The Centre for the Promotion of Private Enterprise has called on the government to improve food security and tackle insecurity in farming communities as part of efforts to reduce inflation.
The call was contained in a policy brief issued by the CPPE following the release of Nigeria’s latest inflation figures by the National Bureau of Statistics.
Nigeria’s headline inflation rate rose to 15.93% in May 2026, up from 15.69% in April, as rising consumer prices continued to put pressure on households and businesses despite a slower pace of monthly price increases.
What they are saying
The CPPE said it noted the marginal 0.24% increase in headline inflation from 15.69% in April 2026 to 15.93% in May 2026. The private sector think tank attributed the increase partly to the impact of recent geopolitical tensions in the Middle East on global energy markets and supply chains.
- “The major drivers of inflation remain food and beverages, transportation, housing, energy, health and education, which collectively account for about 87% of headline inflation. This highlights the reality that the inflation burden is concentrated in the basic necessities consumed by ordinary Nigerians,” CPPE said.
- “The consequence is lower agricultural output and tighter food supply, which continue to fuel food inflation. Therefore, tackling insecurity is not only a security imperative; it is also a critical inflation-management strategy.”
It noted that government intervention should focus on improving food security, strengthening logistics infrastructure, investing in mass transit and rail transportation, enhancing energy security and restoring safety in farming communities.
The CPPE said food inflation, which stood at 16.96%, remains particularly concerning because it continues to outpace headline inflation and weaken household purchasing power.
More insights
According to the CPPE, the surge in crude oil prices, higher marine insurance costs, disruptions to shipping routes and elevated import costs have combined to put upward pressure on domestic prices.
It added that the inflation burden remains concentrated in essential goods and services consumed by ordinary Nigerians.
The organisation said insecurity in key food-producing regions has displaced farming communities and reduced cultivated acreage.
It also noted that insecurity has disrupted agricultural supply chains and increased transportation costs. These challenges have reduced agricultural output, tightened food supply and sustained pressure on food prices.
The CPPE said Nigeria’s inflation challenge remains largely cost-push in nature, meaning the solution should focus more on production and distribution costs than on monetary tightening alone.
However, the CPPE noted that the month-on-month numbers show a more encouraging trend, as headline inflation moderated from 2.13% in April to 1.75% in May, while food inflation eased from 3.63% to 2.98%.
What you should know
According to the latest Consumer Price Index report released by the National Bureau of Statistics, Nigeria’s CPI rose to 140.7 points in May from 138.3 points in April, reflecting sustained inflationary pressure across the economy.
Headline inflation stood at 15.93% year-on-year in May 2026, compared with 15.69% recorded in April.
- On a month-on-month basis, inflation slowed to 1.75% in May from 2.13% in April.
- Food inflation eased on a month-on-month basis to 2.98% in May from 3.63% in April.
- The current inflation rate remains below the 26.06% recorded in May 2025, indicating significant disinflation over the past year.
The CPPE said the latest inflation uptick appears to reflect external shocks and domestic structural challenges rather than broad domestic macroeconomic instability, adding that policy attention should focus on insecurity, food supply constraints, transportation costs and energy prices.
