Lagos, Aug. 18, 2025 – Muda Yusuf, the Director of Centre for Promotion of Private Enterprise (CPPE), has called for coordinated policy measures to ensure price stability across the country.
Yusuf made the suggestion in a statement on Sunday against the backdrop of the just released July 2025 inflation report, which he said, provided a basis for cautious optimism.
He said the report indicated that while progress had been made in moderating headline and core inflation, the persistence of food and month-on-month price increases highlighted unresolved structural weaknesses.
Yusuf said the inflation figures presented a mixed outlook for the Nigerian economy with notable improvements in some key indicators with lingering risks that demand policy attention.
According to the July inflation report, headline inflation declined for the fourth consecutive month, easing from 22.22% in June to 21.88% in July, a deceleration of 0.34% and month-on-month food inflation also moderated, falling from 3.25% in June to 3.12% in July,
He said core inflation also posted marginal declines of -0.03% on year-on-year basis and a sharp slowdown month-on-month from 3.46% to 0.97%.
He said this this outlook called for caution and sustained reforms and suggested a coordinated mix of monetary, fiscal, and structural interventions to consolidate recent gains and steer the economy to sustained price stability.
He suggested foreign exchange stability to maintain calm in the foreign exchange market market to anchor inflation expectations and structural reforms to address constraints such as high logistics and import costs, insecurity, climate risks, and port inefficiencies that elevate costs and sustain inflation.
The expert also called for fiscal discipline to ensure prudent government spending and manage liquidity injections effectively to prevent fueling inflationary pressures.
He also suggested monetary innovation to move beyond conventional tightening tools (CRR, MPR) toward more creative measures to manage liquidity in the economy as the lending rate in the economy had risen above 30% for most businesses.
