Despite Nigeria’s headline inflation rate dropping for the fourth consecutive month, citizens and businesses say they are yet to feel any real economic relief as food, energy, and transportation costs remain painfully high.
According to the National Bureau of Statistics (NBS), inflation fell to 21.88 percent in July 2025, down from 22.22 percent in June. The steady decline has been recorded since April when inflation stood at 23.7 percent month-on-month.
The presidency has welcomed the development, hailing it as evidence of President Bola Tinubu’s economic reforms paying off after two years in office.
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Similarly, Nigeria’s Gross Domestic Product (GDP) rose to ₦372.8 trillion in 2024 following a rebase in July 2025. The inflation rate was also rebased in January, bringing year-on-year headline inflation down sharply from 34.80 percent to 24.48 percent.
During her recent visit to the State House, former Finance Minister and current WTO Director-General, Ngozi Okonjo-Iweala, echoed optimism, describing Nigeria’s economy as “stabilising.”
However, beyond the “beautiful statistics,” everyday Nigerians face worsening conditions. A 50kg bag of local rice now sells between N69,000 and ₦75,000 in Lagos and Abuja.
Petrol prices hover around N865–N925 per litre, while cooking gas costs N1,000–N1,200 per kg. Electricity tariffs for Band A range between N209.50 and N231.79 per kWh. Transportation costs, by both road and air, have surged to record highs.
Interest rates remain elevated at 27.50 percent, compounding difficulties for businesses and households.
Former President of the Chartered Institute of Bankers of Nigeria (CIBN), Mazi Okechukwu Unegbu, dismissed the official figures as out of touch with reality.
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“There is a wide difference between the inflation figure by NBS and the reality on the ground. The government believes in statistics, ignoring realities. It is a beautiful report, but at the end of the day, there is nothing to write home about,” he said, urging the government to address hunger, review agricultural and interest rate policies, and stop relying solely on official statistics.
Similarly, Gbolade Idakolo, CEO of SD & D Capital Management, noted that while core inflation is easing, food inflation remains high due to insecurity in farming areas, currency depreciation, and rising energy costs.
“Imported food prices are also maintaining a high rate, while logistics costs—especially energy and transportation—remain a major factor. The federal government must push harder on its agricultural policies,” he said.
Meanwhile, renowned economist and former CIBN President, Prof. Segun Ajibola, explained that discrepancies arise from how NBS calculates inflation based on a selected “basket of goods.”
“Prices of items in the basket may drop, signalling lower inflation, but prices of other essential items outside the basket may keep rising. So, the inflation figure may not fully represent reality,” he explained.
The Centre for the Promotion of Private Enterprise (CPPE) has also stressed that food inflation remains the most pressing economic challenge for households, underscoring the gap between declining headline inflation and worsening living costs.
While the Tinubu administration celebrates improved macroeconomic indices, Nigerians continue to grapple with skyrocketing food prices, high utility bills, and an eroding standard of living—making the inflation figures appear more like an abstract statistical relief than tangible economic recovery.