Lagos, April 16, 2026 – Dr Muda Yusuf, the Chief Executive of the Centre for the Promotion of Private Enterprise (CPPE), a private think tank, has attributed the high inflation rate in March 2026 to the increasing energy costs caused by the Iran war.
Yusuf made this observation on Wednesday in a policy brief on the inflation report.
He said the inflation rate is largely reflective of renewed energy price pressures which continue to permeate production, transportation and distribution costs across the economy.
“Energy remains a critical cost driver in Nigeria, given the persistent reliance on gas, diesel and petrol for power generation, logistics and industrial operations.
The implications are far-reaching. Rising energy costs are quickly transmitted into higher transportation costs, increased food prices, escalating production and distribution expenses
“This cost-push dynamic explains the sharp increase in month-on-month inflation and signals that the underlying inflationary pressures are far from subdued.”
The CPPE bsss said the March 2026 CPI report highlighted a critical development in Nigeria’s inflation trajectory, where the earlier gains in disinflation are now being threatened by a resurgence of cost-driven pressures, particularly from energy, food and transportation.
“This emerging trend suggests that while inflation had been moderating on a year-on-year basis, underlying structural vulnerabilities remain largely unresolved, with recent month-on-month increases pointing to renewed price momentum.
“The situation calls for urgent and targeted policy responses, as failure to address these supply-side drivers could reverse the fragile stability achieved and deepen the cost-of-living challenges facing households and businesses.
“While disinflation trends remain evident on a year-on-year basis, the resurgence of monthly inflation pressures signals that macroeconomic stability is still fragile.
“The policy response must, therefore, shift from a narrow focus on monetary tools to a broader strategy that addresses the structural drivers of inflation, particularly in energy, food and transportation.
“Without decisive action in these areas, the gains recorded in inflation moderation may prove temporary, while households and businesses continue to grapple with significant cost pressures.
“CPPE reiterates that the current inflationary pressures are predominantly cost-push in nature, driven by energy, logistics and structural inefficiencies—not excess demand.
“In this context, further monetary tightening would be ineffective in addressing the root causes of inflation, high interest rates would hurt economic growth, investment and productivity and the real sector would face increased financing constraints, undermining recovery efforts
“We therefore strongly caution against using the recent uptick in inflation as a basis for additional monetary tightening.”
