Photo caption: Dr Muda Yusuf
By Charles Okonji
The Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, has stated that the downward drift of the August inflation figures signifies a steady return to price stability.
According to Dr Yusuf, who disclosed this in his comments on August inflation figures, Nigeria’s Inflation shows continued deceleration in August 2025.
He noted that Nigeria’s headline inflation continued its downward trajectory for the fifth consecutive month in August 2025, signalling a steady return to price stability.
He stated that the inflation rate eased to 20.12%, down from 21.88% in July, which shows a notable 1.76 percentage point decline.
“Month-on-month inflation also slowed sharply, with prices rising by just 0.74% in August compared with 1.99% in July — one of the lowest sequential increases in over a year.” Dr Yusuf stated.
On the Key Inflation Drivers, the CPPE CEO said; “The main contributors to inflation in August remained largely unchanged: Food and alcoholic beverages, Restaurants and accommodation services, Transport and energy costs.
“Food inflation moderated to 21.87% from 22.74% in July, while core inflation (excluding food and energy) declined to 20.33% from 21.33%, indicating broad-based easing in price pressures.
“Economic Stability and Business Confidence: This sustained moderation suggests that Nigeria is gradually regaining macroeconomic stability. Business confidence has improved, as shown by the NESG–Stanbic IBTC Business Confidence Monitor, which has posted six consecutive months of positive readings in 2025.
“However, consumer confidence remains fragile due to persistently high food prices and weak purchasing power. Encouragingly, consumer pessimism is gradually easing, suggesting that households are beginning to adjust expectations as inflation slows.”
Analysing the key indices of the Drivers of Disinflation, he noted that several factors underpined the continued deceleration in inflation.
“Base effects from the unusually high inflation rates recorded in 2024
Stabilization of the foreign exchange market, which has reduced imported inflation and improved business confidence.
Improved agricultural production from sub-national government interventions, helping boost food supply and contain price spikes.” He stressed.
The Former DG of LCCI noted that to consolidate and build on these gains, a coherent mix of fiscal, monetary, and structural reforms will be critical.
In his own words; “Nigeria must maintain macroeconomic stability, continue stabilizing the exchange rate, deepen fiscal consolidation to curb deficits and manage public debt prudently, address structural bottlenecks, and collaborate with state governments to remove productivity constraints.”
“Invest in infrastructure, logistics, and security to improve output and reduce costs
Strengthen Policy Coordination
Moderate money supply growth through tighter monetary-fiscal coordination
Align fiscal, tax, and trade policies to reduce production and operating costs across sectors.
“The government should nnhance food security through sustaining the implementation of targeted interventions such as input subsidies, storage facilities, and mechanization programs to lower food production costs and ease pressure on household budgets.
“If these measures are sustained, Nigeria could witness a further decline in inflation, a gradual rebound in consumer confidence, and stronger foundations for inclusive and sustainable economic growth.”
