Call for Enhanced Food Security to Combat Rising Inflation in Nigeria
The Center for the Promotion of Private Enterprise (CPPE) is urging the Nigerian government to bolster food security and tackle insecurity in rural areas as essential measures to mitigate inflation. This recommendation comes in light of the latest inflation statistics released by the National Bureau of Statistics (NBS).
Nigeria’s headline inflation rate climbed to 15.93% in May 2026, an increase from 15.69% in April. This rise in consumer prices continues to exert pressure on households and businesses despite a gradual slowing in the pace of monthly price hikes.
Analysis of Inflation Drivers
CPPE observed that the headline inflation rate increased by a mere 0.24% between April and May. This think tank attributes the uptick partly to recent geopolitical tensions in the Middle East, which have disrupted global energy markets and supply chains. The primary contributors to this inflation include food and beverages, transportation, housing, energy, health, and education—together making up approximately 87% of the overall inflation figure. This concentration emphasizes how the burden of inflation is felt predominantly in the basic necessities consumed by ordinary Nigerians.
According to CPPE, the impacts of insecurity are particularly acute, resulting in reduced agricultural production and tighter food supplies. Consequently, food inflation has accelerated, necessitating that addressing insecurity becomes not only a matter of safety but a crucial strategy for managing inflation.
Recommendations for Government Interventions
The report suggests that government initiatives should prioritize improving food security and enhancing logistics infrastructure. Investments in mass transit, rail transport, and energy security are seen as vital, alongside restoring safety in rural regions. These measures aim to alleviate some of the inflationary pressures facing consumers.
Particularly concerning is the spike in food inflation, which has reached 16.96%, outpacing headline inflation and eroding household purchasing power. Factors such as skyrocketing crude oil prices, rising marine insurance costs, disrupted shipping routes, and escalating import expenses are all contributing to the upward push on domestic prices.
Impact of Insecurity on Agricultural Production
CPPE highlighted that insecurity in critical food-producing areas is displacing farming communities and diminishing arable land. Additionally, the disruption of agricultural supply chains and increased transportation costs exacerbate the already tight food supplies, putting further strain on food prices. The group asserts that Nigeria’s inflation challenge is primarily cost-push in character, underlining the need for solutions aimed at reducing production and distribution costs rather than relying solely on monetary policy adjustments.
Encouraging Month-on-Month Trends
On a more positive note, CPPE noted that recent month-on-month figures show a decelerating trend. The headline inflation rate slowed from 2.13% in April to 1.75% in May, with food inflation also declining from 3.63% to 2.98%. These trends indicate a potential easing of price pressures, offering a glimmer of hope in an otherwise challenging economic environment.
Current Inflation Statistics
The Consumer Price Index (CPI) in Nigeria rose from 138.3 points in April to 140.7 points in May, signaling persistent inflationary pressures across various sectors of the economy, as reflected in the latest report from the NBS. Year-on-year, the headline inflation rate in May 2026 stood at 15.93%, up from 15.69% in April. Month-on-month, the inflation rate declined to 1.75% in May from 2.13% in April. Notably, the current inflation rate remains below the 26.06% recorded in May 2025, showcasing significant disinflation over the past year.
CPPE concluded that the recent inflation rise appears to stem from external shocks and structural challenges within the domestic landscape, rather than signs of larger macroeconomic instability. The think tank advocates for policy attention focused on addressing insecurity, alleviating food supply challenges, and managing transport and energy costs as critical components in the fight against inflation.
