- Food inflation dropped significantly to 8.89% year-on-year from 29.63% in December 2025
- Muda Yusuf described the trend as “real disinflation” rather than temporary price volatility
- Yusuf warned that prolonged declines in farm-gate prices could weaken farmers’ incomes and rural stability
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, has said Nigeria’s January 2026 inflation figures point to a “real disinflation” trend, easing pressure on households while raising concerns about the sustainability of farmers’ incomes.
Source: UGC
The comments followed the latest data released on Monday by the National Bureau of Statistics (NBS), which showed that headline inflation declined to 15.1% in January, slightly down from 15.15% in December 2025.
The NBS also reported that food inflation fell sharply to 8.89% year-on-year in January, compared to 29.63% recorded in December 2025.
Broad-Based Price Easing
In a statement issued on Monday, Yusuf said the moderation in both headline and food inflation indicates that price pressures are easing beyond food items and across other components of the consumer basket.
As reported by The Cable, the CPPE CEO said the inflation trend reflects an important macroeconomic shift with implications for household welfare, monetary policy direction, agricultural sustainability and private-sector investment decisions.
Yusuf noted that the slowdown in food inflation carries significant welfare benefits because food accounts for the largest share of household spending in Nigeria.
He explained that lower food prices are expected to improve purchasing power, particularly among low-income households, reduce food-security concerns and support a rebound in consumer demand for non-food goods and services.
If the trend continues, he said, it could stimulate retail trade, manufacturing capacity utilisation and service-sector growth.
Concerns Over Farmers’ Incomes
Despite the positive outlook for consumers, Yusuf cautioned that a prolonged decline in food prices may weaken farm incomes and rural economic stability.
He warned that sustained weakness in farm-gate prices could reduce farmers’ revenues and investment capacity, weaken rural purchasing power and discourage agricultural production. This, he added, could eventually lead to supply shortages and renewed inflationary pressures.
“There is a critical need to balance consumer affordability with producer sustainability to safeguard national food security,” he said.
Implications for Monetary Policy
On monetary policy, Yusuf said the disinflation trend provides room for cautious and gradual easing. However, he stressed that decisions should remain data-driven, noting that core inflation and the 12-month average inflation rate remain elevated.
He urged the government to introduce targeted measures to protect farm incomes while maintaining affordability. Suggested interventions include productivity support, minimum guaranteed prices for selected crops, strategic food reserves and expanded agro-processing capacity.
Yusuf also stated that easing inflation, particularly in food, signals gradual recovery in real household demand and could create opportunities in consumer goods, retail, logistics and services.
Source: UGC
According to him, sustained disinflation may support gradual interest-rate moderation and improved equity market valuations, encouraging long-term productive investment over short-term inflation hedging.
He described the January inflation outcome as a meaningful step toward macroeconomic stabilisation but stressed that consolidating the gains while protecting agricultural productivity and rural livelihoods will be critical for achieving durable and inclusive growth.
Nigeria’s food inflation hits 10-year low
We earlier reported that Nigeria recorded its lowest food inflation rate in a decade at 8.89% in January 2026.
Government policies and a stronger naira contributed to reduced staple food prices nationwide.
Meanwhile, state-by-state analysis showed significant regional disparities in food inflation rates across Nigeria.