Yemisi Izuora
The Chief Executive Officer (CEO) of the Center for the Promotion of Private Enterprise (CPPE) Dr. Muda Yusuf, has advocated for proactive, coordinated and forward-looking policy response to safeguard macroeconomic stability, protect citizens and support enterprise sustainability in an increasingly volatile global environment.
In his policy brief on February inflation, Yusuf expressed confidence that modest progress has been achieved but warned that rising geopolitical energy shock may reverse reported gains.
According to him, February 2026 CPI report presents a cautiously optimistic picture, with headline inflation easing marginally to 15.06 per cent year-on-year, down from 15.10 per cent in January and significantly lower than 26.27 per cent a year earlier.
This, in his opinion reflects a continuing disinflation trend supported by base effects, monetary tightening and stabilization in macroeconomic conditions.
However, he argues that this improvement is fragile and does not yet signal a decisive turnaround in price dynamics.
“The underlying inflation reality remains concerning. On a month-on-month basis, inflation accelerated to 2.01%, while food inflation surged to 4.69%, reversing the moderation recorded previously.” he said.
He expressed excitement that the February CPI report signals some progress in the fight against inflation.
“While headline inflation is moderating, underlying price pressures remain strong, and the external environment is becoming increasingly adverse.
“The current geopolitical energy shock poses a significant risk to Nigeria’s inflation outlook, with the potential to reverse recent gains and deepen pressures on households and businesses.” he warned.
Overall, he said Food, transport and energy costs continued to rise at a pace that erodes purchasing power. Real incomes remain under severe strain, particularly for vulnerable and urban households. Disinflation, in this context, simply means a slower increase in prices—not a reduction in the cost of living.
For businesses, especially SMEs, the operating environment remains extremely challenging. Energy, logistics and raw material costs are elevated, while weak consumer demand limits pricing flexibility. The result is a tightening squeeze on margins, declining profitability and rising business vulnerability, particularly in consumer-facing sectors.
The most immediate threat to the inflation outlook is the escalation of geopolitical tensions in the Middle East, involving Iran, Israel and the United States.