|By Adejumo Adekunle-
Two Consecutive Drops Indicate Macro Stability—CPPE
Food Inflation Also Declines, Easing Consumer Pressure
Experts Urge Policy Action to Cut Living Costs
Economic analysts and the Centre for the Promotion of Private Enterprise (CPPE) have linked Nigeria’s second consecutive drop in inflation to signs of economic recovery, though they caution that the high cost of living remains a major concern.
The Chief Executive Officer of CPPE, Muda Yusuf, the CEO of SD & D Capital Management, Gbolade Idakolo, and Professor Godwin Oyedokun of Lead City University, Ibadan, shared their insights in separate interviews.
Their remarks followed fresh data from the National Bureau of Statistics (NBS), revealing that Nigeria’s headline inflation declined to 23.18% in February 2025, down from 24.48% in January. Food inflation also fell from 26.08% to 23.51%.
Inflation Slowdown Tied to Macro Stability—CPPE
Muda Yusuf attributed the inflation drop to reduced exchange rate volatility and a slight decline in premium motor spirit (PMS) prices. However, he warned that the 23.18% rate remains excessively high, urging policymakers to implement urgent measures to lower the cost of essentials like food, pharmaceuticals, and cooking gas.
“The inflation slowdown is largely due to a stabilizing exchange rate and a modest dip in energy costs. However, the government must intensify efforts to make staple foods and essential products affordable,” Yusuf stated.
Price Pressures Easing, But Reality Differs—Prof. Oyedokun
Professor Oyedokun noted that the inflation decline suggests that price-driving forces may be stabilizing, offering potential relief to consumers and businesses. He attributed the trend to improved supply chains, seasonal food production factors, and government policies aimed at curbing inflation.
However, he acknowledged a lingering gap between official inflation figures and real market prices, citing producer price hikes, distribution costs, and uneven regional price trends as contributing factors.
Why Falling Inflation Hasn’t Lowered Prices—Idakolo
Idakolo explained that despite the lower inflation rate, Nigerians continue to experience high costs due to persistent weaknesses in the naira, high exchange rates, and elevated interest rates.
“The inflation figures do not yet reflect in market prices because economic fundamentals—like naira strength and interest rates—remain unfavorable. However, if the government sustains targeted price-reduction policies, consumers will eventually feel the impact,” he stated.
With inflation easing but living costs still biting, experts emphasize the need for sustained economic reforms to drive long-term price stability.
