The Centre for the Promotion of Private Enterprise (CPPE) has warned that the cost of living may rise despite Nigeria’s economic growth in the third quarter of 2025.
Nigeria’s gross domestic product (GDP) grew by 3.98 per cent year-on-year in the third quarter of 2025, slightly lower than the 4.3 per cent posted in Q2, but still reflecting what CPPE described as a sustained consolidation of macroeconomic stability.
In its latest policy brief, signed by its chief executive, Mr Muda Yusuf, echoing the National Bureau of Statistics (NBS), attributed the performance to improved exchange-rate stability, moderating inflation, stronger fiscal operations and rising investor confidence; noting these gains have supported business activities across key sectors, particularly services, ICT, construction and finance.
However, CPPE warned that the social impact of reforms remains a significant challenge.
“Although disinflation is underway and some food and manufactured goods are easing in price, the cost-of-living crisis continues to weigh heavily on households,” the organisation noted, calling for urgent targeted interventions to protect vulnerable groups.
The organization said that while the economy is on a “gradual but steady recovery path,” long-standing structural constraints, particularly in agriculture, manufacturing, trade, and housing, continue to limit productivity, weaken competitiveness and heighten cost-of-living pressures for households.
“With continued reforms, targeted investments, and strengthened governance, Nigeria is well-positioned to deliver stronger economic outcomes in the months ahead,” the CPPE stated.
Providing some sectoral analysis, CPPE warned that while real estate posted an extraordinary 89 per cent nominal growth buoyed by rising property values, the trend is worsening housing affordability in major cities.
The organisation also showed that trade remains affected by underfunding and thus grew by 1.98 per cent still constrained by high import costs, weak demand and ongoing import-substitution measures, adding that social sectors such as education (2.51 per cent) and health (2.89 per cent) showed limited progress.
CPPE also revalead that the textile and apparel industry remained in recession, contracting by 2.41 per cent, while the paper and pulp subsector fell by 1.07 per cent.
The review also noted slower activity across crude petroleum, cement, transportation, rubber and plastics, and food and beverages. Meanwhile, accelerated growth was observed in pharmaceuticals, construction, oil refining, entertainment, broadcasting, auto assembly and health services.
CPPE also urged the federal government to intensify structural reforms and accelerate targeted investments to secure stronger, more inclusive economic growth.