The Centre for The Promotion of Private Enterprise (CPPE) has  said that despite the decline in short-term inflationary momentum, inflation conditions still remain severe from a welfare and business cost perspective.

 

The Centre, in its reaction to the April 2026 inflation figures, identified food, transportation, energy products, healthcare and restaurant services, as the dominant inflation drivers; since the accounted for about  87 percent of the inflation pressure recorded in the month of April.

 

It  explained that those were essential expenditure items, absorbing the bulk of household income, particularly among low-income Nigerians.

 

The Centre also identified current geopolitical tensions involving Iran, Israel and the United States, as  also intensifying inflationary risks, since the conflict has triggered renewed volatility in the global oil market, pushing up crude oil prices and transmitting higher energy costs into the domestic economy.

 

“Rising petrol, diesel and gas prices are fueling transportation, logistics and production costs across sectors, with significant pass-through effects on food prices and overall consumer inflation,” it added.

 

The Centre described the development as further underscoring  the structural and supply-side nature of  the nation’s  inflation challenge, since monetary tightening alone, it argued,  cannot resolve inflation driven by energy costs, logistics inefficiencies, food supply disruptions and weak infrastructure conditions.

 

While warning that resorting additional monetary tightening could worsen financing costs for businesses, weaken investment and further constrain productivity growth, the organization urged the relevant authorities to shift its policy priority  towards supply-side interventions.

 

It therefore called on the government at both federal and state levels, to intensify measures, aimed at reducing  energy costs, improving transportation infrastructure, strengthening food supply systems, enhancing  trade facilitation and supporting domestic productivity.

 

“For businesses, the operating environment remains extremely challenging. Firms should prioritize energy efficiency, dynamic pricing models, consumer segmentation and affordability-driven product strategies, including smaller pack sizes, as consumers become increasingly price-sensitive and discretionary spending weakens”, it added.