation, a gradual rebound in consumer confidence, and stronger foundations for inclusive and sustainable economic growth.
The centre’s analysis suggests that the current trend is a positive development for the economy, and policymakers should build on this momentum to achieve long-term stability and growth.
Comment here