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Nigeria’s inflation rises to 34.80% in December as CPPE calls for monetary policy adjustments

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Nigeria’s inflation rate surged to 34.80 percent in December 2024 from 34.60 percent in November.

This is according to the latest Consumer Price Index and inflation data released on Wednesday by the National Bureau of Statistics, NBS.

While the country’s inflation continues to rise, the Centre for the Promotion of Private Enterprise, CPPE, has identified tips for its moderation.

The December inflation data showed that the country’s inflation further rose marginally by 0.20 percent due to heightened demand for goods and services during the festive season.

On a year-on-year basis, the December inflation rate marked a significant increase of 5.87 percentage points compared to 28.92 percent in December 2023.

The untamed rise in the Nigeria’s inflation highlights the upward trajectory in consumer prices, driven by economic challenges such as currency depreciation, high energy costs and persistent supply chain disruptions.

“On a year-on-year basis, the headline inflation rate was 5.87 percent higher than the rate recorded in December 2023 (28.92 percent). This shows that the headline inflation rate (on a year-on-year basis) increased in December 2024 compared to the same month in the preceding year (i.e., December 2023),” NBS stated.

Meanwhile, NBS said Nigeria’s food inflation dropped marginally to 39.83 percent in December 2024 from 39.93 percent in November on a year-on-year basis.CPPE reacts

Reacting, the Chief Executive Officer at the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the inflationary pressures continue to be a troubling feature of the Nigerian economy as reflected in December’s inflation rate.

“Though the increase in the December headline inflation was marginal at 0.2% compared with November inflation figures.

”However, Yusuf is optimistic that Nigeria’s inflation would have a positive outlook in 2025 due to moderation in exchange rate volatility and improvement in foreign reserves.

“Meanwhile, the inflation outlook for 2025 promises to be positive for the following reasons: Sustained moderation in exchange rate volatility and improvements in foreign reserves.

“Prospects of easing geopolitical tensions with the inception of the Trump presidency in a few days time.

“And a strong base effect, given the high inflationary pressures experienced in 2024,” he stated.

The economic think tank group, CPPE, also decried the current fixation of the National Assembly on revenue, especially the arbitrary revenue targets for ministries, departments, and agencies.

“Excessive pressure on MDAs to boost revenue and increase IGR has profound inflationary implications.

“The reality is that such pressures are invariably transmitted to investors in the form of higher fees, levies, penalties, import duties, regulatory charges, etc. These outcomes are in conflict with government aspirations to boost investment, curb inflation, and create jobs.

“Revenue targets should be based on empirical studies, absorptive capacity of the economy, and due consideration of the wider economic implications.

“Obsession with revenue would hurt investments, worsen inflationary pressures, aggravate poverty, and impede economic growth.

There should be a careful balancing act between revenue growth aspirations, desire to boost investment, and commitment to moderate inflation,” CPPE stated.

How Nigeria’s inflation rate can drop – CPPE, CPPE highlighted that Nigeria’s inflation can moderate on pause of monetary tightening policy by the Central Bank of Nigeria, reducing fiscal risks.

“To ensure a further moderation in inflationary pressures, CPPE recommends as follows: “Pause on monetary policy tightening and interest rate hikes by the CBN to reduce business operating costs.

“Reduction in fiscal risks to macroeconomic stability through a reduction in fiscal deficit and deceleration in growth of public debt,” the CPPE stated.

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Exclusive: LAGRIDE Drivers Reject Monthly Salary Model For Drive-to-Own

CIG Motors has replaced the drive-to-own scheme with a salaried model, where drivers earn a fixed monthly salary of ₦150,000.

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LagRide drivers are rejecting the new salary model introduced by Choice International Group (CIG), the distributor of GAC motors in Nigeria.

CIG Motors recently took over the full operational control of LagRide from the Lagos State Government, including the management of the vehicles and drivers.

LagRide, a ride-hailing service in Lagos, Nigeria, is owned and operated by a partnership between the Lagos State government and CIG Motors, since 2021, as an alternative to the rickety yellow and black-coloured taxis scattered across the city.

Ohibaba learned that, following the March 2025 full takeover,  CIG had replaced the previous drive-to-own scheme with a salaried model for drivers.

Drive-to-Own Scheme:

The previous scheme allowed drivers to lease GAC vehicles through a down payment and daily installments.

Salaried Model:

CIG Motors has replaced the drive-to-own scheme with a salaried model, where drivers earn a fixed monthly salary of ₦150,000.

Some of the drivers who spoke with our Reporter are complaining that the monthly salary model isn’t favourable, and would likely switch to competitors, the likes of Bolt and Uber.

It was further gathered that the new management of LagRide has commenced retraining programmes for the drivers, batch by batch.

Meanwhile, the Lagos State government, led by Governor Babajide Sanwo-Olu, initiated LagRide as a solution to improve mobility and provide a multi-modal transportation system for Lagosians.

