CPPE Warns Rising Energy Costs Threaten Nigeria's Gains

The Centre for the Promotion of Private Enterprise (CPPE) has issued a warning that increasing energy costs may negate Nigeria's recent disinflation achievements, even as headline inflation fell to 14.63% in September 2026 from 15.39% in August. The CPPE's policy brief highlighted a significant rise in monthly energy inflation, which surged to 5.38% in September from 0.36% in August, marking an increase of 5.02 percentage points.

Year-on-year energy inflation was reported at 10.85%. The CPPE linked this pressure to geopolitical tensions in the Middle East, which have caused volatility in global petroleum markets.

They emphasized that higher energy prices could elevate transportation, distribution, and production costs, potentially impacting food prices and core inflation. While acknowledging the decline in headline inflation as a positive sign for macroeconomic stability, the CPPE cautioned that elevated energy costs could undermine this trend.

They urged policymakers to balance the need for lower borrowing costs with inflation expectations and energy-price risks.