The Centre for the Promotion of Personal Enterprise (CPPE) has warned that current adjustments to Nigeria’s Shopper Value Index (CPI) methodology could have created credibility gaps, doubtlessly undermining confidence in official inflation information.
That is based on a coverage transient signed by its CEO, Dr. Muda Yusuf on Sunday.
CPPE famous that whereas inflation has proven a disinflationary pattern over the previous 12 months, alterations to key CPI computation parameters have raised doubts amongst traders, analysts, companies, and policymakers.
The organisation pressured that inflation information is central to financial decision-making, influencing financial coverage, fiscal planning, funding methods, wage negotiations, and enterprise pricing selections.
What CPPE is saying
CPPE highlighted the issues raised by the CPI methodology adjustments, noting that even correct information can lose its usefulness if stakeholders query how it’s produced.
- “Nevertheless, changes to CPI computation parameters have created credibility gaps, undermining the boldness of traders, analysts, companies, and policymakers,” the organisation acknowledged.
- “Current adjustments within the methodology for computing the Shopper Value Index (CPI) have raised issues concerning the credibility of the inflation information. Though this has not materially affected the disinflation pattern over the previous 12 months,” CPPE added.
The group emphasised that sustaining belief in official statistics is essential for efficient policymaking and market confidence.
Backstory
Final week, the Nationwide Bureau of Statistics (NBS) reported that Nigeria’s headline inflation declined sharply to fifteen.15 per cent in December 2025, following a evaluation of its inflation measurement methodology.
The CPI information confirmed that the CPI rose to 131.2 factors in December from 130.5 factors in November, indicating a slower tempo of improve in common costs throughout the financial system.
The NBS clarified that the December figures mirrored a change in methodology following the rebasing of the CPI.
Underneath the brand new strategy, year-on-year inflation and sub-indices had been calculated utilizing a twelve-month index reference interval, with the typical CPI for 2024 set to 100, slightly than a single-month reference base.
The NBS earlier famous that it’ll publish two separate inflation figures for December after adjustments to its client value index (CPI) methodology brought about the headline price to greater than double.
Why this matter
Credible inflation information straight impacts financial planning and market conduct. CPPE warned that perceived inconsistencies might have broader financial penalties.
- Inflation figures affect the selections of policymakers, traders, and companies.
- Confidence in official information helps wage negotiations and pricing methods.
- Any erosion of belief might complicate fiscal and financial coverage formulation.
Making certain reliability and transparency in CPI computations is due to this fact important for sustaining investor confidence and market stability.
What it’s best to know
- Nigeria’s 2025 inflation path was revised upward after the NBS reviewed its CPI methodology in December 2025, though the broader disinflation pattern stays intact.
- The IMF endorsed Nigeria’s December 2025 inflation final result and the NBS’s revised methodology, saying the adjustments align with worldwide greatest apply and assist macroeconomic stability.
- CPPE famous that reliable inflation information is essential for enhancing coverage effectiveness, supporting Nigeria’s financial reform agenda, and restoring confidence in official financial indicators.
