Nigeria’s inflation rate has dropped to 16.05 percent in October, marking the seventh consecutive month of decline. Despite this positive trend, the Centre for the Promotion of Private Enterprise (CPPE) notes that the cost of living remains a significant challenge for many Nigerians.
The CPPE’s Chief Executive Officer attributed the drop in inflation to several factors, including a modest appreciation of the naira, reduced imported inflation, and monetary tightening. However, he emphasized that the impact of this decline on the welfare of ordinary Nigerians is still minimal due to structural pressures. The sectors that have the most significant impact on families, such as food, transportation, housing, electricity, education, and health, account for 84 percent of the inflation burden, keeping living costs elevated.
Although food inflation decreased from 16.87 percent in September to 13.12 percent in October, month-on-month food prices continued to rise. The CPPE warned that without structural reforms, the current disinflation trend will not lead to a significant reduction in the cost of living for ordinary Nigerians. The organization called for urgent government action to sustain the gains and make life more affordable, suggesting interventions such as expanding irrigation, storage, and processing, as well as fixing critical federal highways and expanding freight rail.
The CPPE’s CEO stated that the October drop in inflation is a significant achievement for macroeconomic stability, but it will only translate into real relief for Nigerians when food, transport, housing, and energy costs begin to fall meaningfully. He emphasized the need to “double down on reforms” to ensure that the current trajectory is sustained and benefits households and businesses. The organization’s warnings highlight the need for continued efforts to address the underlying structural issues driving inflation and the cost of living in Nigeria.
