The Centre for the Promotion of Private Enterprise (CPPE) says Nigeria’s January inflation decline of 15.10 per cent signals a significant shift toward macroeconomic stabilisation, with positive implications for households and investors.

The founder, CPPE, Muda Yusuf, said this on Monday in Lagos via a statement in reaction to the 0.05 per cent inflation decline in January 2026 according to the National Bureau of Statistics (NBS).

Mr Yusuf said the easing of inflation pressures was broad-based across major components of the price index.

He said food inflation declined sharply to 8.89 per cent year-on-year in January, down from 29.63 per cent in January 2025 and 10.84 per cent in December 2025.

He added that core inflation moderated to 17.72 per cent year-on-year in January, compared with 18.63 per cent in December 2025, indicating that price easing was extending beyond food into other segments of the consumption basket.

He affirmed that the sharp moderation in food inflation would deliver substantial welfare benefits, with food accounting for the largest share of household expenditure in Nigeria.

Mr Yusuf added that lower food prices were expected to improve real purchasing power, particularly for low-income households, reduce food-security pressures and support a gradual recovery in consumer demand for non-food goods and services.

“If sustained, these developments could stimulate retail trade, manufacturing utilisation and service-sector activity, thereby supporting broader economic recovery,” he stated.

Mr Yusuf, however, cautioned that declining food prices could pose risks to farm incomes and rural economic stability if sustained over a prolonged period.

He said the persistent weakness in farm-gate prices could reduce farmers’ revenues and investment capacity, weaken rural purchasing power and discourage agricultural production.

He added that it could potentially create future supply shortages and renewed inflationary pressures.

Mr Yusuf stressed the need to balance consumer affordability with producer sustainability to safeguard national food security.

He said lower primary food prices could compress margins in crop production but strengthen the case for investment in storage, processing, cold chains and export-oriented agribusiness.

He recommended targeted measures to protect farm incomes while sustaining food affordability, including productivity support, minimum guaranteed prices for selected crops, strategic reserves and expanded agro-processing capacity to absorb surplus output.

Mr Yusuf also highlighted state-level disparities in inflation, noting that headline inflation was highest in Benue, Kogi and the Federal Capital Territory, and lowest in Ebonyi, Katsina and Imo.

“The pattern underscores the importance of transport costs, security conditions and supply-chain efficiency in price formation, hence the need for government to address structural constraints to achieve durable nationwide price stability,” he said.

Mr Yusuf maintained that consolidating disinflation while protecting agricultural productivity and rural livelihoods would be critical to transforming current price moderation into durable stability and inclusive growth. 

(NAN)