The Centre for the Promotion of Private Enterprise (CPPE) has warned that the cost of living may rise despite Nigeria’s GDP growth in the third quarter of 2025.
This was contained in its latest policy brief, signed by CEO, Dr Muda Yusuf, made available to Naijaonpoint.
Nigeria’s GDP grew by 3.98% YoY in Q3 2025, slightly lower than the 4.3% posted in Q2, but still reflecting what CPPE described as a sustained consolidation of macroeconomic stability.
The think tank attributed the performance to improved exchange-rate stability, moderating inflation, stronger fiscal operations and rising investor confidence.
These gains, it said, 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.
CPPE urged the Federal Government to intensify structural reforms and accelerate targeted investments to secure stronger, more inclusive economic growth.
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.
Social sectors such as education (2.51%) and health (2.89%) showed limited progress, which CPPE attributed to chronic underfunding.
CPPE says the textile and apparel industry remained in recession, contracting by 2.41%, while the paper and pulp subsector fell by 1.07%.
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.
To sustain growth and ease pressures on businesses and households, CPPE outlined several priority policy actions:
In Q2 2025, NBS reported that Nigeria’s GDP grew by 4.23% year-on-year in real terms in the second quarter of 2025.
In Q2 2025, NBS reported that Nigeria’s GDP grew by 4.23% year-on-year in real terms in the second quarter of 2025.
This marks a stronger performance than the 3.48% recorded in the corresponding period of 2024.
The report shows that aggregate GDP at basic prices stood at N100.73 trillion in nominal terms, compared with N84.48 trillion in Q2 2024, representing a nominal growth of 19.23% year-on-year.