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: 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.
PMS Price Increased to N1025.00 by NNPC: What This Means for NigeriansIn recent news that has stirred up significant reactions across Nigeria, the Nigerian National Petroleum Corporation (NNPC) has announced a substantial increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. As of the latest update, the price has surged to N1025.00 per liter. This sharp increase marks one of the highest price hikes in the country’s recent history, sparking questions and concerns about the future of fuel prices, economic stability, and the daily lives of Nigerians.Why the Increase?The NNPC attributes this price adjustment to several pressing economic factors, both global and domestic: 1. Global Oil Prices: Oil prices have been volatile, largely due to international conflicts, global energy demands, and OPEC’s regulatory influence. The global oil market’s instability translates to fluctuations in the cost of crude, which affects downstream sectors like PMS production and distribution. 2. Foreign Exchange Rates: With Nigeria’s dependence on imports for refined petroleum products, the strength (or weakness) of the Naira against major currencies significantly affects the landing costs of PMS. Recent devaluations of the Naira have made it more expensive for the NNPC to import and refine fuel. READ ALSO 3. Subsidy Removal: Earlier this year, the federal government officially removed the fuel subsidy, aiming to reduce government spending. This has placed the full weight of fuel costs on consumers, making PMS prices subject to direct market influences without government intervention.Economic Implications of the Price HikeThis sudden spike in PMS prices brings far-reaching implications for the Nigerian economy and everyday life: 1. Inflation: Fuel price hikes often lead to higher transportation costs, which can trigger a ripple effect across various sectors. Increased transportation costs drive up the prices of goods and services, leading to inflation. Nigerians can expect a rise in the cost of essential items, from food to housing. 2. Impact on Small Businesses: Many small and medium enterprises (SMEs) depend on fuel for operations, particularly given the country’s unreliable power supply. Higher PMS costs will increase operational expenses, potentially forcing some businesses to reduce workforce or scale back on production. 3. Transport Sector Strain: The transport sector is likely to feel the immediate effects, as drivers pass the increased fuel costs onto passengers. This will make daily commuting more expensive for millions, straining household budgets. 4. Reduced Purchasing Power: With the general rise in the cost of living, many Nigerians will have less disposable income, affecting spending patterns and quality of life. Lower purchasing power can lead to slower economic growth, as consumer spending is a vital component of economic activity.Potential Responses from the Government and CitizensThe federal government may explore options to cushion the effects of this increase. RELATED NEWS There is talk of possible interventions to support public transport systems, though these discussions are still speculative. Various citizen advocacy groups have also voiced their discontent, demanding government action to prevent further strain on the average Nigerian.ConclusionThe NNPC’s price adjustment reflects the complexities of balancing global economic factors with national stability. As Nigerians navigate the implications of the N1025.00 PMS price, it’s crucial for both the government and private sectors to consider strategies to help citizens manage the increased costs. Whether through alternative energy solutions or economic policies that can stabilize the currency, proactive steps are needed to ensure resilience in the face of these rising challenges.
