The Centre for the Promotion of Private Enterprise (CPPE) has warned that recent changes to Nigeria’s Consumer Price Index (CPI) methodology could weaken confidence in official inflation statistics, potentially affecting economic decision-making and investor trust.

In a policy brief signed by its Chief Executive Officer, Dr. Muda Yusuf, the organisation noted that although inflation has followed a downward trend over the past year, adjustments to the computation framework have created uncertainty among analysts, businesses, policymakers, and investors.

The group stressed that inflation data plays a central role in shaping monetary policy, fiscal planning, wage negotiations, investment decisions, and business pricing strategies, making credibility in the measurement process essential.

CPPE explained that even accurate inflation figures lose relevance if stakeholders doubt the methodology used to generate them.

The organisation cautioned that recent changes to CPI calculation parameters have introduced perception gaps, raising questions about the reliability and comparability of published figures.

According to CPPE, maintaining transparency and consistency in statistical reporting is critical to preserving market confidence and supporting effective economic governance.

Nigeria’s statistical agency recently reported a sharp decline in headline inflation to 15.15 per cent in December 2025 following a rebasing of the CPI framework.

The revised data showed a marginal increase in the CPI index to 131.2 points in December from 130.5 points in November, indicating a slower pace of price growth.

Officials clarified that the figures reflected a new measurement approach using a twelve-month reference period, with the average CPI for 2024 set as the benchmark instead of a single-month base.

The agency also indicated that two inflation estimates would be released for December to improve transparency during the transition period.

CPPE warned that credibility concerns surrounding inflation data could complicate policy formulation and weaken investor confidence if not addressed through clear communication and methodological transparency.

The organisation urged authorities to ensure that statistical reforms are accompanied by detailed explanations to maintain trust and preserve the integrity of economic indicators relied upon by markets.