Business
CPPE warns inflationary conditions remain severe for households, businesses
The Centre for the Promotion of Private Enterprise (CPPE) has warned that Nigeria’s April inflation outlook points to a fragile disinflation process, noting that the conditions remain severe for households and businesses in the country.
The think tank made this known in a statement signed by its Chief Executive Officer, Muda Yusuf, on Friday, noting that inflation conditions remain severe from a welfare and business cost perspective.
The National Bureau of Statistics (NBS), in its April inflation report on Friday, stated that headline inflation rose marginally from 15.38 per cent in March to 15.69 per cent in April.
CPPE said the trend indicates that although inflationary pressures remain elevated, the pace of acceleration was relatively moderate.
It highlighted some positive signals in short-term inflation trends, pointing to broad-based moderation across key month-on-month indicators.
The NBS report also shows that headline month-on-month inflation declined by 2.05 per cent, food inflation eased by 0.54 per cent, core inflation declined by 3.0 per cent, while urban inflation moderated by 1.3 per cent.
“More encouraging, however, was the moderation in the month-on-month inflation metrics across virtually all major indicators,” the think tank stated.
It also showed that rural inflation dropped sharply by 3.9 per cent, which CPPE said suggests a weakening in short-term inflationary momentum.
Warning
Despite this improvement, CPPE warned that inflationary conditions remain severe for households and businesses. It noted that food inflation stood at 16.06 per cent, while core inflation remained elevated at 15.86 per cent.
“The dominant inflation drivers continue to be food, transportation, energy products, healthcare and restaurant services, which together accounted for about 87 per cent of the inflation pressure recorded in April.
“These are essential expenditure items which absorb the bulk of household income, particularly among low-income Nigerians,” CPPE said.
The think tank attributed rising inflation risks partly to geopolitical tensions involving Iran, Israel, and the United States, which have increased volatility in global oil markets and pushed up energy costs.
The group stressed that Nigeria’s inflation challenge remains structural and supply-driven, arguing that monetary tightening alone is insufficient to address the underlying cost pressures in the economy.
“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.
“Rising petrol, diesel and gas prices are fuelling transportation, logistics and production costs across sectors, with significant pass-through effects on food prices and overall consumer inflation.
“This further underscores 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,” it stated.
Solutions
The organisation advised that additional monetary tightening could worsen financing costs for businesses, weaken investment, and further constrain productivity growth.
It called for a stronger focus on supply-side reforms to address production and distribution bottlenecks.
READ ALSO: FG’s 2026 fiscal measures favour local production but pose risks for importers – CPPE
CPPE called on governments at all levels to intensify measures to reduce energy costs, while also advising businesses to prioritise energy efficiency and dynamic pricing models.
“The policy priority should therefore shift more decisively towards supply-side interventions. Governments at both federal and state levels should intensify measures to reduce energy costs, improve transportation infrastructure, strengthen food supply systems, enhance trade facilitation and support domestic productivity.
“For businesses, the operating environment remains extremely challenging. Firms should prioritise energy efficiency, dynamic pricing models, consumer segmentation and affordability-driven product strategies, including smaller pack sizes, as consumers become increasingly price-sensitive and discretionary spending weakens,” CPPE stated.
The Federal Airports Authority of Nigeria (FAAN) has assured passengers that airport operations will continue despite the ongoing industrial action by aviation unions.
FAAN, in a statement issued on Tuesday, said it was working with aviation agencies, airlines, security agencies and other stakeholders to minimise the impact of the industrial action and ensure that airport operations were not disrupted.
The authority said it was closely monitoring developments and remained committed to maintaining safe, secure and orderly operations at Nigeria’s airports.
The assurance comes after the industrial action disrupted flight operations earlier on Tuesday, with some airlines suspending or rescheduling services following restrictions on access to airport terminals in Lagos and Abuja.
Air Peace, Enugu Air, and United Nigeria Airlines announced operational disruptions, affecting some passengers with flights suspended or rescheduled.
The action followed grievances by aviation unions over the alleged restriction of workers’ freedom to unionise and the alleged non-remittance of the five per cent Ticket Sales Charge (TSC) collected from passengers.
The unions include the National Union of Air Transport Employees, Air Transport Services Senior Staff Association of Nigeria, and the National Association of Aircraft Pilots and Engineers, with the Nigeria Labour Congress and the Trade Union Congress backing the action.
PREMIUM TIMES earlier reported that the Nigeria Civil Aviation Authority (NCAA) Director-General, Chris Najomo, urged the unions to suspend the industrial action pending the return of the Minister of Aviation and Aerospace Development, Festus Keyamo, who the regulator said was working to resolve the dispute.
The NCAA appealed to all parties to embrace dialogue and cooperation, expressing confidence that the matter would be resolved and that normal flight operations would be restored as soon as practicable. The regulator also assured passengers that flight safety had not been compromised and that it continued to discharge its statutory safety oversight responsibilities.
FAAN moves to minimise disruption
FAAN said it recognised the legitimate role of organised labour and supported efforts by Mr Keyamo and other stakeholders towards an amicable resolution of the dispute.
“In the interim, FAAN is working closely with the relevant aviation agencies, airlines, security agencies and other stakeholders to minimise the impact of the industrial action and ensure that airport operations are not disrupted,” the authority said.
The authority also said earlier operational challenges affecting the movement of some flights within the airside environment had been addressed through ongoing inter-agency coordination.
It said measures were being sustained to support the orderly continuation of flight operations.
“FAAN remains committed to ensuring that Nigeria’s airports remain safe, secure, functional and accessible to passengers and other airport users,” it said.
FAAN advised passengers to remain calm and maintain contact with their respective airlines for real-time information about their flights.
READ ALSO: Passengers stranded as airlines suspend, reschedule flights amid aviation unions’ strike
The authority said it remained confident that ongoing engagements under the minister’s leadership would lead to a speedy and mutually acceptable resolution of the dispute.
It also appreciated passengers for their understanding and patience amid the disruption.
The latest assurance comes as airlines continue to adjust their operations in response to the industrial action, with passengers advised to confirm their flight status with their respective airlines before travelling to the airport.
FAAN said its priority remained maintaining safe, secure and functional airports while efforts to resolve the dispute between the unions, airlines and government continue.
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