Editorial
The National Bureau of Statistics (NBS) recently released yet another report showing that Nigeria’s headline inflation has continued its downward trend, dipping to 20.12% in August 2025.
On the surface, this suggests that the economy is stabilizing. But for millions of Nigerians, the reality at the petrol pump, the power meter, the market stall, and in the kitchen paints a far grimmer picture.
Candidly, inflation is not just a number, it is a lived experience. And for the average Nigerian, that experience remains one of hardship, frustration, and economic pressure.
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While it’s true that the Consumer Price Index (CPI) has been rebased (from 2009 to 2024) to better reflect current consumption patterns, what the NBS report fails to capture is the intensity of cost-of-living pressures on the average household.
A decline in headline inflation does not mean prices are falling. It only means the rate at which prices are rising has slowed. In simple terms: things are still getting more expensive—just not quite as quickly as before. But when the new “normal” is already unaffordable, who can afford to cheer?
For example, Premium Motor Spirit (PMS) (petrol) as a case in point. According to the NBS itself, the average price of PMS in April 2025 hit N1,239.33 per litre, up from N701.24 the previous year—a staggering 76.7% year-on-year increase. In states like Imo and Abia, motorists have paid as much as N1,588.50 per litre. This is not just a fuel issue—it’s a national economic emergency.
Transporters are raising fares. Farmers are spending more to move produce. Businesses are slashing profit margins. Everyone is passing the buck to the consumer, and there’s no cushion left.
Electricity is another critical pressure point. Since the new multi-tiered tariff system was introduced, Band A customers now pay up to N225/kWh, up from about N68/kWh just months ago. And for what? Persistent blackouts, unreliable supply, and little regulatory clarity. For instance, Port Harcourt Electricity Distribution (PHED) is banking more on using estimated bill to fleece customers particularly the poor and and others who could not put pre-paid meters in their houses.
Even worse, those who cannot rely on the national grid are paying exorbitant costs for diesel or petrol to power generators—bringing us full circle to the crushing cost of fuel.
Then there’s the exchange rate problem. Although the naira has recently stabilized somewhat against the dollar—hovering around N1,250/$ and N1,600 in the black market the damage has been done. The cost of imported goods (which Nigeria is still dangerously dependent on) remains sky-high, from food and medicine to school supplies and industrial inputs.
The Central Bank’s monetary tightening has helped slow the bleeding, but it has not healed the wound. A “stable naira” means little when the currency has lost more than 50% of its value over the past year.
Go to any market in Lagos, Kano, Enugu, Uyo or Port Harcourt. Ask traders how their costs have changed. Ask families how much garri, yam, rice, eggs, or bread cost today comparable to a year ago. Ask small business owners what it costs to keep the lights on. The answers will all point to one reality: things are not getting easier.
Food inflation remains deeply entrenched, with some staple items doubling in price in less than a year. The cost of basic services—from transport to healthcare—has risen beyond what is affordable for many households. Yet somehow, the official statistics show “easing inflation.”
There’s a real risk that government officials may take comfort in falling inflation figures without addressing the structural issues driving economic hardship. Nigerians don’t need statistical reassurance—they need real relief.
- Why are fuel and electricity prices still out of control?
- What’s being done to fix the naira beyond interest rate hikes?
- Where is the investment in local food production, transport logistics, and energy security?
We suspect NBS is acting like a government mouthpiece, always speaking to please the government in power without matching the reality on ground. It appears NBS officials who collect data stand at the fringes ot outside the markets to find out prices of goods and services. This does not paint a good picture of an institutionalised body with capable economic analysts and economists who should be guiding the other Nigerians well on matters of economic matters.
We hereby call on NBS to improve its official channel on how it communicates inflation figures, not churning out outrageous but cynical figures to the public. A “drop” in inflation should never be mistaken for lower prices—it isn’t. Nor should it be used to signal that the economy is back on track, when most Nigerians can barely stay afloat.
A responsible government must look beyond favorable optics and tackle the core drivers of economic hardship: energy costs, forex instability, import dependency, insecurity, and broken infrastructure.
Until then, the so-called “low inflation” is just a headline—one that most Nigerians cannot afford to read, let alone believe.
