By Fredrick Ameh
Nigeria’s headline inflation has risen to 15.38% per the latest data released by the National Bureau of Statistics (NBS).
Up from 15.06% in February, the uptick signals a persistent rise in the cost of living that continues to strain household purchasing power and business operations nationwide.
This is as inflationary pressures intensified significantly on the Consumer Price Index (CPI) as it climbed to 135.4.
This represents a 5.4-point increase from February’s 130.0, according to the latest data released by the National Bureau of Statistics (NBS).
The report highlights a particularly worrying trend in short-term price movements, with month-on-month inflation surging by 4.18%.
This sharp acceleration reflects rapid price increases within a 30-day window, nearly doubling the rate recorded in the previous month.
Food prices remain a primary catalyst for this trend; the food inflation rate reached 14.31% in March, supported by a 4.17% month-on-month increase that underscores deep-seated challenges in agricultural supply and affordability.
Commenting, the Centre for the Promotion of Private Enterprise (CPPE), led by CEO Dr. Muda Yusuf, noted that this resurgence is largely a cost-push phenomenon driven by renewed energy price pressures.
High costs for gas, diesel, and petrol are being rapidly transmitted through the economy, escalating production and distribution expenses.
According to the CPPE, food and transportation now account for an estimated 70% of total inflationary pressure.
The policy think-tank expressed particular concern over the private sector dominance in public transportation, where highly unionized operators possess significant pricing power, allowing them to pass fuel cost increases directly to commuters without regulatory restraint.
Addressing the welfare implications, the CPPE emphasized that because food and transport are non-discretionary expenditures, rising prices lead to an immediate erosion of real income and increased vulnerability, especially in rural areas.
To combat these trends, the center is calling for urgent government intervention to boost agricultural productivity through improved security and infrastructure, rather than relying on food imports.
The CPPE also cautioned the Central Bank of Nigeria against additional monetary tightening.
Dr. Yusuf argued that because inflation is driven by structural inefficiencies and energy costs rather than excess demand, raising interest rates would be ineffective.
Instead, such a move could stifle economic growth and place additional financing constraints on the real sector.
The report concludes that without a shift toward addressing these supply-side drivers, the fragile stability achieved in recent months remains under serious threat.