Purpose of LagRide:

LagRide aims to provide a more modern and reliable alternative to the traditional, often rickety, taxis that were previously prevalent in Lagos.

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DStv Subscription: Court dismisses MultiChoice suit against FCCPC‎‎

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The Federal High Court in Abuja has dismissed a suit filed by MultiChoice Nigeria, the parent company of DStv and GOtv, challenging the Federal Competition and Consumer Protection Commission’s (FCCPC) intervention following a recent hike in subscription cost.

‎‎In the judgment, Justice James Omotoso ruled that the suit constituted an abuse of court process as similar proceedings were already pending elsewhere.

‎‎The judge stressed that MultiChoice should have pursued its arguments in that court. He said if that was done it would have rendered the suit at the Federal High Court procedurally inappropriate.

‎‎Justice Omotoso noted that while the Commission has investigative powers under its establishing Act, it, however, lacks the authority to fix or suspend prices unless as delegated by the President through a gazetted instrument. No such delegation was presented to the court.‎‎

“The power to fix prices is exclusively that of the President. Any decision taken without such delegation is a nullity,” the judge stated.

‎‎He added that because Nigeria operates a free market system, service providers like MultiChoice have the right to set their prices, with consumers free to accept or reject them.‎‎

The judge further ruled that FCCPC’s actions, including directing MultiChoice to suspend its price increase, is in breach of the company’s right to fair hearing and appeared selectively targeted.

He dismissed the FCCPC’s claim that MultiChoice held a dominant market position, calling the argument untenable.

‎‎“The use of services like those provided by the plaintiff is discretionary and not essential. Nigeria can do without it,” Justice Omotosho added.

The judge thereby warned that attempts to fix prices by regulatory bodies could scare off potential investors and harm the economy.

‎‎The court held  that while the FCCPC may investigate market practices, it cannot impose price controls without proper legal backing.‎‎

MultiChoice had increased subscription rates by up to 25% on March 1, 2025, citing inflation and the attendant rose in operational cost. ‎‎

Following public outcry, the FCCPC opposed the move, calling for regulatory review and threatening sanctions, prompting the lawsuit.‎

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FG Announces New Procurement Policy Shift Favouring Local Manufacturing

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The Federal Executive Council (FEC) has approved a “Nigeria First Policy” aimed at prioritising the use of locally made goods and services in all government procurements.

The Minister of Information, Mohammed Idris, made the disclosure saying that the policy seeks to domesticate all government processes.

The Nigerian government expects that with the new policy, local manufacturers will get priority in the provision of goods and services.

“No procurement of foreign goods or services already available locally shall proceed without justification, and where there is an exceptional need for these services to procure from outside, there must be a waiver to be obtained, written waiver to be obtained by the Bureau of Public Procurement (BPP),” Mr Idris said.

“Where no viable local option exists, contracts must include provisions for technology transfer, local production or skills development.

For example, the provision of portal allocations under the sugar master plan should take into consideration participants’ backwards integration plans and investment in Nigeria and ensure compliance with the Master Plan.

“The MDAs have also been directed to immediately conduct an audit of all procurement plans and submit revised versions in line with these directives. Breaches will attract sanctions, including cancellation of procurement processes by such MDAS, and indeed disciplinary action against responsible officers,” the minister noted.

The federal cabinet approved these proposals on Monday and the office of the Attorney General of the Federation has been directed to prepare an Executive Order to be issued by President Bola Tinubu.

This is a major shift in government policy, Mr Idris added. “It puts Nigeria – not foreign companies, not imports – at the heart of our national development.”Once signed into law, Mr Idris said, the legislation will “foster a new business culture that will be bold, confident, but also very, very Nigerian, and it aims at making the government invest in our people and our industries by changing how the government spends money, how we procure and how we also build our economy.”“Going forward, Nigerian industry will take precedence in all procurement processes,” the minister said.

This is a major shift in government policy, Mr Idris added. “It puts Nigeria – not foreign companies, not imports – at the heart of our national development.

”Once signed into law, Mr Idris said, the legislation will “foster a new business culture that will be bold, confident, but also very, very Nigerian, and it aims at making the government invest in our people and our industries by changing how the government spends money, how we procure and how we also build our economy.”

Where local supply falls short, contracts will be structured to build capacity domestically, according to Mr Idris. “Contractors will no longer serve as intermediaries sourcing foreign goods where local factories die. I take the example of the sugar industry.”

“For example, we still have so much importation of sugar coming into this country, yet we have the Nigerian sugar council that was set up to look inward to see how sugar production can be produced, you know, for the benefit of Nigerians.

President Tinubu has proposed that we will no longer just sit there and allow importation to come into this country where there is the capacity for production of these commodities locally.

Now, as I said, the president has proposed the following directives, and all of them have been approved by the Federal Executive Council.”

President Tinubu has proposed that we will no longer just sit there and allow importation to come into this country where there is the capacity for production of these commodities locally. Now, as I said, the president has proposed the following directives, and all of them have been approved by the Federal Executive Council.”

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