CPPE urges government to cut energy, transport costs amid inflation

The Centre for the Promotion of Private Enterprise (CPPE) has urged the federal and state governments to intensify measures to reduce energy costs and improve transportation infrastructure to mitigate the impact of inflation in the country.
Chief Executive Officer of CPPE, Muda Yusuf, made the call in a statement on Friday in Lagos while reacting to the April 2026 inflation figures released by the National Bureau of Statistics (NBS).
The headline inflation rose marginally from 15.38 per cent in March to 15.69 per cent in April, while month-on-month inflation across major indicators showed signs of moderation.
This development, Mr Yusuf said, shows that inflationary pressures remain elevated despite the relatively moderate pace of increase.
He said the country’s inflation outlook in April reflected a fragile disinflation process amid mounting global and domestic cost pressures.
“Nonetheless, inflation conditions remain severe from a welfare and business cost perspective.
“Food inflation stood at 16.06 per cent, while core inflation remained elevated at 15.86 per cent.
“Major inflation drivers remain food, transportation, energy products, healthcare, and restaurant services, which together accounted for about 87 per cent of the inflation pressure recorded in April,” he said.
Mr Yusuf said these expenditure items remained critical because they absorb the bulk of household income, particularly among low-income Nigerians.
He said ongoing geopolitical tensions involving Iran, Israel, and the United States had also intensified global inflationary risks.
According to him, the conflict has triggered renewed volatility in the global oil market, pushing up crude oil prices and transmitting higher energy costs into the domestic economy.
He noted that rising petrol, diesel, and gas prices were fuelling transportation, logistics, and production costs across sectors, with significant pass-through effects on food prices and overall consumer inflation.
Mr Yusuf said the development underscored the structural and supply-side nature of Nigeria’s inflation challenge.
“Monetary tightening alone cannot resolve inflation driven by energy costs, logistics inefficiencies, food supply disruptions, and weak infrastructure conditions.
“Additional monetary tightening could worsen financing costs for businesses, weaken investment, and further constrain productivity growth,” the CPPE boss said.
Mr Yusuf advised businesses to prioritise energy efficiency, adopt dynamic pricing models, and embrace affordability-driven product strategies as consumers become increasingly price-sensitive.
He urged governments to strengthen food supply systems, improve trade facilitation, and boost domestic productivity.
He added that sustained inflation moderation would depend largely on structural reforms and targeted interventions to reduce the cost of food, transportation, and energy in the economy.
(NAN)
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