Connect with us

Business

CPPE warns inflationary conditions remain severe for households, businesses

info

Published

on

468939862 570688608903404 8583644854384931658 n.jpg

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.

PT WHATSAPP CHANNEL

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.


Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Senate Passes Bill to Rename NAICOM as Insurance Regulatory Commission

info

Published

on

By

BY NKECHI NAECHE-ESEZOBOR—The Senate on Tuesday passed a bill seeking to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission.

If enacted, the proposed law will establish an Insurance Regulatory Commission and repeal the existing legislation that established the National Insurance Commission (NAICOM).

Under the proposed framework, the new regulatory body would be responsible for providing guidance to the Federal Government on policies concerning natural disaster risks and other important issues affectcing the insurance sector.

The bill was sponsored by the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru (APC, Lagos East).

Presenting the report, Abiru said “The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business.”

“Despite its the commission’s vsignificant contributions, the enabling law has become obsolete, failing to align with current realities and global best practices, and unable to keep pace with the evolving nature of the insurance industry, exposing numerous gaps in the law and necessitating urgent amendments,” he said.

Regarding administrative leadership, Abiru explained that the draft law outlines precise criteria for director appointments, guaranteeing that solely qualified specialists with backgrounds in risk mitigation, law, financial systems, corporate management, and underwriting obtain leadership seats.

He noted further that this updated statute equips the agency to offer enhanced strategic guidance and supervisory control, driving the expansion of the nation’s coverage market

The post Senate Passes Bill to Rename NAICOM as Insurance Regulatory Commission appeared first on Business Today NG.

Continue Reading

Business

31 firms win 37 oil, gas blocks in Nigeria’s 2025 Licensing Round

info

Published

on

By

C35e83 6f2c8070870e458ca00632c635729e50mv2 d 2507 1673 s 2.webp

Thirty-one companies have emerged winners of 37 oil and gas blocks in Nigeria’s 2025 Licensing Round following the conclusion of the commercial bid conference held in Abuja on Tuesday.

The bidding process, held at the Transcorp Event Centre, attracted 143 companies, which submitted about 200 bids for 37 of the 50 oil and gas blocks offered by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The blocks span multiple terrains, including the Niger Delta onshore, shallow-water and deep-offshore areas, as well as the Benin, Anambra, and Chad basins and the Benue Trough.

While 37 blocks received bids, the remaining 13 attracted no offers.

The NUPRC described the outcome as significant, noting that it is the first time Nigeria’s frontier basins—including the Benue Trough, Chad Basin, Anambra Basin and Benin Basin—have attracted such strong investor interest.

Among the successful bidders are SSonic Petroleum Limited, CFP Pipeline and Flowlines, Dutchford E&P Limited, Attabanson Global Company Limited, Rosem Energy Limited, Pivot-GIS Limited, Network E&P, Asharami, LexOil, BVOF, Gupsco Energy Limited, Saratoga, Volante, Concept-Reel Petroleum Services Limited, Clinton Oil Field, Nuway Oaklane Limited, Ramec, Italia, Blueridge E&P, Up Energies Limited, AYM Shafa, Blackrock Holdings Limited, Funtay Integrated Business Limited, Riparian Development and Production Limited, Nikstallis, Stardeep Petroleum, Dakoda & U Limited, Southborne Oil and Gas Limited, Lanaka Petroleum, Highban Resources Limited and Eyre Energy Limited.

The commission said the companies will receive final awards only after paying the required signature bonuses and obtaining the approval of the Minister of Petroleum Resources, in line with the Petroleum Industry Act (PIA) 2021.

Speaking after the exercise, the NUPRC Chief Executive, Oritsemeyiwa Eyesan, thanked President Bola Tinubu for supporting the successful conduct of the licensing round.

She congratulated the successful bidders and urged them to promptly pay their signature bonuses and develop the awarded assets, warning that undeveloped assets could be withdrawn under the commission’s “drill or drop” policy.

The commercial bid conference was monitored by representatives of the Federal Ministry of Petroleum Resources, the Federal Ministry of Finance, the Nigeria Extractive Industries Transparency Initiative (NEITI) and other stakeholders to ensure transparency and compliance with applicable laws.

Stay ahead with real-time reports, breaking news, and exclusive insights delivered directly to your phone. Don’t settle for outdated information. Join PLATEAUREPORTS NEWS on WhatsApp for 24/7 updates.

Join Our Whatsapp Channel

 

Continue Reading

Trending