The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, has warned that rising food, transport and energy costs are eroding Nigerians’ purchasing power, leaving many households—particularly in urban areas—under intense financial strain.
Although Nigeria’s headline inflation eased slightly to 15.06 per cent year-on-year in February 2026, Yusuf said the marginal decline does not reflect the harsh reality of the country’s rising cost of living.
Presenting a policy brief on the Consumer Price Index report, Yusuf noted that businesses—especially Micro, Small and Medium Enterprises (MSMEs)—continue to face severe operational challenges.
He said high energy, logistics and raw material costs, combined with weak consumer demand, are squeezing business margins, reducing profitability and increasing vulnerability across key sectors.
He cautioned that the modest slowdown in inflation does not mean prices are falling, explaining that disinflation simply reflects a slower pace of increase rather than an actual drop in living costs.
Yusuf added that on a month-on-month basis, inflation accelerated to 2.01 per cent, while food inflation surged to 4.69 per cent, indicating that price pressures remain strong.
Yusuf also warned that escalating geopolitical tensions in the Middle East could worsen Nigeria’s inflation outlook. Rising crude oil prices, already pushed above $100 per barrel amid threats to energy infrastructure and the vital Strait of Hormuz, could translate into higher petrol and diesel prices, increased transportation costs, exchange rate pressures and further rises in food prices.
Meanwhile, the Federal Government said Nigeria is ready to help stabilise global energy supply.
The Minister of Information and National Orientation, Mohammed Idris, said the country is prepared to contribute to global energy security as tensions threaten oil flows.
He noted that several African countries are increasingly sourcing fuel from the Dangote Refinery, while global markets reacted sharply to the crisis after U.S.
President Donald Trump threatened to strike Iranian power plants if the Strait of Hormuz was not reopened. Oil prices surged, with Brent crude closing at $112.19 per barrel, its highest level since 2022.