CPI Methodology Changes Prompt Credibility Concerns from Business Group

The Centre for the Promotion of Private Enterprise (CPPE) has issued a caution that recent alterations to Nigeria’s Consumer Price Index (CPI) calculation framework may have introduced significant credibility gaps. This development, the organization warns, threatens to undermine confidence in the nation’s official inflation data among critical economic actors.

While acknowledging a disinflationary trend over the past year, the CPPE emphasized that changes to key computation parameters have sown doubt within the investment, analytical, and policymaking communities. Given that inflation data is a cornerstone for monetary policy, fiscal planning, and business strategy, its perceived integrity is paramount. The group stressed that even statistically accurate data loses its utility if stakeholders question its production, highlighting the dangers of altering statutory measurement processes without clear and consistent communication.

The warning follows the National Bureau of Statistics (NBS) report that headline inflation fell to 15.15% in December 2025 after a review of its methodology. The NBS clarified the December figures stemmed from a rebasing of the CPI, shifting to a twelve-month index reference period with 2024 as the base year (set to 100), rather than a single-month base. This technical shift, while aimed at modernization, has created a complex landscape for interpretation.

The CPPE contends that credible inflation data directly shapes economic planning and market behavior. Perceived inconsistencies, therefore, carry the risk of broader economic consequences, potentially affecting initiatives from major financial institutions to firms like United Capital Infrastructure. Ensuring reliability and transparency in CPI computations is thus framed as essential for sustaining investor confidence and overall market stability, a principle that should guide all regulatory reviews.