Aug 19, 2025 (Daily Trust/All Africa Global Media via COMTEX) --
The Director/CEO Centre for the Promotion of Private Enterprise [CPPE] has urged the federal government to take the drop in inflation figures with cautious optimism as there are still some reforms needed to strengthen the rise in prices of goods and services.
The National Bureau of Statistics (NBS) had stated that the inflation figure dropped in the month of July to 21.88 percent, marking a four-month decline.
But Yusuf in a statement yesterday said despite these gains, pressures persist as month-on-month headline inflation rose from 1.68% in June to 1.99% in July, while year-on-year food inflation inched up from 21.97% to 22.74%.
He said these movements underscore the continuing vulnerability of the economy to supply-side shocks.
He added that the outlook calls for caution and sustained reforms for the government to maintain calm in the forex market to anchor inflation expectations.
He also said there is the need to address constraints such as high logistics and import costs, insecurity, climate risks, and port inefficiencies that elevate costs and sustain inflation.
He stated that there should be prudent government spending and managing liquidity injections effectively to prevent fueling inflationary pressures.
He also called for monetary innovation, "moving beyond conventional tightening tools (CRR, MPR) toward more creative measures to manage liquidity in the economy, given that the lending rate in the economy had risen above 30% for most businesses."
"The July 2025 inflation report provides a basis for cautious optimism. While progress has been made in moderating headline and core inflation, the persistence of food and month-on-month price increases highlights unresolved structural weaknesses. A coordinated mix of monetary, fiscal, and structural interventions will be required to consolidate recent gains and steer the economy toward sustained stability."
"The July 2025 inflation figures present a mixed outlook for the Nigerian economy, with notable improvements in some key indicators but lingering risks that demand policy attention," he added.
COMTEX_468153549/2029/2025-08-19T08:05:36
by Faruk Shuaibu
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