Economic Analysts Say Nigeria’s Inflation Drop Does Not Translate to Household Relief.
Economic Analysts Say Nigeria’s Inflation Drop Does Not Translate to Household Relief.
Despite Nigeria experiencing its seventh consecutive month of disinflation, many Nigerians are still not feeling any real relief from rising living costs, according to economists and financial analysts. The National Bureau of Statistics (NBS) reported that in October 2025, the headline inflation rate slowed to 16.05 percent from 18.02 percent in September, marking one of the most significant monthly declines this year. Food inflation also eased to 13.12 percent from 16.9 percent previously. However, these figures do not reflect the harsh economic reality facing most households.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), argued that the benefits of disinflation have yet to translate into tangible improvements in living conditions. He pointed out that inflation remains high in critical sectors such as food, transportation, housing, utilities, education, and health — sectors that account for 84 percent of the inflation basket. Yusuf attributed the limited impact to structural challenges like high logistics costs, energy shortages, insecurity in food-producing regions, and climate disruptions, which continue to suppress supply and keep prices high. He emphasized the need for comprehensive reforms supported by coordinated monetary and fiscal policies to turn statistical improvements into genuine economic progress.
Former CIBN President Okechukwu Unegbu criticized the official inflation figures, claiming they are flawed and do not reflect reality. He asserted that Nigeria’s true inflation rate is closer to 29 percent, driven by persistent increases in food, rent, transportation, and fuel costs.
Economist Prof. Godwin Oyedokun explained that most Nigerians still do not feel any relief because the structural drivers of the cost-of-living crisis remain unaddressed. He highlighted that prices are still rising, wages have stagnated, and key issues such as exchange rate volatility, energy costs, insecurity, and logistics inefficiencies continue to push prices upward. He also noted that inflation expectations remain high, with businesses preemptively raising prices, and regional disparities and widespread poverty further diminish any perceived benefits. Overall, despite the slow pace of inflation, the high level of prices and persistent structural challenges mean that most Nigerians continue to struggle with economic hardship.
