The Centre for the Promotion of Private Enterprise has called on the Federal Government to prioritise stabilising energy costs and widening access to affordable financing for productive sectors, as fresh inflation data shows noticeable improvement but continued pressure on businesses.
The organisation explained in a policy document that despite the recent moderation in inflation, many enterprises still operate under heavy strain due to high energy expenses and limited financing options. It emphasised that energy remains one of the biggest cost burdens for businesses and one of the strongest drivers of inflation, making stability in the power sector essential for sustaining economic recovery. It also recommended stronger investments in electricity infrastructure, wider support for off-grid renewable energy solutions, and broader incentives to encourage efficient production systems that reduce energy dependence, especially for MSMEs and rural-based enterprises.
Beyond energy-related reforms, the organisation stressed that the country’s high-interest-rate environment continues to restrict expansion opportunities for businesses, discourage new investments, and limit agricultural and manufacturing output. It explained that productive sectors need financing that is accessible, affordable, and structured to stimulate growth. It added that expanding credit guarantee mechanisms and strengthening development finance institutions have become urgent for meaningful progress in the real economy.
Nigeria’s official inflation figures for October indicate a significant easing. According to national data, headline inflation slowed to 16.05 percent in October from 18.02 percent in September 2025. Year-on-year headline inflation also fell to 17.82 percent, down from 33.88 percent recorded in the same month of the previous year. Food inflation similarly recorded a major decline, dropping to 13.12 percent from 39.16 percent a year earlier.
The government recently announced that more than 153,000 citizens have benefited from about N30 billion in affordable credit disbursed under a national consumer credit scheme, covering items such as vehicles, solar energy solutions, home improvements, and digital devices. A complementary youth credit programme has also taken off, expanding access to young people including members of the National Youth Service Corps. Earlier this year, the consumer credit agency introduced a financing programme to support the purchase of locally assembled vehicles.
According to the CPPE, these interventions are timely but must be backed by deeper structural reforms. The organisation noted that sustained progress on inflation depends on addressing long-standing bottlenecks in energy supply, production financing, and market competitiveness. It added that strengthening the resilience of small and medium-sized enterprises, farmers, and manufacturers is essential for long-term economic stability and growth across the country.
