Nigerians and Businesses Struggle Despite Fourth Consecutive Inflation Decline

Despite Nigeria recording its fourth consecutive inflation rate decline, ordinary citizens and business owners continue to feel little to no relief from the country’s harsh economic conditions.

According to LMSINT MEDIA, the latest data shows that Nigeria’s inflation rate dropped to 21.88 percent in July, compared to 22.22 percent in June. This downward trend has been in place since April 2025, when inflation stood at 23.7 percent on a month-to-month basis.

The presidency has welcomed this development, with President Bola Ahmed Tinubu’s administration highlighting it as evidence of progress under his two-year leadership.

The government has also pointed to growth in the Gross Domestic Product (GDP), which climbed to ₦372.8 trillion in 2024 after being rebased in July 2025. Similarly, Nigeria’s inflation rate was rebased in January 2025, pushing year-on-year inflation down sharply to 24.48 percent from 34.80 percent.

During her recent visit to President Tinubu, former Finance Minister and current World Trade Organization Director-General, Ngozi Okonjo-Iweala, acknowledged that the economy appeared to be stabilizing.

Rising Prices Despite Positive Reports

However, while these statistical figures present a positive picture, Nigerians on the ground argue that the cost of living continues to worsen.

Key expenses such as food, fuel, transportation, and energy remain alarmingly high:

• A 50kg bag of local rice now costs between ₦69,000 – ₦75,000 in Abuja and Lagos.
• Fuel prices average ₦865 – ₦925 per litre in major cities.
• Cooking gas is sold for ₦1,000 – ₦1,200 per kilogramme.
• Electricity tariffs for Band A customers range from ₦209.50 – ₦231.79 per kilowatt-hour.
• Both road and air transport fares have skyrocketed across the country.

These realities create a sharp contrast between the National Bureau of Statistics (NBS) reports and the daily struggles of Nigerian households and businesses.

Experts Split on Inflation Data

Economic experts remain divided on the interpretation of the inflation figures.

Mazi Okechukwu Unegbu, former President of the Chartered Institute of Bankers of Nigeria (CIBN), expressed doubts over the accuracy of the inflation data released by NBS.

“There is a huge gap between the figures presented by NBS and the reality Nigerians face daily. These statistics look impressive on paper, but in real life, hunger and hardship remain widespread,” Unegbu said in an interview with LMSINT MEDIA.

He further urged the government to prioritize reducing hunger, reviewing interest rates, and improving agricultural policies, rather than celebrating statistics that do not reflect lived realities.

Gbolade Idakolo, Chief Executive Officer of SD & D Capital Management, echoed similar concerns, stressing that food inflation continues to rise due to insecurity in farming regions, the unstable exchange rate, and high costs of agricultural inputs.

“Imported food items remain expensive, while logistics, especially energy and transportation of farm produce, are major contributors to rising food inflation. The government must take stronger action to address these factors,” Idakolo noted.

Meanwhile, renowned economist and former CIBN President, Prof. Segun Ajibola, offered an explanation for the contrasting statistics.

He explained that inflation rates are calculated based on a basket of consumable items within the Consumer Price Index (CPI). Since not all goods and services are included, the decline reported may not reflect the realities of all households across Nigeria.

“The data depends on the selection of items surveyed. While the prices of some items in the CPI basket may decline, many others outside the basket remain expensive. Therefore, NBS reports are estimates that may differ from actual market realities,” Prof. Ajibola explained.

Conclusion

While Nigeria celebrates a fourth consecutive inflation decline, the economic burden on citizens remains severe. The gap between statistical improvements and real-life hardships highlights the urgent need for government action on food security, energy pricing, and agricultural reforms to ensure that inflation control truly translates into relief for Nigerians.