Nigerian economists have called on the Federal Government to reduce energy costs for local manufacturers, expand the use of Compressed Natural Gas (CNG) trucks and improve food transportation as part of efforts to bring inflation down further.
The recommendations come as Nigeria’s headline inflation rate eased to 14.63 per cent in September 2026, compared with 15.39 per cent in August, according to figures attributed to the National Bureau of Statistics (NBS).
Speaking in separate interviews with the News Agency of Nigeria (NAN) in Lagos on Wednesday, the economists warned that high production costs, expensive transportation and inadequate food storage facilities remain major obstacles to sustained price stability.
Economists Demand Cheaper Energy for Manufacturers
Professor Sherifdeen Tella of the Department of Economics at Babcock University, Ogun State, said reducing the cost of energy for domestic manufacturers would help ease pressure on consumer prices.
He urged the government to consider targeted support for diesel costs while ensuring that businesses have access to reliable electricity at affordable rates.
According to Tella, manufacturers struggling with high operating expenses often pass additional costs to consumers, making locally produced goods more expensive.
He explained that affordable energy would strengthen domestic production, reduce dependence on imported goods and support further moderation in inflation.
The economist also recommended temporary increases in food imports to address supply shortages and reduce the financial burden on households.
He said additional food supplies could help ease hunger and improve living conditions, particularly for families whose incomes have been weakened by rising living expenses.
CNG Trucks Could Reduce Food Transportation Costs
Benjamin Akinsoto of BAA Consult identified transportation expenses as another major factor keeping food prices high across Nigeria.
He urged the Federal Government to expand access to CNG-powered trucks, arguing that their operating costs could be lower than those of diesel-powered vehicles.
Akinsoto said cheaper transportation would help narrow the price difference between food sold in farming communities and the same produce sold in major urban markets.
Farmers and traders frequently face significant expenses moving agricultural products from rural production centres to cities, where transportation costs contribute to higher retail prices.
He maintained that addressing these challenges would help make food more affordable while supporting the government’s efforts to contain inflation.
Railway Development and Food Storage Also Critical
Beyond road transportation, Akinsoto called for greater investment in Nigeria’s railway infrastructure to improve the movement of agricultural produce.
He said an efficient rail transport system could provide farmers and food distributors with a more affordable alternative for moving large quantities of produce.
The economist also expressed concern about food losses resulting from inadequate storage and preservation facilities, particularly in rural communities.
He urged the government to expand agricultural storage infrastructure to prevent harvested crops from spoiling before reaching consumers.
According to him, reducing post-harvest losses would improve food availability, support food security and help limit unnecessary price increases.
Nigeria’s Inflation Rate Falls to 14.63%
The latest inflation figures cited in the NAN report show that Nigeria’s headline inflation rate declined from 15.39 per cent in August to 14.63 per cent in September 2026.
The September figure also represents a decline of 6.35 percentage points compared with the 20.98 per cent recorded in September 2025.
The slowdown indicates that the annual rate of increase in consumer prices has moderated, although it does not necessarily mean that the overall cost of goods and services has fallen.
For households, the impact of lower inflation will depend on whether food, transportation, electricity and other essential expenses become more affordable relative to their incomes.
Experts Seek Long-Term Measures to Sustain Inflation Decline
The economists’ recommendations highlight the need to address the underlying costs of producing, transporting and distributing goods across Nigeria.
While temporary food imports could help ease immediate supply pressures, improved electricity, affordable fuel, reliable transport networks and better agricultural storage would support longer-term price stability.
The proposals also underline the importance of policies that strengthen local manufacturing and improve the efficiency of Nigeria’s food supply chain.
With inflation still affecting household spending, the challenge for policymakers is to ensure that the recent slowdown translates into more manageable living costs for Nigerians.
