By David Akinmola
The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to address worsening insecurity and food supply constraints as part of efforts to contain inflationary pressures and reduce the cost of living for Nigerians.
The economic policy advocacy group said recent inflation trends underscore the need for structural interventions beyond monetary policy measures, stressing that food supply disruptions remain a major driver of rising consumer prices.
Speaking on the latest inflation data, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, noted that insecurity in major food-producing areas continues to hamper agricultural activities, disrupt supply chains and contribute to higher food prices across the country.
According to him, efforts to achieve sustainable price stability must include measures aimed at improving security in farming communities, enhancing food production and addressing logistics challenges that increase the cost of moving agricultural produce to markets.
He argued that while the Central Bank of Nigeria’s monetary tightening measures may help moderate demand-side inflationary pressures, they are unlikely to sufficiently address inflation driven by supply-side constraints.
“The government needs to pay greater attention to the structural factors fueling inflation, particularly insecurity, food supply shortages and rising logistics costs. These are critical issues that require urgent intervention,” Yusuf said.
The CPPE noted that insecurity across parts of the country has continued to affect farming activities, limiting access to farmlands and reducing agricultural output at a time when food demand remains strong.
The organisation also expressed concern over post-harvest losses, inadequate storage facilities and poor transportation infrastructure, which it said contribute significantly to food inflation.
According to the think tank, improving security in agricultural belts and investing in rural infrastructure could help boost food production, ease supply bottlenecks and reduce pressure on consumer prices.
The group further urged policymakers to strengthen support for farmers through improved access to financing, agricultural inputs and extension services to enhance productivity and food availability.
Analysts said food inflation remains one of the biggest contributors to Nigeria’s headline inflation rate, accounting for a substantial share of household expenditure and significantly affecting the purchasing power of consumers.
They noted that addressing supply-side challenges in the agricultural sector could have a more immediate impact on inflation than relying solely on interest rate adjustments.
The CPPE’s recommendation comes amid growing concerns over the impact of rising prices on households and businesses, with many Nigerians struggling to cope with elevated food, transportation and energy costs.
The organisation maintained that a combination of security improvements, enhanced agricultural productivity and targeted investments in food supply chains would be critical to achieving lasting price stability and supporting economic growth.
As policymakers continue efforts to tame inflation, stakeholders say resolving the structural challenges affecting food production and distribution will remain central to reducing inflationary pressures and improving living standards across the country.
