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CPPE warns inflationary conditions remain severe for households, businesses

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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.

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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.


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Business

Nigeria’s power plants operated at 86% capacity in August — NERC

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The latest operational performance report by the Nigerian Electricity Regulatory Commission (NERC) has shown that Nigeria’s grid-connected power plants operated at an average of 86 per cent of their available capacity in August 2026.

This was one of the major highlights of the NERC’s August 2026 factsheet report published on Thursday. The report showed that Nigeria’s power plants had an average available capacity of 4,758 megawatts (MW) during the month under review, while average hourly generation was pegged at 4,102MW.

According to the report, about 656MW of the available generation capacity was not utilised on average during the period.

Among the major energy producers, Kainji_1 recorded a 98 per cent load factor, generating 345MW out of 352MW available capacity, while Afam_2 recorded 99 per cent, with 262MW generated against 265MW available.

It said Egbin_1 operated at 96 per cent, generating 333MW from 347MW of available capacity, while Ihovbor_2 recorded 92 per cent, generating 418MW from 454MW of available capacity.

Other major plants listed included Delta_1 at 80 per cent load factor, Zungeru_1 at 72 per cent, Odukpani_1 at 74 per cent, Shiroro_1 at 87 per cent, Jebba_1 at 83 per cent, and Okpai_1 at 87 per cent.

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Frequency, voltage stability breached limits

Despite the relatively high utilisation rate, NERC reported breaches of prescribed grid frequency and voltage limits during the month.

The commission said the average lower grid frequency was 49.34Hz, while the average upper grid frequency was 50.67Hz, exceeding the prescribed operating range of 49.75Hz to 50.25Hz.

Similarly, it noted that the monthly average lower grid voltage was recorded at 302.29 kilovolts (kV), while the average upper grid voltage stood at 349.68kV.

NERC said both figures exceeded the prescribed voltage range of 313.50kV to 346.50kV.

The data showed significant differences in plant utilisation.

Olorunsogo_1 recorded a 100 per cent load factor, generating 115MW from 115MW of available capacity. Omoku_1 and Igbafо_1 also recorded 100 per cent utilisation.

Omotosho_1 generated 148MW from 149MW available, representing a 99 per cent load factor, while Dadin-Kowa_1 recorded 98 per cent after generating 35MW from 36MW available.

READ ALSO: DisCos bill N250.79bn, collect N205.53bn in July — NERC

However, some plants recorded substantially lower utilisation. Afam_1 operated at 67 per cent, while Ikeja_1 recorded 76 per cent and Ihovbor_1 79 per cent.

Several listed plants recorded zero generation during the month, including Sapele_2, Alaoji_1, Geregu_2 and Ibom Power_1.

The commission’s data also showed that Olorunsogo_2 generated 87MW from 109MW available, while Sapele_1 generated 25MW from 27MW available.

Overall, the August figures indicate a grid operating at relatively high utilisation of available generating capacity, while frequency and voltage excursions remained notable operational issues.


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Coronation Insurance Revenue Grows By 51% to N74.8bn in FY2025

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Coronation Insurance Plc has reported significant growth in insurance revenue and balance-sheet strength for the financial year ended December 31, 2025.

A statement released by the insurer after its 68th Annual General Meeting held in Lagos, the company’s Group insurance revenue rose by 51% N74.8 billion when compared with N49.5 billion achieved in 2024.

Insurance service result also rose by 93%from N5.5 billion to N10.6 billion during the year, while total assets rose by 27.7% cent to N98.1 billion.

Shareholders’ funds increased by 21.9% from 39.8 billion to N48.5 billion.

Profit before tax, however, declined to N9.6 billion from N13.8 billion in 2024, principally because the Company did not record the significant net foreign exchange gain that contributed to the previous year’s result.

Speaking at the AGM, Mutiu Sunmonu, Chairman, Coronation Insurance Plc, said the Company’s 2025 performance demonstrated the importance of building resilience while navigating a changing operating environment.

“The performance of Coronation Insurance in 2025 reflects a business that continued to grow while responding responsibly to significant changes in the market. Our focus remains on strengthening the business, protecting policyholders and creating sustainable value for our shareholders.”

Olamide Olajolo, Managing Director/CEO, Coronation Insurance Plc, said the Company’s revenue growth reflected the strength of its diversified business model, distribution capabilities and customer-focused strategy.

“We entered 2026 with a stronger operating platform, a broader distribution base and greater capacity to respond to the evolving needs of our customers. Our task now is to translate that foundation into deeper market participation, stronger customer relationships and sustainable growth.”

The Company also highlighted the performance of its bancassurance partnership with Access Bank, which generated N19.4 billion in Gross Written Premium for the Group in 2025, compared with N13.6 billion in 2024.

A representative of the Company’s shareholders, Mrs. BisiBakare, said:“We commend the Board, Management and staff for successfully meeting the recapitalisation requirements. We also recognise the progress recorded by the Company during the year. This achievement reflects the strength and resilience of the business, and we look forward to seeing the Company build on this foundation to deliver sustained growth and greater value for shareholders.”

The AGM considered the Company’s audited financial statements and other resolutions relating to its governance, Board composition, Audit Committee and future oversight

The post Coronation Insurance Revenue Grows By 51% to N74.8bn in FY2025 appeared first on Business Today NG.

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