The Centre for the Promotion of Private Enterprise (CPPE) has warned that Nigeria’s current inflation pressures are largely cost-push driven, citing rising energy prices, logistics bottlenecks, and structural inefficiencies as the main drivers.
The position was outlined in a policy brief released after the latest inflation figures published by the National Bureau of Statistics (NBS).
According to the report, Nigeria’s headline inflation rose to 15.38% year-on-year in March 2026, indicating renewed price pressures across the economy.
Inflation pressures driven by costs
The CPPE said the latest inflation figures highlight the fragility of Nigeria’s disinflation trend, noting that the current rise in prices is not primarily driven by consumer demand.
Instead, the think tank pointed to higher energy costs, supply chain disruptions, and structural inefficiencies as key factors pushing up production and distribution costs across industries.
According to the group, these cost pressures are affecting manufacturing, transportation, and supply chains, ultimately driving up consumer prices.
The CPPE also warned that relying solely on monetary policy tools may not effectively address the current inflation dynamics, urging policymakers to focus more on supply-side interventions.
Latest inflation figures
Data from the National Bureau of Statistics showed that headline inflation rose from 15.06% in February to 15.38% in March, representing a 0.32 percentage-point increase.
Price increases accelerated significantly on a monthly basis:
- Month-on-month inflation: 4.18% (up from 2.01% in February)
- 12-month average inflation: 20.05% (up from 18.58% in March 2025)
Inflation patterns also varied across regions:
- Urban inflation: 14.64% year-on-year
- Rural inflation: 17.22% year-on-year
The figures indicate a faster pace of price increases in March compared with the previous month.
Food and transport costs dominate inflation
The CPPE noted that food and transportation costs account for roughly 70% of overall inflationary pressure in the country.
According to the data:
- Food inflation: 14.31%
- Core inflation: 16.21%
Transportation costs remain a major contributor due to higher fuel prices and logistics challenges, which continue to raise the cost of moving goods across the country.
The think tank also highlighted that the dominance of private operators in Nigeria’s public transport system, combined with limited regulatory oversight, exposes commuters to frequent fare increases.
Concerns over rising interest rates
The CPPE cautioned against further monetary tightening, warning that higher interest rates could slow economic activity without addressing the structural causes of inflation.
Nigeria’s monetary policy is managed by the Central Bank of Nigeria (CBN), which has maintained relatively high interest rates in an effort to stabilize prices.
However, CPPE argues that higher borrowing costs could weaken investment, productivity, and economic growth, while doing little to address supply-side constraints.
Inflation remains a major economic challenge
Inflation continues to be one of the most pressing macroeconomic challenges in Nigeria, driven by multiple structural and economic factors.
Price pressures have been influenced by:
- Rising food prices
- Exchange rate fluctuations
- Supply chain constraints
- Energy and transportation costs
While inflation has shown some moderation on a year-on-year basis, monthly price volatility remains high.
Analysts say tackling inflation will require targeted policy responses that address both monetary conditions and structural inefficiencies in the economy.
