Nigeria’s headline inflation rate fell to 15.15 per cent in December 2025, extending a 12-month disinflation trend largely driven by declining food prices, the Centre for the Promotion of Private Enterprise (CPPE) has said.
In its policy brief on the December 2025 inflation figures, signed by the CEO, Dr Muda Yusuf, CPPE noted that the easing of food prices had provided some relief to households grappling with high living costs.
Month-on-month inflation slowed to 0.54 per cent, down from 1.22 per cent in November, while food inflation dropped sharply to 10.84 per cent, with food prices recording a marginal deflation of 0.36 per cent.
Despite the improvement, the private sector advocacy group raised concerns over the credibility of the inflation data, citing recent changes in the methodology used to compute the Consumer Price Index (CPI).
According to CPPE, while the adjustments have not materially altered the disinflation trend over the past year, they have weakened confidence among investors, analysts, businesses and policymakers.
Core inflation, which excludes volatile food and energy prices, rose to 18.63 per cent in December from 18.04 per cent in November, a development CPPE described as worrying given relative exchange-rate stability.
The group said the increase suggests deeper structural pressures or possible statistical inconsistencies that require urgent review.
CPPE identified food and beverages, housing, restaurants, transportation and fuel as the major drivers of inflation, accounting for about 72 per cent of overall price pressure. It added that while inflation is moderating,
key structural cost drivers such as high energy and fuel prices, rising transportation and logistics costs, insecurity affecting agricultural output, high interest rates and import duties on production inputs remain firmly in place.
The organisation also warned that the sharp decline in food prices, while beneficial to consumers, is eroding farmers’ returns and threatening the sustainability of agricultural investments.
This, it said, poses risks to long-term food security if not addressed. CPPE noted that the Coordinating Minister for the Economy, Wale Edun, has acknowledged the challenge and indicated that government is working to balance food affordability with farmers’ investment viability.
To sustain the disinflation trend, CPPE called for targeted interventions to reduce costs in key sectors, including food, transportation, housing and utilities.
It urged the government to tackle insecurity, lower input costs for farmers, reduce import duties on manufacturing inputs and introduce a minimum guaranteed pricing framework for staple crops to restore confidence among producers.
The group also stressed the need for stronger coordination between fiscal and monetary authorities, arguing that structural reforms must complement monetary tightening to curb inflation without undermining production.
In addition, CPPE urged the National Bureau of Statistics (NBS) to strengthen its institutional capacity, improve technical and analytical rigour in CPI computation and rebuild public and investor confidence in official data.
The center said the December 2025 inflation figures confirm that Nigeria’s inflation is easing, largely due to falling food prices. However, it warned that without decisive action to address structural cost pressures, support farmers and restore confidence in inflation data, recent gains in affordability and price stability may not be sustained.
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